TITLE :- RELATIONSHIP OF NIFTY WITH REPRO INDIA LIMITED.
AUTHOR :- NITESH KHEDEKAR
INTRODUCTION :- Neuland Laboratories Limited, headquartered in Hyderabad, India, is a leading global pharmaceutical manufacturing company established in 1984. Specializing in the production of high-quality active pharmaceutical ingredients (APIs), intermediates, and custom manufacturing solutions, Neuland is renowned for its state-of-the-art facilities and commitment to innovation and quality. With a strong focus on research and development, the company delivers a diverse portfolio of products for various therapeutic areas while ensuring compliance with stringent regulatory standards. Neuland’s global presence and strategic partnerships enable it to cater to the needs of pharmaceutical companies worldwide, providing cost-effective and timely solutions while upholding its dedication to sustainability and corporate responsibility.
OBJECTIVE :- To find out BETA of REPRO INDIA LIMITED and its Significance.
DATA COLLECTION :- The Data for NIFTY 50’ and REPRO INDIA LIMITED has been taken from NSEindia.com for the period 1-02-2023 to 31-01-2024. The Data was manipulated to bring the results of Friday. Weekly Closing prices were found out. Weekly returns of Nifty and Company were calculated. Weekly returns of selected company were regressed on weekly returns of nifty50.
DATA ANALYSIS :-
Equation of regression of weekly returns of Repro India Limited (Y) on weekly returns of Nifty 50 Index (X)-
Format of Regression equation is Y = α + β(X)
weekly returns of Repro India Limited = -2.5848 -0.1989 × weekly returns of Nifty 50 Index(X)
(-0.285)
Where,
Number of Observations = 48,
R Square = 0.0018,
F = 0.081226,
P-value = 0.776922
Tstat value = -0.285
INTERPRETATION :-
• The above equation shows relationship between weekly returns of Repro India Limited Company and weekly returns of Nifty 50 Index.
• Negative sign means inverse relation, meaning if weekly returns of Nifty 50 Index rise then weekly returns of Repro India Limited Company falls and vice-versa.
If weekly returns of Nifty 50 Index rise by 1-unit, weekly returns of Repro India Limited Company will fall by -0.1989 unit and vice-versa.
Figure in bracket shows t-stat for β, P-value for which is 0.776922 which is greater than 0.05 meaning β is not statistically significant at 5% significance level.
Number of Observations are 48, R-square value is 0.0018 meaning 0.002% of weekly returns of Repro India Company Limited are explained by weekly returns of Nifty 50 Index. Balance 99.998% is error due to other variables which are not in the model.
F is 0.08122586, the P-value of which is 0.776922, which is more than 0.05 meaning overall, the model is not statistically significant at 5% significance level.
Conclusion:
As β (-0.1989) is less than 1, it is good to invest in Neuland Laboratories Limited for long term.