TITLE: RELATIONSHIP OF NILKAMAL LIMITED WITH NIFTY 50
AUTHOR: NILESH KUMAR
BATCH F3 (FINANCE)
ITM BUSINESS SCHOOL
INTRODUCTION: Nilkamal Ltd., founded in 1985, is a Small Cap business (with a market capitalization of Rs 3,339.88 Crore) in the Plastics sector. For the fiscal year ending 31-Mar-2023, Nilkamal Ltd.’s primary products/revenue segments include Plastic Articles, Sales of Services, Other Operating Revenue, and Scrap. Nilkamal Limited, headquartered in Mumbai, Maharashtra, India, is Asia’s largest plastic processor of moulded items. It is also the world’s largest producer of moulded furniture. Plastic Furniture, Material Handling Crates and Bins, Baby Table, Centre Table, Dining Table, Planter, Rack, Stool, Industrial Pallets, Waste Bins, Insulated Crates, and more items are available under the Furniture category.
NILKAMAL currently trades at Rs 2,231.8 per share.
OBJECTIVE: To calculate beta and find its significance.
VIEWS AND REVIEWS: The Consolidated revenue during the FY23 stood at 3,130 crores as against 2,730 crores of previous year resulting into growth of 15%, whereas the PAT stood at around 134 crore as against around 83 crores of FY22.
DATA COLLECTION: Nifty and NILKAMAL LTD. closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return of NILKAMAL 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 = -2612.56017+ 0.256686969X
- of Observations = 49
R-square = 0.723646878
F-static = 125.6908186
P-value = 0.0000000000
INTERPRETATION: The above equation shows the relation between Nifty50 and NILKAMAL Ltd. Return of NILKAMAL 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 NILKAMAL Ltd will also less by 0.000095217 and vice-versa.
Number of observations are 49.
11.21119167 is the t-stat for Y, the p-value for which is 0.0000000000
R square is 0.723646878 which means 0% of variances in NILKAMAL Ltd. are explained by Nifty. F is 125.6908186, p-value for this 0.0000000000
which means model is statistically significant at 1% level.
CONCLUSION: Beta is -2612.56017 which is less than 1, it means that NILKAMAL Ltd.is good for long term investment.
REFERENCES:
https://www.niftyindices.com/reports/historical-data
https://www.nseindia.com/get-quotes/equity?symbol=NILKAMAL