Author: Janhavi koli
Introduction
JSW Holding Limited is an Indian investment company and a part of the JSW Group, one of India’s leading conglomerates with interests in steel, energy, infrastructure, cement, and more. The company primarily functions as a holding entity, managing strategic investments in various JSW Group businesses. It plays a crucial role in capital allocation, financial structuring, and long-term value creation for the group. With a focus on sustainable growth and shareholder value, JSW Holding supports the expansion and diversification of the JSW Group across multiple industries. The company holds equity stakes in key JSW Group entities, including JSW Steel, JSW Energy, and JSW Infrastructure, among others. It focuses on capital allocation, portfolio management, and maximizing shareholder value through strategic investment decisions. Despite not being directly involved in manufacturing or operations, JSW Holding contributes significantly to the group’s financial strength and long-term growth.
Objective:
To find out the Beta of Jsw Holding and its significance
Literature Review:
1. A Midcap Company with Strong Growth and Positive Outlook
MarketsMojo (2024) Presented that JSW Holdings’ impressive growth trajectory in the finance industry. It notes that the company’s stock reached a 52-week high, outperforming the sector and the Sensex. Despite market volatility, JSW Holdings maintained steady performance, trading above its moving averages. The article emphasizes the company’s potential for long-term investment due to its strong financials and positive outlook.
2. Building a Legacy of Innovation and Sustainability
Foundr Magazine(2024) Presented that This feature delves into the diversified portfolio of the JSW Group, emphasizing its commitment to innovation and sustainability. While focusing on the group’s various ventures, the article underscores JSW Holdings’ role in driving growth through strategic investments and financial stewardship, contributing significantly to the conglomerate’s success.
Data Collection:
Data for JSW Holding and the relevant market index was collected for a period covering 45 observations. The closing prices were analyzed using regression, with JSW Holding as the dependent variable (Y) and the market index as the independent variable (X).
Data Analysis:
Equation: JSW Holding = -0.1526 + 7.623E-06Nifty50
The regression analysis for JSW Holding indicates a weak and insignificant relationship between the independent and dependent variables. The R-Square (0.0091) shows that only 0.91% of the variation is explained by the model, while the Adjusted R-Square (-0.01398) suggests poor model fit. The F-statistic (0.3934, p = 0.5339) confirms the model’s insignificance. Additionally, both the intercept (-0.1527, p = 0.5987) and X Variable 1 (7.623E-06, p = 0.5339) are statistically insignificant. Overall, the model does not provide meaningful predictive power.
Conclusion:
The beta value 7.623E-06 is extremely small, indicating that the independent variable has a negligible impact on the dependent variable.
Reference:
Markets Mojo. (2024, November 14). JSW Holdings: A Midcap Company with Strong Growth and Positive Outlook. Retrieved fromhttps://www.marketsmojo.com/news/stocks-in-action/jsw-holdings-a-midcap-company-with-strong-growth-and-positive-outlook-300139
Foundr Magazine. (2024). JSW Group: Building a Legacy of Innovation and Sustainability.https://foundrmagazine.in/jsw-group
