Title: PIRAMAL PHARMA LTD WITH NIFTY 50
Author: PRANJAL BYAWAT
Introduction: Piramal Pharma Limited (PPL) offers a portfolio of differentiated products and services through its 17 global development and manufacturing facilities and a global distribution network in over 100 countries. Piramal Pharma Limited includes Piramal Pharma Solutions (PPS), an integrated Contract Development and Manufacturing Organization, Piramal Critical Care (PCC), a Complex Hospital Generics business; and the India Consumer Healthcare business, selling over-the-counter products.
Objective: To find out Beta of Piramal Pharma Limited (PPL) and its significant.
Data Collection: Data for Nifty 50 and PIRAMAL PHARMA LTD was downloaded from NSE site for the period 01st 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 PIRAMAL PHARMA LTD was regressed on weekly returns of Nifty 50.
Data Analysis: Weekly return of PIRAMAL PHARMA LTD = -0.93+ (-0.57)
N = 45, R2 = 0.0185, t stat = (-1.0828), F = 0.8330, P-value = 0.2847
The above equation shows the relationship between Niffty50 & Piramal Pharma Limited (PPL). The positive sign before 0.83 means if Nifty decrease of PIRAMAL PHARMA LTD raises & vice versa. The Coefficient of Nifty50 has t stat = (-1.082) & the P value of which is 0.2847 meaning Nifty50 is not statistically significant. To increase the prices of of PIRAMAL PHARMA LTD, R2 is 0.0185 meaning 1.85% of Piramal Pharma Limited (PPL) prices are explained by Nifty50. 85% dependents upon other factors like fundamentals are other factors. F is 0.8645 & the P value of this is 0.2847 meaning it is less than 0.05 meaning the overall model is statistically significant.
Conclusion:
-0.57 coefficient is negative , so Piramal Pharma Limited (PPL) is not good for long term investment.