Author: Swapnil Lagade
Introduction:
Siyaram Silk Mills Limited, also known as Siyaram’s and as SSML, is an Indian blended fabric and garment-manufacturer with an associated chain of retail outlets and branded showrooms and an online store. Siyaram Silk Mills Ltd (SSM) is part of the Siyaram Poddar Group, which also comprises Balkrishna Industries Ltd and Govind Rubber Ltd, all listed companies at Bombay Stock Exchange. SSM is a small cap company with a market cap of ₹936.75 crores. Siyaram’s manufactures and sells fabrics, ready-made men’s and women’s apparel, home furnishing, and yarns.
Objective:
To find out Beta of Siyaram Silk Mills Ltd and his significance.
Data Collection:
Data of Siyaram Silk Mills Limited and Nifty 50 was downloaded from NSE Website for the period 1st May 2023 to 30th April 2024 and is manipulated to get Friday closing price. Weekly return of Nifty 50 and Siyaram Silk Mills Limited were calculated. Weekly return of Siyaram Silk Mills Ltd (Y) was regressed on Weekly return of Nifty 50 (X).
Data Analysis:
Weekly Return of Siyaram Silk Mills Ltd = 0.25 + 0.12 Weekly Return of Nifty 50
(0.28)
N = 48, R2 =0.002, F = 0.08, P value = 0.079
Interpretation:
The above equation depicts that relationship between weekly return of Siyaram Silk Mills Ltd and weekly return of Nifty 50. The “+” sign before the coefficient of Nifty 50 tells that if Nifty 50 rises, then Siyaram Silk Mills Ltd will also rice and vice versa. If Nifty 50 rises by 1 unit, then Siyaram Silk Mills Ltd will rise by 0.9 units. The figure in the bracket is T Stats for Beta and the P Value for which is 0.079 which is more than 0.05 meaning beta is statistically insignificant at 5% level. R2 is 0.002 meaning 0.2% of Siyaram Silk Mills Ltd return and explained by Nifty 50. The balance 99.8 % maybe due to fundamentals. F is 0.08 and the P value is 0.079 meaning overall model is statistically significant.
Conclusion:
As Beta for Siyaram Silk Mills Ltd is 0.12 which is less than 1. Therefore, it is advisable to invest for long term.