Relationship of Prestige Estate Projects Limited with Nifty 50
Author: Priyesh Patil1*
1 F2 2024-26 – 021330124029, ITM Business School, Kharghar, Maharashtra, India
* Corresponding Author E-mail: priyeshpatil750@gmail.com
Introduction: Prestige Estate Projects has diversified its business model across various segments, viz Residential, Office, Retail, Hospitality, Property Management, and Warehouses with operations in more than 12 major locations in India. The company has a low return on equity of 9.13% over the last 3 years.
Objective: To find out the Beta of Prestige Estate Projects Limited and its significance.
Data Collection: Data for Nifty 50 and Prestige Estate Projects Limited was downloaded from https://www.nseindia.com/ for the period 1st April 2023 to 31st March 2024. Data was manipulated to get Friday closing prices and weekly returns were calculated using the formula (Yt+1 – Yt) / Yt * 100. Weekly returns of Prestige Estate Projects Limited were regressed on weekly returns of Nifty 50.
Data Analysis:
Weekly Returns of Prestige = -1.70 + 0.14 Weekly Returns of Nifty
N = 45, R2 = 0.001, F = 0.04, P-value = 0.84 (0.2077)
The above equation shows the relationship between Nifty 50 and Prestige Estate Projects Limited. The positive sign before 0.14 means if Nifty 50 rises, Prestige Estate Projects Limited also rises and vice versa. The coefficient of Nifty 50 has t Stat = 0.2077, the P-value of which is 0.84. It is more than 0.05 meaning Nifty 50 is not statistically significant to increase the price of Prestige. Estate Projects Limited. R2 IS 0.001 meaning 0.1% of Prestige Estate Projects Limited prices are explained by Nifty 50. 99.9% depends upon other factors like fundamentals. F is 0.04 and the P-value is 0.84 meaning it is more than 0.05 meaning the overall model is not statistically significant.
Conclusion: Prestige Estate Projects Limited is good for long term investment.
