Title: Relationship of Aditya Birla with Nifty50.
Author: Amogh Agnihotri (F3 Batch)
Intro: The roots of the Aditya Birla Group date back to the 19th century in the picturesque town of Pilani set amidst the Rajasthan desert. It was here that Seth Shiv Narayan Birla started trading in cotton, laying the foundation for the House of Birla.
Objective: To calculate Beta and its significance.
Views and Reviews: Globally, last two years were most difficult years for the fashion retail industry. The disruption caused by the first wave of COVID was further exacerbated by an even stronger 2nd wave in 2021. This resulted in massive value destruction across the entire apparel industry. And yet, your Company has emerged stronger, by remaining a step ahead with strategic technology interventions in driving sales and aggressive expansion to cater to growing demand across the country. Your Company’s revenue for FY22 stood at ` 8,136 Cr, with a 55% growth as compared to last year’s ` 5,249 Cr. It recorded an EBIDTA margin of 14.8 percent, despite the continuing headwinds caused by the pandemic. In FY 22, your Company also announced a tie-up with one of India’s youngest next-gen designer Masaba Gupta. In line with expanding the portfolio to cover new emerging segments, Your Company made a bold foray into the growing sportswear space through signing up for acquiring the India business of Iconic global sportswear brand, Reebok.
Data collection: Nifty and ADITYA BIRLA CAPITAL closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return is Aditya Birla capital 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= 0.848101302 + 0.134554495 x
Interpretation:
The above equation shows the relation between Nifty50 and Aditya Birla Group.
Return of Aditya Birla is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of Aditya Birla will also rise by 0.134 and vice versa.
Number of observations are 49.
The p-value for which is 0.76.
R square is 0.0019 which means 0.19% of variance in Aditya Birla are explained by Nifty.
F is 0.09, p-value for this is 0.76 which means model is statistically significant at 1%
Conclusion: Beta is 0.13 which is less than 1, it means that Aditya Birla is good for long term investments.
Reference: https://nseindia.com