Topic: Relationship of Prince Pipes and Fittings with Nifty 50
(Date: 1-Jan-2024 – 31-Dec-2024)
Author Name: Punam Jethe
Introduction:
Prince Pipes and Fittings Limited (PPFL) is one of India’s largest PVC pipe manufacturers & multi polymer processors. Incorporated in 1987, and a highly regarded PVC pipes brand, winning the Brand of the Year – Pipes Award at INEX Realty+ Awards 2021.
Prince Pipes and Fittings Limited (PPFL) is a leading Indian manufacturer of polymer pipes and fittings, known for its extensive product range and focus on innovative solutions for plumbing, irrigation, and sewage management, operating under the Prince Piping Systems and Trubore brands.
Objective:
To find out the Beta of Prince Pipes and Fittings Limited (PPFL) and it’s significant.
Literature Review: PPFL acquired premium brand ‘Trubore’ in October 2012 from Chemplast Sanmar Ltd. Trubore brand products are currently sold in South India, primarily in Tamil Nadu. The company plans to increase sales of Trubore products increasing marketing efforts and the number of wholesalers and retailers for Trubore brand products. PPFL plans to expand the presence of Trubore brand initially in all other states in South India and then gradually expand in North, East and West India, thereby making Trubore a pan-India brand in the next three to four years. Over the years, the company’s advertising & promotional expenses have seen a 3.6x jump mainly to create brand awareness in the premium product category.
Data Collection:
Prince Pipes and Fittings Limited and Nifty50 data was download for period 1-1-24 to 31-12-24 and data was manipulated to find out the Friday closing
Prices were calculated of Nifty50 as X and Prince Pipes and Fittings Limited as Y. Y was regression on X
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SUMMARY OUTPUT |
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Regression Statistics |
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Multiple R |
0.067067905 |
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R Square |
0.004498104 |
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Adjusted R Square |
0.000451348 |
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Standard Error |
0.017303063 |
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Observations |
248 |
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ANOVA |
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df |
SS |
MS |
F |
Significance F |
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Regression |
1 |
0.000332789 |
0.000332789 |
1.111533358 |
0.292783256 |
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Residual |
246 |
0.073651412 |
0.000299396 |
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Total |
247 |
0.0739842 |
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Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Lower 95.0% |
Upper 95.0% |
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Intercept |
-0.002112519 |
0.00109876 |
-1.922639327 |
0.055680027 |
-0.004276697 |
5.1658E-05 |
-0.00428 |
5.17E-05 |
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X Variable 1 |
0.11063621 |
0.104938787 |
1.054292824 |
0.292783256 |
-0.09605691 |
0.317329331 |
-0.09606 |
0.317329 |
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Data Analysis:
Equation:
Prince Pipes and Fittings Limited = 0.002112519
Nifty 50 = 0.11063621
Interpretation:
The regression equation describes the relationship between Nifty50 (X) and Prince Pipes and fittings share price (Y), indicating that Prince Pipes and Fittings share price is the dependent variable, while Nifty50 is the independent variable. The positive coefficient of 0.11063621 suggests that for every unit decrease in Nifty50, the Prince Pipes and fittings share price is expected to increase by 0.2268 units.
Conclusion: The beta value of Prince Pipes and Fittings Limited 0.002112519 which shows that it moves opposite to the market but is not highly volatile.
References: