Author- Kushal Khaire
Batch: F1
Roll. No.: -21230023761
Introduction:
KPIT Technologies Limited is an Indian multinational corporation which provides embedded software and product engineering services to automotive companies. Popularly known as KPIT, the company is headquartered in Pune and has development centers in Europe, USA, Japan, and China, apart from India.
Objective:
To Calculate Beta(β) and its significance of the equity stock of KPIT Technologies.
Data Collection:
Data was downloaded from nseindia.com for 01/11/2022 to 31/10/2023 for Nifty as well as for KPIT Technologies. 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 KPIT technologies. Finally, data analysis was done.
Weekly returns of Nifty = X
Weekly returns of KPIT technologies = 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 KPIT Technologies is the dependent variable and Nifty 50 is the independent variable.
Intercept, a = -1.067
Slope, b = -0.00043
R Square = 0.00606
F = 0.29313093
So, the regression equation is given by-
Y (KPIT Technologies)= -1.067 +(-0.00043)* X (Nifty)
The above equation shows us the relationship between KPIT Technologies and Nifty. The positive sign indicates that if Nifty rises then the price of KPIT Technologies shares will also rise and vice-versa. If Nifty rises one unit i.e., Nifty rises by one rupee then Equity will rise by -0.00043 and vice versa. t-stat for b (co-efficient of Nifty) is -0.541 and the p-value is 0.590, statistically significant for Equity at 0.50% level. The number of observations is 50.
Conclusion: –
Beta is -0.00043, which is lower than 1, it means KPIT Technologies is not good for short-term investment.
Reference:
Views
KPIT Technologies has an overall rating of 3.9 out of 5 on Glassdoor, based on over 4,107 reviews. 78% of employees would recommend working at KPIT Technologies to a friend and 80% have a positive outlook for the business.
Here are some other insights from reviews:
Company culture
KPIT Technologies is known for its company culture, which is rated at the top and given a rating of 3.5.
Skill development
KPIT Technologies is known for skill development, which is rated at the top and given a rating of 3.6.
Career growth
Career growth is rated the lowest at 3.2 and can be improved.
Leadership
Some say that KPIT’s leadership is very passionate with clear vision and goals.
Exposure to new technologies
Some say that working at KPIT has given exposure to new technologies and tools.
KPIT Technologies’ customers include top auto manufacturers such as BMW, GM, FCA, Honda, Jaguar, Hyundai, Ford, and Navistar.