Author: Aman Mahendra Jain (021330024047).
Introduction: Apollo Hospitals Enterprise Limited is India’s largest private healthcare provider, renowned for its quality care and extensive network. Founded in 1983, the company has grown to offer a wide range of services, including hospitals, pharmacies, clinics, and health insurance. Apollo Hospitals is committed to providing affordable and accessible healthcare to patients across the country.
Objective: To Find out beta and significance of Apollo Hospitals Enterprise Limited.
Data Collection: Data of Apollo Hospitals Enterprise Limited and Nifty 50 is taken from 01/05/23 to 30/04/24 downloaded from NSE. The data is manipulated to get Friday closing prices. Weekly return of Nifty 50 is taken as (x) and Apollo Hospitals Enterprises Limited is calculated. Weekly return of Apollo Hospitals Enterprise Limited was regressed on weekly return of Nifty 50.
Data Analysis: Weekly return of Apollo Hospitals Enterprise Limited-
0.28 + 0.90 weekly return of Nifty 50.
t Stat= (2.56), N= 48, R Square-0.12, F= 6.58, P-value= 0.01.
Interpretation: The above equation depicts the relationship between weekly returns of Apollo Hospitals Enterprise Limited and weekly return of Nifty 50. The (+) sign before the coefficient of Nifty 50 tells that if Nifty rises, Apollo Hospitals Enterprise Limited will also rise and vice versa. If Nifty rises one unit, Apollo Hospitals Enterprise Limited will also rise by 0.90 unit. Figure in the bracket is t Stat for beta and the P-value for which is 0.01 which is less than 0.05. Meaning, beta is statistically significant at 5% level. R Square is 0.12. Meaning, 12% of company return are explained by Nifty 50. The balance 88% maybe due to fundamentals. F is 6.58 and the P-value is 0.01. Meaning, overall model is statistically significant.
Conclusion: The beta is less than 1. Meaning, invest for long term.