Author: – Abhijeet Niwas Shewale (021330124030)
Introduction: – Aditya Birla Capital saw a positive performance driven by strong growth in its lending and asset management segments. The company focused on expanding its retail loan portfolio, which contributed to improved revenue. Despite facing some market volatility, investor sentiment remained optimistic due to its diversified business model and strategic initiatives. Overall, the stock reflected a steady upward trend, indicating confidence in its long-term growth prospects.
Objective: – To find out Beta of Aditya Birla Capital and its significance.
Data Collection: – Data of nifty 50 & Aditya Birla Capital is downloaded from NSE official website for the period of 1st May 2023 to 30th April 2024. Data was manipulated for Friday closing prices. Weekly returns of Nifty 50 represented as “X” and Aditya Birla Capital is taken as “Y”. Weekly returns of Aditya Birla Capital were regressed on weekly return of Nifty 50.
Data Analysis: –
Weekly return of Aditya Birla Capital = 0.19 + 1.48 * weekly returns of Nifty 50
(3.107)
N= 47, R square = 0. 177, F = 9.656, P value = 0.003
Above equation shows the relations between weekly returns of Aditya Birla Capital and weekly returns of Nifty 50. The Plus sign before the coefficient of Nifty 50 tells that, if nifty rises, Aditya Birla Capital will also rise and vice versa.
The coefficient of Nifty 50 has T stat = 3.107& P value of which is 0.003, it is less than 0.05 which means it is statically significant at 5% level.
R Square is 0.177 meaning 17.7% of Aditya Birla Capital price are explained by nifty 50 & 82.3 % depends upon factors like fundamentals & other factors.
F is 9.656 & P value for this is 0.003 meaning it is less than 0.05, means overall model is statically significant.
Conclusion: –
Beta value is 1.48 which is more than 1 & positive, means it is good for short term investment if nifty is at bottom.