Author: Tejas Ghuge.
Introduction: Titan, a leading Indian lifestyle brand, has established itself as a dominant player in the fashion accessories market. The company offers a diverse range of products, including watches, jewellery and eyewear, catering to various customer segments. With a strong focus on design, quality, and innovation, Titan has gained a loyal customer base and a reputation for excellence in the industry.
Objective: To find out Beta (β) of Titan and its significance.
Data Collection:
The Data was collected of Titan and nifty 50 and downloaded from NSE website from 1st June 2023 to 30 May 2024. The data was manipulated to find Friday closing prices. The Weekly return of nifty was termed as “x” and Titan Limited was termed as “y” by using
Weekly return formula= (Yt+1-Yt)/Yt *100 and then we Y regressed on X.
Data analysis:
Regression equation:
Y= intercept of Titan + β weekly return of nifty 50
Weekly return of Titan = -0.32+0.009 weekly return of nifty 50
Y= -0.32+0.009 X
(t-stat= 0.011), N= 50, R square= 0.013, F=0.009, P value=0.43
The above equation shows the relationship between nifty50 and weekly returns of Titan. Positive sign before coefficient of weekly return of nifty 50 means there is a positive relationship if nifty rises by one unit your company will fall by 0.009 unit and if it falls by 1 unit, it rises by 0.009 unit.
This figure in bracket is t-stats as (0.011) for beta. The p value for which is 0.43 which is more than 0.05 meaning beta is not statistically significantly.
N=50, R2=0.013 which means 1.2% of Titan are explained by Nifty 50. Other 98.2% is not explained in the model.
F=0.009 and p value is 0.43, which is more than 0.05 meaning overall model is not statistically significant.
Conclusion:
As per the given data of relationship of Titan with Nifty 50, we know that beta value is less than 1 meaning company is good for investment. Investment in this company is beneficial.