Author: Simran Singh

Introduction:

 Steel Authority of India Limited (SAIL) is a central public sector undertaking based in New Delhi, India. It is under the ownership of the Ministry of Steel, Government of India with an annual turnover of ₹105,398 crore (US$13 billion) for the fiscal year 2022-23. Incorporated on 24 January 1973, SAIL has 59,350 employees (as of 1 March 2023). With an annual production of 18.29 million metric tons, It is the largest government owned steel producer. The hot metal production capacity of the company will further increase and is expected to reach a level of 50 million tonnes per annum by 2025.

Objective: To find out Beta and its significance.

 

Views & Reviews:

General Manager in Bhilai Nagar:

Its a great place to work. Gender equality, innovation at workplace, adapting to global requirements in technology as well as proceddures for getting best results, employee involvement

transparency rae some of the key features of SAIL.

 

Operation Technician in Bokaro:

I like the job security and nps facility

 

Data Collection: The closing prices of equity were collected from NSE India Index and SAIL Company 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 mathematical relationship between SAIL’s returns (Y) and Nifty 50’s returns (X) is expressed as:

Return of SAIL = 0.0048 + 1.41 * (Return on Nifty 50)

   (t stat- 3.768548)

Number of Observations (N): 49

R-Square: 0.232051

F-Statistic: 14.20195

P-Value: 0.000458

Interpretation-

The above equation shows the relationship between return of nifty 50 index and return of SAIL. Return of SAIL being the dependent variable and Return of Nifty 50 index being the independent variable. Positive sign means if nifty 50 index rises, SAIL share also rises. If Nifty 50 rises by 1 unit or 1 rupee, SAIL share will rise by 1.41 units and vice-versa. Number of observations are 49. Figure in bracket 3.768548 is t-stat for b. The p value for this is 0.000458 which means Nifty 50 is statistically insignificant at 5 % level. R square is 0.232051.

 

 

Conclusion:

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

References:

https://en.wikipedia.org/wiki/Steel_Authority_of_India_Limited

https://www.ambitionbox.com