AUTHOR:- AARSH VERMA (021330024006)
Introduction:-
Aditya Birla Capital Ltd. is a leading financial services company in India, part of the Aditya Birla Group, one of the largest conglomerates in the country. Established in 2015, the company offers a diverse range of financial solutions, including asset management, insurance, lending, and wealth management.
With a strong focus on innovation and customer-centric services, Aditya Birla Capital aims to empower individuals and businesses to achieve their financial goals. The company is known for its robust risk management practices and a commitment to sustainable growth. It serves millions of customers across various segments, leveraging technology to enhance its service delivery and operational efficiency.
Objective:-
To find out the Beta(β) of Aditya Birla Capital Ltd. and it’s significance
Data Collection:-
The data was collected by taking the weekly return of National Stock Exchange (NSE), with the Friday closing of Nifty-50 and Aditya Birla Capital Ltd.
Weekly return of NIFTY-50 was taken as (X) in terms of company (Aditya Birla Capital ltd.) as Y is taken. Y was regressed on X
DATA ANALYSIS :-
Weekly return of the company (-0.49+0.03)= -0.46
T-stat of the weekly return-> 0.58
Observation -> 46
R2 -> 0.007
F -value -> 0.34
P -value -> 0.056
The above equation shows the relationship between Nifty-50 and Aditya Birla capital ltd. is positive sign before the coefficient of Nifty-50 tells us that there is a positive relationship if, nifty rises by 1 unit or the company rises by 0.90 points and vice versa.
Figure in bracket is t-stat for β beta and P – value (ie. 0.056), which is greater than 0.05 (>0.05), stating that model is not statistically significant.
R2 is 0.007 which means only 7% of weekly return of the company are explained by NIFTY-50
F-value is 0.34 and P – value for that is 0.056, stating that overall model is statistically significant.
CONCLUSION:-
As the β of Aditya Birla Capital ltd. is 0.58, i.e. less than 1 but positive (+ ve) it would be advisable to invest for longterm purpose only.