Title : Relationship of Nifty 50 with Apollo Hospitals Enterprise Limited .
Author name : Anmol Prabhu
Introduction :
Apollo Hospitals Enterprise Limited (AHEL), a leading healthcare provider in India, offers a wide range of services from hospitals and pharmacies to diagnostics and telemedicine. It’s known for its integrated healthcare model, encompassing tertiary care, primary care, and retail healthcare. AHEL operates a large network of hospitals, clinics, and pharmacies, and also provides healthcare management consulting and education. The company is committed to quality, innovation, and compassionate patient care, serving a global clientele. AHEL’s mission is to bring international standards of healthcare within reach of every individual.
Objective :
To determine the beta value of Apollo Hospitals Enterprise Limited relative to the Nifty 50 index and assess its statistical significance .
Literature Review :
1. Economic feasiblity of Apollo Hospitals : ( Sahayaraj , 2018 ) analysed that Apollo Hospital in Chennai is economically feasible due to its cost-effective treatment options, strong brand reputation, and advanced healthcare services. The hospital attracts a high number of international patients, making it a market leader in medical tourism. Its success is driven by quality services, value-added offerings, and efficient promotional activities. A significant percentage of patients express satisfaction with treatments and recommend Apollo to others. The hospital benefits from continuous investments in research, technology, and infrastructure, ensuring long-term economic sustainability.
2. Contribution of Apollo Hospital in India’s medical industry : ( Jayashankar , 2009 ) states that Apollo Hospitals in India has significantly advanced in healthcare technology over the years. An MBA student visiting Apollo Hospitals in Delhi was surprised by the high level of medical technology available. In 1982, emergency surgery options were limited, but medical care in urban areas has greatly improved. Apollo Hospitals plays a key role in India’s growing medical tourism industry, attracting foreign patients with lower-cost surgeries. By 2012, medical tourism in India was expected to become a $2.1 billion industry, with Apollo Hospitals contributing to this growth.
Data Collection :
Data for Apollo Hospitals Enterprise Limited and Nifty 50 was downloaded for the period from 1st January, 2024 to 31st December, 2024. The data was manipulated to calculate the Friday closing prices for both indices. The Nifty 50 was represented as X and Apollo Hospitals Enterprise Limited as Y. A linear regression analysis was performed where Y was regressed on X.
Data Analysis :
Equation : Apollo Hospital Enterprise Limited = 0.2979 + 0.7667 Nifty 50.
Interpretation :
The regression equation describes the relationship between the Nifty 50 (X) and the Apollo Hospital’s share price (Y) . Indicating that the Apollo Hospital Enterprise Limited share price is the dependent variable , while Nifty 50 is the independent variable .The positive coefficient of 0.7667 suggests that every unit increase in Nifty 50 , Apollo Hospital Enterprise Limited share price is expected to increase by 0.7667 units . With 47 observations , the model’s R – squared value is 0.1554 , implying that approximately 15.54% of the variation in Apollo Hospital’s share price can be explained by changes in Nifty 50 , while the remaining 84.46% is attributed to other factors not included in the model . The p – value for the slope is 0.00609 , which is less than the conventional threshold of 0.05 , indicating that the relationship between Nifty 50 and Apollo Hospital’s share price is statistically significant at the 5% level . Consequently , this model provide strong evidence to suggest a significant linear relationship between Nifty 50 and Apollo Hospital’s share price , suggesting that market movements have a meaningful impact on the company’s share price .
Conclusion :
Since the Beta (0.7667 ) is less than 1 , it indicates that Apollo Hospital Enterprise Limited is good for long term investment .
References :
1. Jayashankar M. Swaminathan, 2009. “Connecting Wave: HEALTHCARE,” World Scientific Book Chapters, in: Jayashankar M Swaminathan (ed.), Indian Economic Superpower Fiction or Future?, chapter 11, pages 161-163, World Scientific Publishing Co. Pte. Ltd.
2. M Vincent Sahayaraj, 2018. “A Study on Economic Feasibility of Apollo Hospitals, Chennai,” Shanlax International Journal of Economics, Shanlax Journals, vol. 6(3), pages 47-53, June.
