Title: Relationship of Raymond with Nifty50.
Author: Raksha Sharma.
Introduction: It was incorporated as the Raymond Woollen Mill during the year 1925 by Albert Raymond and Abraham Jacob Raymond near Thane Creek. Lala Kailashpat Singhania took over The Raymond Woollen Mill in the year 1944.
Objectives: To calculate beta and find its significance.
Views & Reviews: Raymond LTD is a stock that hasn’t disappointed investors. The company continues to deliver exceptional performance yearly, reflecting Raymond’S share performance. Raymond has delivered a 10-year CAGR of 19% from INR 176.40 on 2013 to currently trading at INR 1752 per share on 2023.
Data collection:
Data is downloaded from https://www.nseindia.com/reports-indices-historical-index-data , https://www.nseindia.com/get-quotes/equity?symbol=RAYMOND for 1-10-2022 to 30-09-2023 period.
Regression Equation: Return of Raymond = -3847.82
|
–0.289271 |
(Return of Nifty 50)
R Square = 0.81396 (14.34014)
F = 205.6395
Interpretation: In the above equation shows the relationshipbetween Nifty 50 and Raymond share. Return of Raymond is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, Raymond share price falls. If Nifty 50 price rises 1 unit, Raymond share price will fall by 0.289271 unit & vice versa. No of observation are 50. Figure which is written in bracket 14.34014 is t test for b. The P value for which is 8.75E-19which means Nifty 50 is statistically insignificant at 5% level. R square is 0.813964 which means 81.39% of variances in Raymond share price are explained by Nifty 50 in other words 18.61% is error means 18.61% is due to the variables which are no in the model. F is 205.6395. Overall model is statistically insignificant at 5% level.
Conclusion: Beta is -3847.82 is less than 1 it means Raymond is good for long term investment.
References: