Title – Relationship of Polycab India Limited with Nifty 50
Author- Pranjal Vavhal
Introduction – Polycab India Limited is an Indian electrical equipment company and the country’s largest manufacturer of wires and cables, holding a significant market share in the organized sector. Headquartered in Mumbai, the company has diversified its portfolio to include a wide range of Fast-Moving Electrical Goods (FMEG) such as fans, switches, LED lighting, and solar products. Polycab also operates an engineering, procurement, and construction (EPC) business, focusing on power distribution and rural electrification projects. The company has a vast manufacturing footprint and distribution network, serving customers both domestically and in over 70 countries globally.
Objective – To calculate Beta of Polycab India Limited and observe its significance.
Literature review – 1) Valecha and Lodha(2025) The Indian electricals industry has grown steadily due to infrastructure development, urbanization, and increasing electrification. Prior studies highlight that firms with strong manufacturing capabilities, efficient operations, and premium product strategies achieve superior performance. The Anand Rathi Research report (2025) on Polycab India supports this view, showing strong growth in cables and wires driven by infrastructure demand and effective cost pass-through mechanisms. The literature also suggests that diversification into fast-moving electrical goods can enhance profitability when supported by premiumisation and scale efficiencies. Overall, strategic capital investment and operational efficiency emerge as key drivers of sustainable growth in the electricals sector.
2) Sharma and Singla (2025) This study empirically examines the impact of firm-specific fundamental variables on stock returns of Nifty-50 companies during 2009–2021. Quarterly percentage changes in trailing twelve-month (TTM) fundamentals, along with market premium and lagged returns, are analyzed using a two-way Generalized Method of Moments (GMM) model. The results indicate that asset turnover ratio, lagged operating profit margin, and sales significantly influence stock returns, in addition to market risk. The findings also reveal a negative relationship between lagged and current returns, confirming the presence of a contrarian effect in the Indian equity market.
Date collection – Historical data of Polycab India Limited and Nifty 50 index data was downloaded from NSE website from the period 1/12/24 to 30/11/25. The data was manipulated to get Friday closing price.
Data analysis – Regression equation Y = 0.242872 + 1.574326 X
t stat (4.2031)*
Y represents the dependent variable (Return on Equity)
X represents the independent variable (Return on Nifty 50)
R-square – 0.281912, F value – 17.6664, P-value – 0.000123, N – 49
The regression model is statistically significant and indicates that approximately 28.2% of the variance in the dependent variable (Y) can be explained by the independent variable (X).
Intercept (0.242872) this value suggests that when the independent variable (X) is zero, the expected value of the dependent variable (Y) is approximately 0.24. Coefficient (1.574326) this is the core finding. It means that for every one-unit increase in the independent variable (X), the dependent variable (Y) is expected to increase by approximately 1.57 units.
This indicates that about 28.2% of the total variation in the dependent variable (Y) can be explained by the independent variable (X) through this model. The remaining 71.8% of the variation is due to other factors not included in this simple model or random chance. This suggests a moderate explanatory power. The P-value (0.000123) is much smaller than the standard significance level of 0.05. This low P-value means that the results are statistically significant, and we can be confident that the observed relationship between (X) and (Y) is real and not just due to random sampling error. The independent variable is a reliable predictor of the dependent variable.
Conclusion – Beta is greater than one it is good for short term investment if Nifty 50 rises.
References – 1) Manish Valecha et al (2025).Polycab India – Broad-based growth with margin expansions; retaining a buy.Anand Rathi research (10/2025).Malad (East).
2) Ramphal Sharma et al (2025).Quarterly changes in financial indicators and stock returns: An empirical study on Nifty 50 stocks in the Indian equity market.Journal of academics research in economis.17(3).(11/2025).(685-702).