Title: Relationship of Ramco Systems Ltd and Nifty50
Author: Ritika Girdhani
F-2:021330024281 ,ITM Business School, Navi Mumbai
Introduction: Ramco Systems Ltd, founded in 1997, is an Indian software company specializing in cloud-based enterprise solutions like ERP, HCM, and aviation maintenance. Initially part of the Ramco Group, it later became a standalone entity. The company has a global presence, serving clients across industries with a focus on AI and automation-driven innovations.
Object: To find out Beta of Ramco Systems Ltd and its Significance.
Data Collection: Data for Nifty 50 and Ramco Systems Ltd was downloaded from NSE site from 1st April,2023 to 31st March,2024.Data was manipulated to get Friday closing price ,weekly returns were calculated by using formula Yt-1– Yt / Yt*100 weekly returns of Ramco System Ltd regression on weekly returns on Nifty50.
Data Analysis:
Equation:
Weekly return of Ramco System Ltd= -187.87+0.02 weekly return of Nifty50
T Stat (8.0614)
N=47,R2=0.590,F=64.987,P Value=0.00
Data Interpretation:
The above equation shows the relationship between Nifty50 and Ramco Systems Ltd .The positive sign before 0.02 means if Nifty50 rises, Ramco systems ltd also rises and vice-versa. The coefficient of nifty 50 has
T Stat=8.0614 and the p value which is 0.00 it is less than 0.05 meaning Nifty 50 is statistically significant to increase the price of Ramco system ltd.
R2=0.590 meaning 59% of Ramco Systems Ltd prices are explained by Nifty 50 which is 41% depends upon other factors like fundamentals. F is 64.987 and the P Value is 0.00 meaning it is less than 0.05 means the overall model is statistically significant.
Conclusion: It is less than one and positive so Ramco Systems Ltd is good for long term investment.