Author: Sahaj Soni
Introduction: Sarika Paints Ltd is a Public incorporated on 06 July 1989. It is classified as Non-govt company and is registered at Registrar of Companies, Ahmedabad. Its authorized share capital is Rs. 50,000,000 and its paid up capital is Rs. 45,500,000.
Directors of Sarika Paints Ltd are Dharmesh Arvind Shah, Gaurang Mahendrabhai Shah, Shrikant Dharamdas Sharma and Prakash Dharmdas Sharma.Sarika Paints Ltd’s Corporate Identification Number is (CIN) L24220GJ1989PLC012463 and its registration number is 12463.Its Email address is kukadiasanjay@rediffmail.com and its registered address is 56 ELLIS SHOPPING CENTREELLISBRIDGE AHMEDABAD Ahmedabad GJ 380006 IN.
Objectives: To calculate beta and find its significance.
Views & Reviews: Sarika Ltd has also collaborated with famous designers and architects to create unique color palettes and collections. This association with renowned personalities and a focus on innovation has helped company solidify its position as a leading paint brand in India.
Data Collection: Data is downloaded from https://www.nseindia.com/reports-indices-historical-index-data, https://www.nseindia.com/get-quotes/equity?symbol=KANSAINER for the period 1-10-22 to 30-09-23.
Regression Equation: Return of Sarika Paints Limited = -275.162 + 0.031479Nifty50
(4.215168912) t Stat
N = 49, R2 = 0.274329, P Value = 0.00011242, F = 17.76764895
Interpretation: In the above equation shows the relationship between Nifty 50 and Sarika Paints Limited share. Return of Sarika Paints Limited is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, Sarika Paints Limited share price falls. If Nifty 50 price rises 1 unit, Sarika Paints Limited share price will fall by 0.031479 unit & vice versa. No of observation are 49. Figure which is written in bracket 4.215168912 is t test for b. The P value for which is 0.00011242 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.274329 which means 27.43% of variances in Sarika Paints Limited share price are explained by Nifty 50 in other words 72.57% is error means 72.57% is due to the variables which are no in the model. F is 17.76764895. Overall model is statistically insignificant at 5% level.
Conclusion: Beta is 0.031479 is less than 1 it means Sarika Paints Limited is good for long term investment.
References:
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=KANSAINER