Title: Relationship of Supreme industries Limited with Nifty50.
Author: Sahil Vivek Thakur
Introduction: Supreme Industries Ltd is a prominent Indian company engaged in the manufacturing and distribution of plastic products. It is involved in producing a wide range of plastic products, including pipes, fittings, storage tanks, packaging materials, and other industrial and consumer products. The company serves various sectors, including agriculture, infrastructure, construction, and consumer goods.
In the initial years, the company started as a small unit producing refractory and later expanded its operations into the manufacturing of plastic products.
1958: The company began manufacturing PVC pipes, which marked its entry into the plastics industry.
1970s-1980s: Supreme Industries expanded its product portfolio to include various plastic products such as storage tanks, molded furniture, industrial components, and more.
1990s: The company continued to diversify its product range and strengthen its position in the plastic industry. It introduced innovative products and technologies, contributing to its growth.
2000s: Supreme Industries became one of the leading players in the plastic industry in India. It gained recognition for its quality products and diverse applications.
Objectives: To calculate beta and find its significance.
Views & Reviews:
supreme has TTM P/E ratio 50.94 as compared to the sector P/E of 17.50. it would benefit from demand across whole world and according to analyst it is a high strong buying stock with good return.
Data collection: Nifty and Supreme closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return of REC Limited 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=1.34232+0.5044x
Interpretation:
The above equation shows the relation between Nifty50 and Supreme industries ltd
Return of supreme industries Limited is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of supreme industries Limited will also rise by 0.0222 and vice-versa.
Number of observations are 50.
1.0455 is the t-stat for Y, the p-value for which is 0.3009
R square is 0.0222 which means 0.2% of variances in supreme industries Limited are explained by Nifty.
F is 1.09322, p-value for this is 03009 which means model is statistically significant at 1% level.
Conclusion: Beta is -1.34232 which is less than 1, it means that supreme industries limited is good for long term investment.
Reference: https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=SUPREMEIND