Title: Relationship of Vipul Ltd with NIFTY50
Author: Vaishnavi Parkar
Introduction
Vipul Ltd is a Real Estate Company having its headquarter in Gurugram, Delhi. Vipul’s expanding portfolio consists of over 10 million sq. ft. of delivered properties- carefully crafted by experts through state-of-the-art technology and technical know-how. The company’s projects include a wide range of residential, commercial, retail, integrated townships, lifestyle gated communities, built in partnership with best-in-class contractors and consultants. The Group has also undertaken projects in other key cities such as Bhubaneswar, Ludhiana, Dharuhera, Bawal, and Faridabad. In the next few years, the company aims to add 4 million square feet to its portfolio.
Objective: To calculate Beta and find Significance.
Data Collection
Data for NIFTY50 AND Vipul LLTD is downloaded from NSE site for the period from 01-03-2023 to 28-02-2024. Friday closing price were calculated and weekly return of Vipul LTD were regressed on weekly return of NIFTY50.
Data Analysis
Vipul LTD share = 1.474 + 0.518 NIFTY50
The above equation shows the relationship of Vipul Ltd and Nifty 50. Positive sign means direct relationship, if weekly return of Nifty50 rises, Vipul Ltd’s returns rises. If Nifty50 rises by 1 unit, Vipul Ltd will rise by 0.518 units.
T-stat for b is 0.529 and the p value is 0.600 which is more than 0.05, meaning b is not statistically significant at 5% level, meaning price does not play a significant role for demand. The Number of observations is 47.
R-square is 0.006, meaning 0.6% of Vipul Ltd share are explained by the movement in Nifty, Balance meaning 99.4% is error due to the variables not taken in the model.
F is 0.280, the P value for which is 0.600 which is more than 0.05 so the overall model is not statistically significant.
Conclusion
As β = 0.518, is less than 1, therefore Vipul Ltd is good for long term investment.