Author-Shubham Thakkar
Introduction: Supreme Industries Ltd. is India’s largest plastics processor, established in 1942, known for a vast range of innovative plastic products like piping systems, furniture, packaging films, and industrial components, operating through numerous advanced facilities across India and serving diverse sectors from construction to automotive, focusing on quality and sustainability. With an all-encompassing goal of driving change for the betterment of society, Supreme has always made choices that nurture and protect the environment.The company strives to reduce carbon emissions in its operations by increasing the use of renewable energy and low-carbon fuels.It is indeed every company’s responsibility to make changes and choices that benefit the environment. Hence as a company, we aim to foster an environment-first culture in the future as well
Objectives: To Calculate Beta of Supreme Industry and Nifty Fifty Index Data was Downloaded from NSE site from 01/12/24 To 30/11/25
Literature Review:
1) Salunkhe, Vasishta (2014) Supreme Industries Limited is India Leading Processor of plastics, offering wide comprehensive range of plastics product in India. The company operates in various segment viz. plastic piping system, packaging product, and industrial components, material handling system. Supreme industry has 19 technologically advanced manufacturing facilities located at various places spread across the country. The company has built up excellent relationship with its distributors and is also providing orientation to them, to ensure proper services to ultimate customers. Cost analysis is a broad topic and most vital activity in any company. During my study I found SIL has very strong financial structure and management of the company. SIL’s product has good demand in market hence they can build on it. But company focus on direct cost and indirect cost reduced the direct and indirect cost these effects on increased in profit margin of the company.
2) Axis capital (2022) India’s largest plastic processor Supreme is the leader in the Indian plastics industry processing >400K MT of polymers and resins annually. The company offers widest and the most comprehensive range of plastic products in India. It has 25 manufacturing plants with technologically advanced machines procured from leading companies across the world. Leader or top 3 in most of the categories it operates in In piping, it is the market leader with 10% market share. It is 1st in PVC piping, 2nd in agriculture pipes, and 3rd in CPVC pipes. In material handling, its market share stands at 12%. Within protective packing products, the company has >15-55% market share across 50% of products. It is the 2nd in plastic furniture and 1st in premium category
Data Collection: Historical Data of Supreme and Nifty Fifty index data was downloaded from NSE site from 01/12/24 To 31/11/25 that data was manipulated to get Friday closing Price
Data Analysis: Regression equation with T for B
R,F = p Value
Explaination: The above regression equation explains the relationship between Return on Equity and the NIFTY index.
The positive coefficient of NIFTY (0.209289) indicates a positive relationship between NIFTY and Return on Equity. This means that if NIFTY increases by 1 unit, the Return on Equity increases by approximately 0.21 units, and vice versa. The t-statistic for Beta is 3.7299 and the corresponding p-value is 0.000534. Since the p-value is less than 0.05 and also less than 0.01, the beta coefficient is statistically significant at the 1% level, indicating that NIFTY has a significant impact on Return on Equity. The R-square value is 0.236, which means that 23.6% of the variation in Return on Equity is explained by changes in NIFTY. The remaining 76.4% variation is due to other factors not included in the model.
The F-statistic value is 13.91249 with a p-value of 0.000534, which indicates that the overall regression model is statistically significant
Conclusion: If β is greater than 1 it is good for short-term investment if nifty rises
Reference:
1: Salunkhe, Vasishta (2014), (PEZZOTTAITE JOURNALS), Volume 3, No.2 April- June’2014 , Bambhori, Jalgaon (MH), India
2: Axis Capital (2022) , U.S. by Axis Capital USA LLC At US(2022)