Title: Relationship of Radico Khaitan Ltd With Nifty50
Author: Rituraj Agrawal
Introduction:
Radico Khaitan Limited (“RKL”) is among the oldest and one of the largest manufacturers of Indian Made Foreign Liquor (“IMFL”) in India. Earlier known as Rampur Distillery, Radico Khaitan commenced its operations in 1943 and over the years emerged from a major bulk spirits supplier and bottler to other spirit manufacturers to the originator of four millionaire labels and over fifteen organically grown brands.
Radico Khaitan has been a pioneer in this industry, with brands such as Rampur Whisky, 8PM Whisky, Magic Moments Vodka, Contessa Rum & Old Admiral Brandy in its brand portfolio.
Radico Khaitan, earlier known as Rampur Distillery, commenced its operation in 1943 and is amongst the oldest & largest manufacturers of IMFL in India.
Objectives:
To Calculate Beta And Find Its Significance.
View And Reviews:
Radico Khaitan has mastered the art of delivering an exceptional whisky experience through their premium collection. As an aficionado of fine spirits, I’ve been continually impressed by the depth and quality of their offerings.
Data Collection:
Data was downloaded from yahoofinance.com for 01/11/2022 to 31/10/2023 for Nifty as well as for Radico Kaitan. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both of them. Returns for X and Y were calculate, X being Nifty and Y being Radico Khaitan ltd . Finally data analysis was done.
Data Analysis:
Equation- Return of Radico Khaitan
Y = 0.367532126+0.535861387X
(1.456016535) ( t-stat for b)
R Square = 0.0431593
F = 0.152036008
The above equation shows the relationship between Nifty 50 and Radico Kahitan ltd. Return of Radico Khaitan ltd is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases Radico Khaitan ltd also increases. If Nifty50 price rises by 1 unit, Radico Khaitan ltd share price will rise by 614.25 and vice versa. No of observation are 50. Figure which is written in bracket that is (1.456016535) is t- stat for b. The P value for which is 0.152036008 which means Nifty 50 is statistically insignificant at 15% level. R square 0.0431593 is which means 4.315 %of variances in Radico Khaitan ltd share price are explained by Nifty 50 in other words 123.30% is error means 123.30 % is due to the variables which are not in the model. F is 2.11998415. Overall model is statistically insignificant at 20% level.
Conclusion:
Beta 0.535861387 is which is less than 1, therefore it is good for long term investment.
References:
https://finance.yahoo.com/
