Relation between Nifty and Deepak Nitrite LTD.
Author- Deepak Yadao Nikhare
Batch: F1
Roll. No.: -21230023075
Introduction:
The company was incorporated in March 1970. Sodium nitrite and nitrate plants were commissioned at Nadesari, Vadodara, Gujarat and production started in 1972. The plant produces chemicals like sodium nitrite, sodium nitrate and other allied chemicals, dyes, hexamethylene tetramine and dyes intermediates.
Their Vision Is,
“To become the FASTEST GROWING Indian chemical intermediates company.”
Like a tree with strong roots, Deepak has and is growing taller with fresh branches and new off-shoots to fulfill its growth aspirations. Our new brand identity and a refreshed corporate architecture, vision and way forward has set the right tone for the next phase of our growth, expansion and profitability
Objective:
To Calculate Beta(β) and its significance of the equity stock of Deepak Nitrite LTD.
Data Collection:
Data was downloaded from nseindia.com for 01/11/2022 to 31/10/2023 for Nifty as well as for Deepak Nitrite LTD. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both. Returns for X and Y were calculated, X being Nifty and Y being Shoppers Stop Ltd. Finally, data analysis was done.
Weekly returns of Nifty = X
Weekly returns of Deepak Nitrite Equity = Y
Linear Regression was carried out.
Data Analysis: –
The regression equation has the form:
Y = a + b*X
Where, Y is the dependent variable,
X is the independent variable,
a is the intercept,
b is the slope.
In our case Deepak Nitrite Ltd is the dependent variable and Nifty 50 is the independent variable.
Intercept, a = 1722.939
Slope, b = 0.007694
R Square = 0.004516
F = 0.213235
So, the regression equation is given by-
Y (Deepak Nitrite.) = 1722.939 + 0.007694* X (Nifty)
The above equation shows us the relationship between Deepak Nitrite and Nifty. The positive sign indicates that if Nifty rises then the price of Deepak Nitrite shares will also rise and vice-versa. If Nifty rises one unit i.e., Nifty rises by one rupee then Equity will rise by 0.007694 and vice versa. t-stat for b (co-efficient of Nifty) is 0.461774 and the p-value is 0.646374. The number of observations is 50.
Conclusion: –
Beta is 0.007694, which is lower than 1, it means Deepak Nitrite Ltd is good for long-term investment.
Reference: –
https://www.godeepak.com/the-group/
Views
Deepak Nitrite Limited has an overall rating of 4.0 out of 5 based on over 159 anonymous employee reviews on Glassdoor. 72% of employees would recommend working at Deepak Nitrite Limited to a friend and 79% have a positive outlook for the business.
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