1 F2 2024-26 – 021330024152, ITM Business School, Kharghar, Maharashtra, India
Corresponding Author E-mail: Prachirai290@gmail.com
Author: Prachi Rai
Introduction:
Polycab is a leading Indian manufacturer and supplier of wires, cables, and related electrical products. Established in 1968, the company has grown into one of the most trusted brands in the industry, offering a wide range of products including power cables, control cables, and communication cables. Polycab also manufactures electrical accessories like switches, fans, lighting, and solar solutions. With a strong presence in both domestic and international markets, the company is known for its innovation, quality, and commitment to sustainability.
Objective:
To find out beta of Polycab and its significance.
Data collection:
Data for Nifty 50 and polycab was downloaded from http:/www.nseindia.com/ 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 the formula (yt-1 – yt)/yt*100
Weekly returns of polycab was regressed on weekly returns of Nifty 50
Data Analysis:
Weekly returns of Polycab = 0.13+1.21
3.70(T-stat weekly return of Nifty 50)
N=46, R Square = 0.238, F= 13.76, P value= 0.00057
The above Equation shows the relationship between Nifty 50 and Polycab. The positive sign before 1.21means, if Nifty 50 rises, Polycab will also rise and vice-versa. The coefficient of Nifty 50 has T-stats=3.70 and the P value of which is 0.00057. It is more than 0.05 meaning Nifty 50 is not statistically significant to increase the price of Polycab. R square = 0.238 meaning 0.238% of Polycab price prices are explained by Nifty 50, 99.76% depends upon other factors like fundamentals are other factors. F is 13.760 and the P value for this 0.00057, meaning it is more than 0.05, Meaning the overall model is not statistically significant.
Conclusion:
Weekly Coefficient is 1.21, this value is more than 1 but positive means Polycab is good for short term investment.
