AUTHOR: NIDHI ANIL DOSHI.(021330124005)
INTRODUCTION: NESCO Limited, also known as the National Engineering Company, is a prominent Indian company involved in various sectors, including engineering, manufacturing, and real estate. Established in 1960, NESCO has diversified its operations over the years and is particularly known for its exhibition and convention centers, as well as its manufacturing of high-quality electrical equipment.
NESCO HAS A MARKET CAPITALIZATION OF 6551 CRORES AND CUREENT SHARE PRICE OF NESCO RANGE BETWEEN 909.65 TO 919.85 PER SHARE.CURRENT DIVIDEND YIELD OF NESCO LTD IS 1.13%.
OBJECTIVE:TO FIND OUT BETA OF NESCO LTD AND ITS SIGNIFICANCE.
DATA COLLECTION:DATA FOR NIFTY 50 AND NESCO LTD WAS DOWNLOADED FROM NSE WEBSITE,FOR THE PERIOD FROM 1ST MAY 2023 TO 30TH APRIL 2024.DATA WAS MANIPULATED TO GET FRIDAY CLOSING PRICES AND WEEKLY RETURNS WERE CALCULATED BY THE FORMULA . WEEKLY RETURNS OF NIFTY 50 ARE REPRESENTED AS X AND OF MY COMPANY ARE REPRESENTED AS Y. WEEKLY RETURNS OF MY COMPANY WERE REGRESSED ON WEEKLY RETURNS OF NIFTY 50.
DATA ANALYSIS: WEEKLY RETURNS OF NESCO =-0.30- 0.12. WEEKLY RETURNS OF NIFTY 50 (0.29 ).
N=48 R2=0.185 F=0.085 P=0.0077
INTERPRETATION:THE ABOVE EQUATION SHOWS THE RELATIONSHIP BETWEEN NIFTY 50 AND NESCO LTD.THE POSITIVE SIGN BEFORE THE COEFFICENT OF WEEKLY RETURNS OF NIFTY 50 MEANS THERE IS A POSITIVE RELATIONSHIP. IF NIFTY 50 RISE BY 1 UNIT, NESCO LTD WILL INCREASE BY 0.12 AND VICE VERSA. THE COEFFICENT OF NIFTY 50 HAS t stat =( 0.29) AND THE P VALUE OF WHICH IS 0.0077 WHICH IS LESS THAN 0.05 MEANING BETA IS STATISTICALLY SIGNIFICANT AT 5% LEVEL AND N= 48, NO. OF OBSERVATIONS ARE 48. R2 IS 0.185 WHICH MEANS 1.85% OF WEEKLY RETURNS OF NESCO LTD ARE EXPLAINED BY NIFTY 50. 98.15% DEPENDS UPON OTHER FACTORS LIKE FUNDAMENTALS AND MORE ARE OTHER FACTORS. F=0.085 AND THE P VALUE OF THIS IS 0.0077 MEANING IT IS LESS THAN 0.05 MEANING THE OVERALL MODEL IS STATISTICALLY SIGNIFICANT AT 5% LEVEL.
CONCLUSION: BETA IS POSITIVE (0.12),INVEST FOR INVEST FOR LONG TERM.