TITLE: Relationship of Shalimar Paints Ltd. with Nifty50
AUTHOR: Shivpal Singh
Batch = Finance 3 (F3) ITM Business School
INTRODUCTION: The history of Shalimar Paints is the history of the paint industry in India and South-East Asia. Shalimar Paint Color & Varnish Co. was established in 1902 in Howrah, West Bengal by two Britishers – A N Turner and A N Wright. In the same year, the company set-up a large-scale manufacturing plant in Howrah, the first such plant in South-East Asia.
Rapidly expanding presence & reach, Shalimar soon became the country’s leading paint brand. India’s iconic structures like Rashtrapati Bhavan, Howrah Bridge, Vidyasagar Setu, Salt Lake Stadium, continue to use Shalimar Paints. Today, Shalimar Paints has 30+ depots and the company services 5,000+ dealers across the country.
OBJECTIVE: To calculate beta and find its significance.
VIEWS AND REVIEWS: Revenue:
Shalimar Paints Ltd’s revenue jumped 8.57% since last year same period to ₹121.41Cr in the Q2 2023-2024. On a quarterly growth basis, Shalimar Paints Ltd has generated -4.58% fall in its revenue since last 3-months.
Net Profits:
Shalimar Paints Ltd’s net profit fell -138.33% since last year same period to ₹-25.62Cr in the Q2 2023-2024. On a quarterly growth basis, Shalimar Paints Ltd has generated -149.46% fall in its net profits since last 3-months.
Net Profit Margins:
Shalimar Paints Ltd’s net profit margin fell -119.52% since last year same period to -21.10% in the Q2 2023-2024. On a quarterly growth basis, Shalimar Paints Ltd has generated -161.44% fall in its net profit margins since last 3-months.
DATA COLLECTION: Nifty and Shalimar Paints Ltd. closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return of Shalimar Paints Ltd. 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:
Equation: Y = -9.8363918 + 0.00328096X
- of Observations = 49
R-square = 0.10669681
F-static = 5.613716
P-value = 0.02198
INTERPRETATION:
The above equation shows the relation between Nifty50 and Shalimar Paints Ltd.
Return of Shalimar Paints Ltd. is dependent variable and return of Nifty50 is independent variable.
Negative sign means if Nifty50 is less by 1 unit then share price of Shalimar Paints Ltd will also less by 0.10669681 and vice-versa.
Number of observations are 49.
2.369328155 is the t-stat for Y, the p-value for which is 0.02198
R square is 0.10669681 which means 0% of variances in Shalimar Paints Ltd. are explained by Nifty.
F is 5.613716, p-value for this 0.02198 which means model is statistically significant at 1% level.
CONCLUSION: Beta is -9.836391777 which is less than 1, it means Shalimar Paints Ltd.is good for long term investment.