Title: – Relationship of Rajratan Global Wire Limited. with Nifty 50
Author: – Rajratan Madhukar Bhokare (MMS First Year, Roll No. 68), Kohinoor Business School, Kurla.
Introduction: – Rajratan Global Ltd is an Indian company primarily engaged in manufacturing and supplying high-quality steel wires and wires products for various industries such as automotive, construction, and agriculture. Established in 1989, the company has grown to become a leading player in the wire industry, known for its innovation, quality, and customer-centric approach. They offer a diverse range of products including tire bead wire, spring steel wire, rope wire, and alloy steel wire, among others, catering to both domestic and international markets.
Objective:-To Calculate Beta for Rajratan Global Wire Limited and find out its significance.
Views and Reviews: –
Rajratan Global Wire Ltd. Company History and Annual Growth Details The Company was incorporated on September 9, 1988 with 400/o NRI investment to put up a steel wire drawing unit in the centrally declared backward area of Pithampur (Dist. Dhar), near Indore. The project was conceived in late 1989 and the Land at Pithampur was acquired from Madhya Pradesh Audyogik Kendra Vikas Nigam in April 1990 only. The Plant & machinery to manufacture High Carbon (H.C.) wires was acquired by January 1991 and the commercial production commenced in March 1991. On seeing the demand for high carbon Prestressed Concrete (PC) wires, the promoters decided to put up a unit to manufacture different types of PC wires and strands.The total cost of the PC Wire Project was Rs. 178 lacs which was financed by M.P.A.V.N. and M.P.F.C. There have been no labour disputes/litigations/defaults etc. in the company since its incorporation.
Data Collection: – Data is taken from 01-02-2023 to 31-01-2024. It has been downloaded from the NSE website, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Rajratan Global Wire Limited (i.e. Y) were calculated.
Data Analysis: – Equation “^Y=0.5623-1.0535(X)”
(tstat= 2.7523)
n = 50, R2 = 0.1363, F = 7.5749
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Rajratan Global Wire Limited (Y) the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 1.0535, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. 2.7523 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.1363 means 13.63% of y is explained by x, balance 86.37% is error due to the variables which are not in the model. As the calculated value of F =7.5749 is more than the tabulated F (F 0.05,1DF,49DF=4.043) So, the overall model is statistically significant at the 5% level.
Conclusion:
If β<1, Rajratan Global wire Limited share is good for long term investment.
Reference:
https://www.rajratan.co.in/
