- Title :- Relationship of Dalmia Bharat Ltd with Nifty 50.
Author:- Desha kesaria
Introduction to Dalmia Bharat Limited :-
Dalmia Bharat Limited, established in 1939 and headquartered in New Delhi, is a leading Indian conglomerate with a strong presence in cement, sugar, refractories, and power industries. One of India’s largest cement manufacturers, it operates under the Dalmia Cement brand with a production capacity exceeding 41.1 MTPA. Led by Puneet Dalmia, the company focuses on innovation, sustainability, and reducing carbon emissions. Listed on the NSE and BSE, Dalmia Bharat plays a key role in India’s industrial and infrastructure development while promoting environmentally responsible practices.
Objective:-
To calculate the beta of Dalmia Bharat Ltd and find out its significance.
Literature Review :-
1)A study by Gupta and Rao (2023) analyzed the relationship between cement sector stocks and market indices. It found that Dalmia Bharat Limited experiences moderate volatility compared to other cement companies due to its diversified market presence and focus on cost efficiency. The study also highlighted that cement stocks are influenced by infrastructure demand and raw material price fluctuations.
2) A study by Mehta and Sharma (2023) examined the role of sustainability initiatives in enhancing the competitive advantage of Indian cement companies, including Dalmia Bharat Ltd. The research found that companies focusing on carbon reduction, alternative fuel usage, and energy efficiency, like Dalmia Bharat’s goal to be carbon-negative by 2040, gain higher investor confidence and regulatory benefits. The study also highlighted that environmentally responsible firms experience long-term cost savings and improved brand reputation, strengthening their market position.
Data Collection :-
Data for Dalmia Bharat 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 Dalmia Bharat Limited as Y. A linear regression analysis was performed where Y was regressed on X.
Data Analysis :-
Equation: Dalmia Bharat Ltd = -0.007 + 0.867 Nifty 50.
Interpretation :-
The regression equation describes the relationship between Nifty50 (X) and Dalmia Bharat Ltd share price (Y), indicating that Dalmia Bharat Ltd’s share price is the dependent variable, while Nifty50 is the independent variable. The positive coefficient of 0.867 suggests that for every unit increase in Nifty50, the share price of Dalmia Bharat Ltd is expected to increase by 0.867 units. With 47 observations ((N = 47)), the (R^2) value is 0.17154, implying that approximately 17.15% of the variation in Dalmia Bharat Ltd’s share price can be explained by changes in Nifty50. The F-value for the model is 9.31766. The p-value for the slope is 0.003, which is less than the conventional threshold of 0.05. This indicates that the relationship between Nifty50 and Dalmia Bharat Ltd’s share price is statistically significant at the 5% level. Consequently, this model provides evidence to suggest a significant linear relationship between Nifty50 and Dalmia Bharat Ltd’s share price.
Conclusion :
In this case, Dalmia Bharat Ltd.’s beta of 0.867 indicates that it is less volatile than the market and better suitable for short-term investment.
References :-
1. 1)Gupta, R., & Rao, S. (2023). Analysis of Cement Sector Stocks and Market Indices. Journal of Financial Markets, 15(2), 45-60.
2. 2) A study by Mehta and Sharma (2023) examined the role of sustainability initiatives in enhancing the competitive advantage of Indian cement companies, including Dalmia Bharat Ltd.Dalmia Bharat Sustainability Report).