TITLE: Relationship of Navneet Education Limited with Nifty-50.
AUTHOR: Navneet Kour
INTRODUCTION: Navneet Education Limited is an Indian company that is in the business of educational and children book publishing, scholastic stationery and non-paper stationery products.
The share of Navneet Education Limited is currently being traded at Rs. 141.50.
The opening price of the share on 10th October 2024 was Rs. 144.13.
The highest price it went to on the same date was Rs. 145.09 whereas the lowest price was Rs.137.75.
The Price Earning Ratio is on the same date is 3.96. Market Capitalization amounts at 3.20K Crores.
OBJECTIVE: To find out Beta of Navneet Education Limited and its significance.
DATA COLLECTION:
- Data from 1st May 2023 to 30th April 2024 was downloaded from NSE site.
- Data was manipulated to get only Friday closing prices.
- Weekly returns were calculated.
- Weekly returns of Nifty-50 were taken as X.
- Weekly returns of Navneet Education Limited were taken as Y.
- Weekly returns of Navneet Education Limited were regressed on weekly returns Nifty-50.
DATA ANALYSIS:
Weekly returns of Navneet Education Limited = -0.15+0.70 = 0.55
Weekly returns of Nifty-50 = (1.467)
Number of observations = 48
R Square = 0.044
F = 2.14
P value= 0.15
INTERPRETATION:
- The above equation depicts the relationship between weekly returns of Navneet Education Limited and Nifty-50.
- The +ve sign before the coefficient of Nifty-50 tells that if Nifty rises Navneet Education Limited will also rise, and vice versa.
- If Nifty rises by 1 unit Navneet Education Limited will rise by 0.7 units.
- The figure in the bracket (1.467) is the T-stat for Beta and the P value for which is 0.15 which is greater than 0.05 which means Beta is not statistically significant at 5% level and vice versa.
- R Square is 0.044 which means 4.4% of Navneet Education Limited are explained by Nifty-50. The balance 95.6% is due to fundamentals.
- F is 2.14 and the P value is 0.15 which is greater than 0.05 meaning that overall model is not statistically significant.
CONCLUSION:
Since, Beta is greater than 1, it means Nifty is at low. Therefore, it will be good if short term investments are made in Navneet Education Limited.
