Title: Relationship of Apar Industries with Nifty50
Author: Aniket Phapale
Introduction
Apar Industries Limited is a leading Indian manufacturer in the electrical and power sector, specializing in conductors, specialty oils, cables, and lubricants. Founded in 1958, Aparhas built a strong reputation as a key player in India’s power infrastructure development. The company supplies high-performance products to power utilities, industrial clients, and OEMs across the globe. With a focus on innovation and technology, Apar Industries has expanded its product portfolio to include high-voltage power cables, transformer oils, and automotive lubricants. The company also exports its products to over 100 countries, making it a global player in the electrical and industrial manufacturing sector.
Objective
To find out the Beta of Apar Industries and its significance.
Literature Review
Gourdon, Daniel et al. (2023) present refined methodologies for evaluating industrial production capacity. The study highlights the limitations of traditional capacity assessments and proposes using average production figures to account for fluctuations. It also examines how mergers and acquisitions impact capacity and suggests dynamic assessment models to better understand industrial performance. The report provides a comprehensive approach to analyzing industry capacity, which can aid policymakers and stakeholders in optimizing production efficiency.
David (2017) investigates the relationship between industrial capacity and economic growth across various sectors. Using panel data from 1990 to 2015, the study employs econometric models to assess how fluctuations in industrial output influence GDP growth. The findings suggest a positive correlation between enhanced industrial capacity and economic development, particularly in emerging economies where manufacturing plays a crucial role. The study underscores the importance of policies that support the expansion of key industries like power and electrical manufacturing.
Data Collection
Apar Industries Limited and Nifty50 data were collected for the period 01-01-2024 to 31-12-2024. The data was manipulated to calculate the Friday closing prices, where Nifty50 values were considered as X and Apar Industries’ stock price as Y. A regression analysis was performed using Y on X.
Data Analysis
Equation:
Apar Industries = 0.0118 + 0.9152 Nifty50
Interpretation
The regression equation describes the relationship between Nifty50 (X) and Apar Industries’ share price (Y).
The slope (0.9152) suggests that for every 1 unit increase in Nifty50, the Apar Industries’ share price is expected to increase by 0.9152 units.
The R² value is 0.069, indicating that only 6.9% of the variation in Apar Industries’ share price can be explained by changes in Nifty50. This suggests that other factors significantly influence Apar Industries’ stock price.
The F-value for the model is 3.26, which is relatively low, indicating a weaker relationship between the two variables.
The p-value for the slope is 0.078, which is greater than 0.05, meaning the relationship is not statistically significant at the conventional 5% level.
Conclusion
Apar Industries’ beta of 0.9152 indicates that it is more volatile than the market and may be better suited for short-term investments.
References
1. Karin Gourdon, Laurent Daniel, Takuya Adachi, & Emilie Berger (2023). “New approaches to industrial capacity assessments,” OECD Science, Technology and Industry Policy Papers 140, OECD Publishing.
2. David Perry (2017). “2016 Status Report on Major Equipment Procurement,” SPP Research Papers, The School of Public Policy, University of Calgary, vol. 10(22), September.