Title: Relationship of MAHARASHTRA SCOOTERS LTD With Nifty50
Author: Muskan Makhani
Introduction: Maharashtra Scooters Ltd (MSL) (subsidiary of Bajaj Holdings and Investment Ltd) is a leading manufacturer of automotive components, specializing in dies, jigs, fixtures, and die casting components for the two and three-wheeler industry. The company has a strong track record of supplying high-quality products to major automotive OEMs and is known for its innovative solutions and technical expertise. As of October 8, 2024, MSL’s share price is trading at ₹11,257.70 on the National Stock Exchange (NSE), with a market capitalization of ₹129.44 crores.
Objective: To find out Beta of Maharashtra Scooters Ltd. And its significance
Data Collection: Data for Nifty50 and Maharashtra Scooters Ltd. Was downloaded from NSE site for the period 1st April 2023 to 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 Maharashtra Scooters Ltd were regressed on weekly returns of Nifty50.
Data Analysis: Weekly return of Maharashtra Scooters Ltd = 0.55+0.95*Weekly returns of Nifty50
N=46, R2 =0.102, F=4.986, P value=0.03 T-Stat = 2.2330
The above equation shows the relationship between Nifty50 and Maharashtra Scooters Ltd. The positive sign before 0.03 means if Nifty rises Maharashtra Scooters Ltd will also rise and vice versa. The coefficient of Nifty50 has T-Stat = 2.2330 and P value of which is 0.03 which is less than 0.05 meaning Nifty50 is statistically significant to increase the prices of Maharashtra Scooters Ltd. R2 = 0.102 meaning 1.02% of Maharashtra Scooters Ltd prices are explained by Nifty50. 98.98% depends upon other factors like fundamentals. F is 4.986 and P value for this is 0.03 meaning it is less than 0.05, meaning the overall model is statistically significant.
Conclusion: The coefficient of weekly returns is 0.95 which is less than 1 and positive which means Maharashtra Scooters Ltd is good for Long Term investment.