Title: TVS Motors
Author: Tejasva Agrawal
Introduction: TVS Motor Company (commonly known as TVS) is an Indian multinational motorcycle manufacturer headquartered in Chennai. It is the third-largest motorcycle company in India by revenue. The company has annual sales of three million units and an annual production capacity of over four million vehicles. TVS Motor Company is also the second largest two-wheeler exporter in India with exports to over 60 countries.
Objective: To find out Beta of TVS MOTORS and its significance
Data Collection: Data for Nifty50 and TVS Motors downloaded from NSE website, further period 1st April 2023 and 31st March 2024. Data was manipulated to get Friday closing prices and weekly returns were calculated by the formula: (Yt-1 – YT)/Yt*100 weekly returns of Apollo was regressed on weekly returns of Nifty50.
Data Analysis: Weekly return of Apollo Tyres = (-0.93) + (-0.30)
N = 49, R2 = 0.016, t stat = (-0.87), F = 0.75, P-value = 0.39
The above equation shows the relationship between Niffty50 & TVS Motors. The negative sign before 0.30 means if Nifty raises Apollo Tyres decrease & vice versa. The Coefficient of Nifty50 has t stat = (-0.87) and the P-value of which is 0.39 meaning Nifty50 is statistically not significant. To increase the prices of TVS Motors, R2 is 0.016 meaning 16% of TVS Motors prices are explained by Nifty50. % dependents upon other factors like fundamentals are other factors. F is 0.75 and the P-value is 0.39 meaning it is more than 0.05, which means that the overall model is statistically not significant.
Conclusion: Since, the coefficient (-0.30) is negative, avoid this company for further investment.