Title: Suzlon ltd with Nifty-50
Author: Sayed Arsh Sharif
Introduction: Suzlon Group is among the world’s leading renewable energy solutions provider that is revolutionising and redefining the way sustainable energy sources are harnessed across the world. Presence in 17 countries across Asia, Australia, Europe, Africa and the Americas, Suzlon is powering a greener tomorrow with its strong competencies in renewable energy systems. Suzlon’s extensive range of robust and reliable products backed by its cutting-edge R&D and more than two decades of expertise are designed to ensure optimum performance, higher yields and maximum return on investment for the customers.
Objective: To find out beta of Suzlon Ltd 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 Suzlon ltd were calculated. Weekly return of VIP industries if Y and weekly returns of NIFTY50 is X. Weekly return of VIP industries was regressed on weekly returns of NIFTY50.
Data analysis: Weekly return of Suzlon ltd = 0.56 +
2.21 (weekly return of NIFTY 50)
(-0.30318 T STAT)
N=46, R2= 0.002085, F= 0.091916628, P VALUE= 0.4175
INTERPRETATION: The above equation shows the relationship between Weekly Return of Suzlon Ltd 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’s return are explained by NIFTY50 the balance 99.79 maybe due to fundamentals.
F is 0.09191 and the P value is 0.475 meaning the overall model is statistically significant.
- CONCLUSION: Since Beta is -0.145 which is less than 1, this is good for long term investment.