TITLE : RELATIONSHIP OF NIFTY WITH S CHAND COMPANY LIMITED
AUTHOR: SHIVANI INGOLE (DIV=A , ROLL NO. 22)
INTRODUCTION: s chand and company limited is leading Indian education content company, and they deliver content, solutions and services across the education lifecycle. They have a strong foothold in the CBSE/ICSE affiliated schools, with increasing presence in the state board affiliated schools across India. Their focus is on developing quality content and educational innovations, and in recent years theyb have increased their focus on investing and improving their digital offerings in each of their business segments.
OBJECTIVE: To find out the beta of the S CHAND COMPANY LIMITED and find its significance.
LITERATURE REVIEW:
1) S Chand Publishing concluded FY24 by achieving a net cash position of ₹600 million, transitioning from a net debt of ₹60 million in the previous year, attributed to effective working capital management. The company reported consolidated revenues of ₹6,626 million, an EBITDA of ₹1,098 million, and a PAT of ₹511 million, marking its highest gross and EBITDA margins in five years.
2) S Chand Publishing’s achievement of a net debt-free status in FY24, coupled with robust financial metrics, is a positive indicator for the company’s financial health. Such developments typically enhance investor confidence, potentially leading to an appreciation in the company’s stock price.
DATA COLLECTION: Data for S.CHAND COMPANY LIMITED downloaded from NSE and manipulated for friday closing point , weekly return of Nifty will be X and weekly return of company will be Y
DATA ANALYSIS :
Regression equation Y=(a+Bx) that is Y= (-0.87+1.03 Nifty50)
The above equation shows the relationship of S CHAND COMPANY LIMITED with Nifty50 where Dependent Variable is weekly return value of ,S Chand Company Limited share price and Independent variable is weekly return of the market index of Niftys closing share price.
The positive coefficient of 1.03 suggests that for every unit increase in Nifty 50, the S chand company limiteds share price is expected to increase by 0.103.
With N=47 means there are 47 observations , R square is 0.16 indicates that 16% of the variation in the dependent variable in S Chand’s return is explained by the independent variable (market return).
This suggests a weak explanatory power, meaning other factors influence S Chand’s return.
p value for slope is 0.15 which is less than 0.05, meaning the market return significantly influences S Chand’s return. Since Significance F = 0.01 < 0.05, the overall model is statistically significant, meaning the independent variable (market return) has a significant impact on the dependent variable (S Chand’s return).
CONCLUSION: As Beta is more than 1 this company is good for short term investment.
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REFERENCE: https://daijiworld.com/news/newsDisplay?newsID=1255128
https://smestreet.in/infocus/s-chand-publishing-ends-fy24-as-net-debt-free-4606595