Introduction:

Adani Ports and Special Economic Zone Limited, headquartered in India, stands as an integrated entity in the domains of ports and logistics. The company’s business segments encompass Port and special economic zone (SEZ) activities, along with a diverse set of operations categorized under the umbrella of Others. Within the Port and SEZ activities segment, Adani Ports is actively involved in the development, operation, and maintenance of port services, ports-related infrastructure development activities, and the establishment of infrastructure within contiguous special economic zones. Geographically, Adani Ports has made significant strides by developing and managing approximately 12 ports and terminals strategically positioned along both the west coast and east coast of India.

Objective:

To find out Beta and its significance.

Views & Reviews:

Credit rating of IND AA /Stable is hugely positive for Adani Ports.

Adani Ports & Special Economic Zone has TTM P/E ratio 26.25 as compared to the sector P/E of 14.38. There are 19 analysts who have initiated coverage on Adani Ports & Special Economic Zone. There are 10 analysts who have given it a strong buy rating & 8 analysts have given it a buy rating.

Data Collection:

The closing prices of equity were collected from NSE India Index and Adani Ports for the period 01/10/2022 to 30/09/2023 considering their weekly close rates calculated the returns and formed the regression analysis.

Data Analysis:

The regression equation is as follows-

Y= -0.2379631 + 1.758054X

The above equation shows us the relationship between weekly returns of Nifty 50 and weekly returns of Adani Ports.

The Weekly returns of Nifty 50 is independent variable, and the weekly returns of Adani Ports is dependent variable. The positive sign shows that if weekly returns of Nifty 50 rises, weekly returns of Adani Ports also rises and vice versa.

It implies that if the weekly returns of Nifty 50 (X) increase by 1 unit, the weekly returns of Adani Ports (Y) is expected to increase by approximately 1.758054 units.

The number of observations is 49 and the adjusted R square is 0.126939, which means 13% of weekly returns of Adani Ports depends upon weekly returns of Nifty 50. In other words, 87% is error which may be due to other variables which are not taken in the model.

F is 7.9789 and P-value is 0.0069 which means that the overall model is statistically significant at 5% level.

Conclusion:

Since the Beta is more than 1, It is more volatile than the market and hence, Adani Ports is good for short term investment.

RELATIONSHIP BETWEEN NIFTY 50 AND ADANI PORTS