Title: Relationship between KEI Industries with Nifty 50
Author: Kanish Jain
Introduction: KEI was founded in 1968 as a partnership corporation with a primary focus on the production of rubber cables for house wiring. Today, it has transformed itself into a global empire that provides comprehensive wire & cable solutions. Through a vast network of over 30000+ channel partners, our products cater to clients in over 55+ countries across the globe. The strength of its human resources has always been a core value for KEI Industries. Our family of 5385 employees serve in variety of capacities to efficiently provide services to our clients. Presently, we are headquartered in New Delhi, with around 38 branch offices and 23 warehouses which are spread across nation. We have been a catalyst of power for more than 50 years thanks to our devotion, tenacity, and dedication.
Objectives: To calculate beta and find its significance.
Views & Reviews: comprehensive analysis of KEI Industries, it’s evident that the company has been a remarkable long-term investment story. The company has consistently demonstrated growth in operating revenue and has impressively managed to maintain its operating margins. Notably, the Profit After Tax (PAT) margin has seen a commendable increase to 6.91%, up from 6.57% in the previous year. Furthermore, KEI Industries has made significant strides in reducing its debt to 0.05, which is quite an achievement.
Data Collection: Data is downloaded from https://www.nseindia.com/reports-indices-historical-index-data , https://www.nseindia.com/get-quotes/equity?symbol=KEI for 1-10-2022 to 30-09-2023 period.
Data Analysis:
Regression Equation: Return of KEI Industries = -0.01086 – 0.6713 (Return of Nifty 50)
R square = 0.012809 (-0.7809)
F = 0.609853
Interpretation: In the above equation shows the relationship between Nifty 50 and KEI Industries share. Return of KEI Industries is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, KEI Industries share price falls. If Nifty 50 price rises 1 unit, KEI Ind. share price will fall by 0.6713 unit & vice versa. No of observation are 49. Figure which is written in bracket -0.7809 is t test for b. The P value for which is 0.4387 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.012809 which means 1.28% of variances in KEI Ind. share price are explained by Nifty 50 in other words 98.72% is error means 98.72% is due to the variables which are no in the model. F is 0.6098. Overall model is statistically insignificant at 5% level.
Conclusion: Beta is -0.01086 is less than 1 it means KEI Ind is good for long term investment.
Reference:
https://tradebrains.in/fundamental-analysis-of-kei-industries/ , https://www.nseindia.com/reports-indices-historical-index-data , https://www.nseindia.com/get-quotes/equity?symbol=KEI