Title: Relationship of Sagar cement Ltd with NIFTY50
Author: Sagar Sudhakar Dandge
Introduction
Sagar Cements Limited (SCL) is one of India’s leading cement manufacturer with an installed production capacity of 10.85 MTPA. For over four decades, we have been committed to creating lasting stakeholder value while maintaining a sustainable growth outlook with our robust foundation and a steady growth focus.
Sagar cement limited
Objective: To calculate Beta and find Significance of Sagar cement limited
Ltd.
Data Collection
Data for NIFTY50 AND Sagar cement limited is downloaded from the NSE site for the period from 01-03-2023 to 28-02-2024. Friday closing prices were calculated and weekly returns of Sagar cement limited
were regressed on weekly returns of NIFTY50.
Data Analysis
Sagar cement limited share Y=-1.89.57+0.0165X NIFTY50
The above equation shows the relationship of Sagar cement limited and Nifty 50. Positive sign means direct relationship, if weekly return of Nifty50 rises, Sagar cement Ltd. returns rises. If Nifty50 rises by 1 unit, , Sagar cement Ltd. will rise by 0.0165 units.
T-stat for b is 10.4551 and the p value is 9.69E-14 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 48.
R-square is 0 .703, meaning70.38 % of Sagar cement Ltd. shares are explained by the movement in Nifty, Balance meaning 69.73% is error due to the variables not taken in the model.
F is 0.703, the P value for which is 9.69 which is more than 0.05 so the overall model is not statistically significant.
Conclusion
As β = 0.016, is less than 1, therefore Delivery Ltd is good for long term investment.
