Author: Mayur Sarode
Roll no: 108
Introduction: Max Healthcare Institute Limited (“Max Healthcare”) is one of India’s largest healthcare organizations. Operates 19 healthcare facilities (4000+ beds) across the NCR Delhi, Haryana, Punjab, Uttarakhand and Maharashtra. Almost 85% of our bed capacity is in Metro/Tier 1 cities.
Objective: To find out beta of Max Healthcare Institute & significance
Data Collection: Data for Nifty 50 and Max Healthcare Institute has been downloaded from https://www.nseindia.com/ for the period(01-02-2023 to 31-01-2024). Weekly closing prices were found out, weekly returns were calculated. Weekly returns of Maharashtra seamless were regressed on weekly returns of Nifty 50.
Data analysis:
P value: 0.10209
t stat: -1.6681
Equation: Y=-0.98-0.05X
The above equation shows the relationship between Nifty 50 and Max Health Institute same sign means Max Healthcare shows positive impact upon when nifty gains points and vice versa, if Nifty gains 1unit point Max Healthcare Institute also rises by 0.05 units and vice versa. T stat value is β (beta), the p value for which is 0.10 which is larger than 0.05 meaning beta is statistically not significant at 5% level. N is 48, R2 is 0.00034 meaning less than 1% of change in Max Healthcare Institute price by change in Nifty balance 99.9996 is error due to other variables which are not in the model, F value is 0.015915 the p value of which is 0.10209 which is greater than 0.05 meaning overall the model is statistically not significant at 5% level.
Conclusion: Avoid Max Healthcare Institute company as this company’s fundamentals are weak. Nifty has nothing to effect this company as fundamentals are very weak.
