Relationship of Nifty with Redington Ltd Ltd.

1.    INTRODUCTION

·       Operating in India, the Middle East, Africa, and other emerging areas, Redington Limited is a top provider of supply chain solutions and technology distribution.

·       Through a vast network of channel partners, the company specializes in the end-to-end distribution of IT, mobile, and technology solutions.

·       Redington specializes in high-volume logistics operations, demand forecasting, and effective inventory management.

·       It is appropriate for operations and supply chain management studies because to its asset-light and scalable distribution model.

2.    OBJECTIVE

            To calculate β of Redington Ltd. and observe its significance.

3.    DATA COLLECTION

·       Historical data of Redington Ltd. and NIFTY50 index data (downloaded from NSE website for the period 01-Dec-24 to 30-Nov-2025).

·       The data was manipulated to get Friday closing prices.

4.    LITERATURE REVIEW

·       The literature for Redington Ltd., highlights its asset-light distribution model, extensive partner network, and strategic move toward value-added services such as cloud and digital solutions to remain competitive.

5.    DATA ANALYSIS

·       Regression Equation: –

y = 1.502012483x -0.214593166

                        where: –

                                    y = Weekly Return for Redington Ltd.

                                    x = Weekly Return for NIFTY

This equation tells us that if weekly returns of NIFTY increases, then weekly return for Redington Ltd also increases.

·       Number of Observations = 48

·       t-stat for β = 2.917729825

·       p-value = 0.005438329 × 10⁻⁶ èThis indicates that since p-value < 0.05, β is statistically significant at 1% level.

·       R2 = 0.156166865 è This indicates that around 15% of the weekly return for Redington Ltd. is explained by the weekly return for NIFTY. 85% is the error due to the other variables which are not in model.

·       F = 8.513147331 è The overall model is statistically significant.

6.    CONCLUSION

Here β = 1.502012483 è Since β ≥ 1, it is good for short-term investment if NIFTY rises.

7.    REFERENCES

Shastri, A. SWOT Analysis of Redington India (IIDE case analysis).

By ramesh bishnoi

MBA student, OPS&SCM

Leave a comment