RESEARCH METHODOLOGY ASSIGNMENT
Relation between Nifty and DR Reddy Laboratories Ltd
AUTHOR: – DEV WAJA (FINANCE- 3)
Roll. No.: –21230023766
Introduction: –
Dr. Reddy’s Laboratories is a prominent Indian multinational pharmaceutical company founded in 1984 by Dr. K. Anji Reddy. Headquartered in Hyderabad, Telangana, it has become a key player in the global pharmaceutical industry. The company engages in the development, manufacturing, and marketing of a diverse range of pharmaceutical products, including generic formulations, biosimilars, active pharmaceutical ingredients (APIs), and proprietary medications. Dr. Reddy’s has a substantial global presence with operations in North America, Europe, Russia, and the Asia-Pacific region. Emphasizing research and development, the company focuses on therapeutic areas such as cardiovascular, diabetes, oncology, gastroenterology, and central nervous system disorders. Known for its commitment to quality and regulatory compliance, Dr. Reddy’s Laboratories contributes significantly to healthcare worldwide. As a publicly traded company, its financial performance is closely monitored by investors, and it actively participates in corporate social responsibility initiatives. For the latest information, it is recommended to refer to the company’s official sources and reports.Top of Form
Objective: –
To Calculate Beta(β) and its significance of the equity stock of Dr REDDY LABORATORIES Ltd.Reviews: –
Reviews: –
DR Reddy Laboratories Ltd. As of my last knowledge update in January 2022, I don’t have access to real-time data, including current reviews of specific companies. To get the latest and most accurate information on Dr. Reddy’s Laboratories or any other company, I recommend checking recent reviews on reliable platforms like Glassdoor, Indeed, or other employee review sites. Additionally, financial news sources and stock market analysis platforms may provide insights into the company’s overall performance and market reputation. Keep in mind that opinions can vary, so it’s beneficial to consider a range of perspectives when evaluating a company.
Data Collection: –
Data was downloaded from nseindia.com for 01/10/2022 to 31/9/2023 for Nifty as well as for DR Reddy Laboratories Ltd. 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 DR Reddy Laboratories Ltd. Finally, data analysis was done.
Weekly returns of Nifty = X
Weekly returns of Siemens Equity = 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 DR Reddy Laboratories Ltd is the dependent variable and Nifty 50 is the independent variable.
Intercept, a = 0.386788
Slope, b = 0.561728
R Square = 0.083037
F = 4.256151
So, the regression equation is given by-
Y (DR Reddy Laboratories Ltd.) = –0.386788+0.561728 * X (Nifty)
The above equation shows us the relationship between DR Reddy Laboratories Ltd and Nifty. The positive sign indicates that if Nifty rises then the price of DR Reddy Laboratories Ltd shares will also rise and vice-versa. If Nifty rises one unit i.e., Nifty rises by one rupee then Equity will rise by 143.8 and vice versa. t-stat for b (co-efficient of Nifty) is 2.06 and the p-value is 0.044657, statistically significant for Equity at 95% level. The number of observations is 49.
Conclusion: –
Beta is 0.561728, which is greater than 1, it means DR Reddy Laboratories Ltd is good for short-term investment.
Reference: –
https://www.drreddys.com/