Title: Relationship of Delhivery Ltd with NIFTY50
Author: Dipak Shantaram Radhe
Introduction
We are India’s largest fully integrated logistics provider. We aim to build an operating system for
commerce, through a combination of world-class infrastructure, logistics operations of the highest
quality and cutting-edge engineering and technology capabilities.
Since its inception in 2011, our team has successfully fulfilled over 2 billion orders across India. We
have built a nationwide network with a presence in every state, servicing over 18,600 pin codes. 24
automated sort centres, 94 gateways, 2880 direct delivery centres, and a team of over 57,000 people
make it possible for us to deliver 24 hours a day, 7 days a week, 365 days a year.
Objective: To calculate Beta and find the Significance of Delhivery Ltd.
Data Collection
Data for NIFTY50 AND Delhivery LTD 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 Delhivery LTD were
regressed on weekly returns of NIFTY50.
Data Analysis
delivery Ltd share Y= -0.55006+0.112706X NIFTY50
The above equation shows the relationship between Delhivery Ltd. and Nifty 50. A positive sign means a direct
relationship, if the weekly return of Nifty50 rises, Delhivery Ltd. returns rise. If Nifty50 rises by 1 unit,
Delhivery Ltd. will rise by 0.1127 units.
The t-stat for b is 0.231 and the p-value is 0.817 which is more than 0.05, meaning b is not statistically
significant at the 5% level, meaning price does not play a significant role in demand. The Number of
observations is 48.
R-square is 0.00116831, meaning 0.116830954% of Delhivery Ltd. shares are explained by the
movement in Nifty, Balance meaning 99.88316905% is an error due to the variables not taken in the
model.
F is 0.0538051, the P value for which is 0.817 which is more than 0.05 so the overall model is not
statistically significant.
Conclusion
As β = 0.11270572, is less than 1, therefore Delhivery Ltd is good for long-term investment.
