Research Methodology Assignment
Title: Relationship of Motilal Oswal with Nifty50.
Author: Mohit Modi
Introduction: Motilal Oswal Financial Services Ltd (MOFSL) was set up by Motilal Oswal and Raamdeo Agrawal as a broking house in 1987.The company entered into investment banking in 2005, followed by private equity fund in 2006.
Objective: To calculate Beta and find its significance.
Views and Reviews: Motilal Oswal Financial Services is trading -1.14% lower at Rs 1,253.75 as compared to its last closing price. Motilal Oswal Financial Services has been trading in the price range of 1,279.85 & 1,236.50. Motilal Oswal Financial Services has given 84.52% in this year & 4.42% in the last 5 days.
Motilal Oswal Financial Services has TTM P/E ratio 8.96 as compared to the sector P/E of 21.26.There are 3 analysts who have initiated coverage on Motilal Oswal Financial Services. There are 2 analysts who have given it a strong buy rating & 1 analysts have given it a buy rating. 0 analysts have given the stock a sell rating.
The company posted a net profit of 531.19 Crores in its last quarter.
Listed peers of Motilal Oswal Financial Services include Tata Investment Corporation (0.23%), IDFC (0.20%), Motilal Oswal Financial Services (-1.14%) etc.
Motilal Oswal Financial Services has a 69.53% promoter holding & 30.47% public holding.The Mutual Fund holding in Motilal Oswal Financial Services was at 0.02% in 30 Sep 2023. The MF holding has decreased from the last quarter. The FII holding in Motilal Oswal Financial Services was at 6.29% in 30 Sep 2023. The FII holding has decreased from the last quarter.
Data collection: Nifty50 and Motilal Oswal Financial Services Ltd (MOFSL) closing price was collected from yahoofinance.com. Weekly return of Nifty50 is termed as “X” and weekly return of Motilal Oswal Financial Services Ltd (MOFSL) is termed as “Y”. Besides that, a few other things written in this report are taken from other websites and its information is provided in references.
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 Motilal Oswal Financial Services Ltd (MOFSL) is the dependent variable and Nifty 50 is the independent variable.
Intercept, a = -0.110
Slope, b = 0.985
R Square = 0.978
F = 2218.38
So, the regression equation is given by-
Y (Motilal Oswal Financial Services Ltd (MOFSL) = -0.110+ 0.985* X (Nifty)
The above equation shows us the relationship between Motilal Oswal Financial Services Ltd (MOFSL) and Nifty. The positive sign indicates that if Nifty rises then the price of Motilal Oswal Financial Services Ltd (MOFSL) shares will also rise and vice-versa. If Nifty rises one unit i.e., Nifty rises by one rupee then Equity will rise by 98.52 and vice versa. t-stat for b (co-efficient of Nifty) is 47.099 and the p-value is 7.679, statistically significant for Equity at 767.9% level. The number of observations is 50.
Conclusion: Beta is 0.985 which is less than 1, it means that PepsiCo is good for long term investment.
Reference:
http://www.yahoofinance.com/
https://www.livemint.com/market/market-stats/stocks-motilal-oswal-financial-services-share-price-nse-bse-s0003637