Title: Relationship of Nilkamal Ltd. with Nifty50
Author:– Niharika Singh
Introduction: Nilkamal has to its credit, of being the world’s largest producer of moulded plastic furniture. Brand Nilkamal has become a household name owing to its quality and reach of moulded furniture business across the deepest pockets of the country. The company has gradually ventured into a multiplicity of businesses that pan across Material Handling Solutions, Ready Furniture, @Home – the brand’s lifestyle home solutions retail chain, Nilkamal Mattrezzz, and Bubbleguard – a material protection solution.
Objectives: To calculate beta and find its significance.
Views & reviews: Nilkamal ltd. share price has been relatively stable in recent years, although it has faced some fluctuations due to market conditions. You can find detailed financial reports and analyst reviews on their website or financial news platforms.
Data Collection: Data is downloaded from.
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=NILKAMAL
Data Analysis:
Regression Equation: Return of Nilkamal Ltd. =
Y= A + B *X
Y= -0.411 + 0.423 * X
R Square = 0.00119505 P value = 0.310694881
F = 1.050750128
N=48
Interpretation: The above equation shows the relationship between NIFTY 50 and NilkamalLtd. share. Return of Nilkamal Ltd. is dependent variable and Return of NIFTY 50 is independent variable. Here the value is positive means there is a direct relationship. That means when the Nifty50 rise Share price also rise and when the Nifty50 decrease the share price decreases. If NIFTY 50 price rises by 1 unit, Nilkamal Ltd. share price will rise by0.00119505 unit & vice versa. No. of observations are 48. We know that in regression we determine the relationship between the two variables from P value. When the P value is more than 0.05 Null Hypothesis and the P value less than 0.05 is Alternate Hypothesis. Null hypothesis means there is no relationship between the two variable and Alternate Hypothesis means there is relationship between the two variables. Here the P value for which is 0.8156 which means Null Hypothesis. Here the standard error is 3.484. This happened due to some other condition, or we can say for other variable which are not in this model. Here the F value is 0.05503 and the P value is 0.8156 which means overall model is statically significant at 5% significant level.
Conclusion: After doing all the analysis we conclude that our B value is 0.423, it would mean that for every one unit increases in EPS, the stock price is estimated to increase by 0.423 units, assuming all other factors remain constant. So if you want to go for short term investment it’s a good option for you.
References: https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=NILKAMAL