Title: Relationship of Pidilite with Nifty50.
Author: Priyanshi Kohli
Introduction: Pidilite Industries Limited is an Indian adhesives manufacturing company based in Andheri, Mumbai. The company is the dominant and leading adhesives company in India. Pidilite also manufactures products across verticals such as art materials and stationery; food and fabric care; car products, adhesives, and sealants; and speciality industrial products like adhesives, pigments; textile resins, leather chemicals, and construction chemicals.
Objectives: To calculate beta and find its significance.
Views & Reviews: Pidilite has an overall rating of 4.2 out of 5, based on over 606 reviews left anonymously by employees. 90% of employees would recommend working at Pidilite to a friend and 93% have a positive outlook for the business. This rating has been stable over the past 12 months.
Data collection:
Data is downloaded from https://www.nseindia.com/get-quotes/equity?symbol=PIDILITIND for 1-12-2022 to 30-11-2023 period.
Data analysis:
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SUMMARY OUTPUT |
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Regression Statistics |
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Multiple R |
0.001027826 |
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R Square |
1.06E-06 |
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Adjusted R Square |
-0.021275517 |
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Standard Error |
2.466623507 |
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Observations |
49 |
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ANOVA |
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df |
SS |
MS |
F |
Significance F |
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Regression |
1 |
0.000302095 |
0.000302095 |
4.97E-05 |
0.994407641 |
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Residual |
47 |
285.9588816 |
6.084231523 |
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Total |
48 |
285.9591837 |
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Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Lower 95.0% |
Upper 95.0% |
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|
Intercept |
0.203947368 |
0.352889578 |
0.577935368 |
0.566066583 |
-0.505974893 |
0.91386963 |
-0.505974893 |
0.91386963 |
|
X Variable 1 |
0.001644737 |
0.233414516 |
0.007046421 |
0.994407641 |
-0.467924702 |
0.471214176 |
-0.467924702 |
0.471214176 |
Regression Equation: Return of Britannia = 0.203947 + 0.001645(Return of Nifty 50)
R Square = 1.06E-06 (1.3723)
F = 4.97E-05
Interpretation: In the above equation shows the relationship between Nifty 50 and Pidilite share. Return of Pidilite is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, Pidilite share price falls. If Nifty 50 price rises 1 unit, Pidilite share price will fall by 0.001645 unit & vice versa. No of observation are 50. Figure which is written in bracket 1.3723 is t test for b. The P value for which is 0.994408 which means Nifty 50 is statistically insignificant at 5% level. R square is 1.05643 which means 105.6% of variances in Pidilite share price are explained by Nifty 50 in other words 5.6% is error means 5.6% is due to the variables which are not in the model. F is 4.9652 Overall model is statistically insignificant at 5% level.
Conclusion: Beta is 0.203947368 is less than 1 it means Pidilite is good for long term investment.
References:
https://www.nseindia.com/get-quotes/equity?symbol=PIDILITIND
