Title: Relationship of VIP Industries with Nifty-50
Author: Vinit. gopal. dingoliya
Introduction: VIP Industries Limited is an India-based luggage manufacturer and supplier. Its distribution network provides access to VIP luggage anywhere in India via approximately 11,000 points of sale across exclusive stores, multi-brand stores, large format retail, defines canteens and e-commerce.
Objective: To find out beta of VIP industries and its significance
Data Collection: Data was collected from NSE site for the period of 08-10-2023 to 08-10-2024. Data was manipulated to find the Friday closing price. Weekly returns of NIFTY50 and VIP industries were calculated. Weekly return of VIP industries if Y and weekly returns of NIFTY50 is X. Weekly return of VIPindustries was regressed on weekly returns of NIFTY50.
Data analysis: Weekly return of VIP industries = 0.56 +
2.21 (weekly return of NIFTY 50)
(-0.30318 T STAT)
N=46, R2= 0.002085, F=0.091916628, P VALUE= 0.763183435
INTERPRETATION: The above equation shows the relationship between Weekly Return of VIP industries and Weekly return of NIFTY 50. The plus sign before the coefficient of NIFTY50 tells that if NIFTY rises your company will also rise and vice versa.
-0.30318 is the TSTAT for the Beta and the P value for which is –0.303177552 which is less than 0.05 meaning Beta is statistically significant @ 5% level.
R2 is 0.002085 meaning 0.20 of company’sreturn are explained by NIFTY50 the balance 99.79 maybe due to fundamentals.
F is 0.09191 and the P value is 0.763183435meaning the overall model is statistically significant.
• CONCLUSION: Since Beta is -0.17511 which is less than 1, this is good for long term investment.