Title– Relationship between Nifty 50 with Aditya Birla Capital
Author- Anshul Agarwal (21230023221) (Fintech)
Introduction –
Aditya Birla Capital Limited (ABCL) is the holding company for the financial services businesses of the Aditya Birla Group. With subsidiaries/JVs that have a strong presence across Protecting, Investing, and Financing solutions, ABCL is a financial solutions group that caters to the diverse needs of its customers across their life cycle. Powered by about 47,000 employees, the businesses of ABCL have a nationwide reach with over 1,462 branches, more than 2,00,000 agents/channel partners, and several bank partners.
As of December 31, 2023, Aditya Birla Capital Limited manages aggregate assets under management of over Rs. 4 lakh Crore with a consolidated lending book of about Rs 1.15 lakh Crore through its subsidiaries and joint ventures.
Aditya Birla Capital Limited is a part of the Aditya Birla Group, which is in the league of Fortune 500. Anchored by an extraordinary force of over 187,000 employees of 100 nationalities, the Group is built on a strong foundation of stakeholder value creation. With over seven decades of responsible business practices, our businesses have grown into global powerhouses in a wide range of sectors – metals, pulp and fiber, chemicals, textiles, carbon black, telecom, cement, financial services, fashion retail, and renewable energy. Today, over 50% of Group revenues flow from overseas operations that span 40 countries in North and South America, Africa, Asia, and Europe.
Objective –
To calculate the beta of Aditya Birla Capital Ltd and its significance.
Views & Reviews-
Vishakha Mulye
(CEO Aditya Birla Capital)
It is my honor to present the 16th Annual Report of your Company. I am humbled to write my first letter to you, our valued shareholders, as CEO of Aditya Birla Capital, a Company, that is uniquely positioned to capitalize on the vast opportunities, available in the financial services space in India. Aditya Birla Capital Limited or “ABCL” or ‘your Company’, is a leading, diversified financial services group, that operates in several businesses, including non-banking finance, housing finance, life insurance, standalone health insurance, asset management, stock and securities broking, and other financial services such as wealth services and asset reconstruction. Backed by the unique architecture and strong parentage, your Company embarked on a growth journey to piece together the various building blocks of the franchise and leveraged the power of data, digital, and technology (DDT) to build accelerated, risk-calibrated growth momentum and improved profitability for its stakeholders in the long-term. It envisioned the ‘One ABC One P&L’ approach, to focus on a business strategy that revolves around the three levels of One Customer, One Experience, and One Team.
Data Collection –
The data is downloaded from the 1st of February 2023 to the 31st of January 2024 for Nifty 50 and Aditya Birla Capital.
Nifty 50 is the independent variable
Aditya Birla is the dependent variable
ANOVA TABLE –
Data Analysis –
The equation for the data is –
X- Nifty 50; Y- Aditya Birla Capital Ltd.
X = 0.053711 + 1.09104 Y
N= 48, R Square= 0.17989167, F value= 10.09015094
The above equation shows the relationship between Nifty 50 return and Aditya Birla capital’s stock return. Where Nifty 50 is the independent variable and Aditya Birla capital’s is the dependent variable. The positive sign in the equation shows that there is a direct relationship. If, the return of Nifty 50 increases then the return of Aditya Birla capital will also increase and vice versa.
The number of observations is 48.
R-square is 0.17989167 which means 18% of Aditya Birla capital is explained by nifty 50 82% are errors that are not in the model.
Figures and brackets are the T stats is R-square. The P-value of this is 0.002662 it is less than 0.5 which means nifty 50 is statistically significant at the 5 % level.
F is 10.09015094 and the P-value is 0.002662115 which is also less than 0.5 which means the overall model is statistically significant.
Conclusion –
The beta is more than 1 for the given model which means that we should invest for the short-term period.
Reference –
https://finance.yahoo.com/quote/%5ENSEI/history/
