Author – Vedashree Pawar
Introduction – Voltas Limited, a part of the Tata Group, is a leading air conditioning and engineering company in India, specializing in HVAC (heating, ventilation, and air conditioning), project execution, and consumer products. In the last financial year, Voltas reported a revenue of approximately ₹13,600 crores, showcasing a solid performance driven by strong demand in the cooling segment and project execution. The company is committed to innovation and sustainability in its offerings.
Objective
To find out Beta of Voltas ltd. And its Significance
Data Collection
DATA COLLECTION
Data for Nifty 50 And Voltas ltd. was downloaded from NSEIndia.in for Current year i.e.
1-4-23 to 31-3-24
Data was manipulated to get Friday closing prices and weekly returns were calculated by
Formula ( yt-1-Yt)Yt* 100
Weekly return of Voltas ltd was regressed on Weekly return of Nifty 50
DATA ANALYSIS
Weekly return of Voltas ltd = –0.27+ .30
0.8 5(T- Stat Weekly return of Nifty 50)
N=46, R Square= .0.016, F= 0.72, P-Value=0.39
The above Equation shows the relationship between Nifty 50 and NCC ltd,
The positive sign means if Nifty 50 rises, Voltas ltd will also rise and vice-versa. The co-efficient of Nifty 50 has the T-Stat = 0.85 and P-value= 0.39, it is more than 0.05 this means Nifty 50 is not statistic7ally significant to increase prices of Voltas ltd.
R-Square= 0.016, meaning .016% of Voltas ltd share prices are explained by Nifty 50, 99.98% depends upon other factors like fundamentals.
F= 0.72 and P-value= 0.39 meaning it is more than 0.05 meaning overall model is not statistically significance
CONCLUSION
Weekly co-efficient = 0.30 less than 1 but positive, it means it is good for long term investment.