Author:- Arslan Khan
About Astral Ltd
Astral Limited, established in 1996 and headquartered in Ahmedabad, is a leading Indian company in building materials. It manufactures and markets pipes, fittings, water tanks, adhesives, sealants, bathware, and paints for residential, commercial, and industrial use. The company was one of the first in India to introduce CPVC piping technology and has diversified into adhesives, paints, and bathware. With multiple manufacturing facilities and a wide distribution network, Astral focuses on innovation, quality, and reliability, making it a well-recognized brand in domestic and international markets.
Objectives of this study
To calculate the beta of Astral ltd company and observe its significance.
Data collection
The historical data of Astral Ltd company and nifty 50 index data was downloaded from the website from the period 1/12/24 to 30/11/25. The data was manipulated to get Friday closing prices.
Literature Review
Astral Limited has shown steady growth in revenue and profit over recent years, with consolidated sales increasing and net profit remaining strong despite market pressures. The company also maintains a diversified product portfolio and a robust financial position, indicating solid business fundamentals in the building materials sector.
Data analysis
The intercept = a = 47083.69
Coeffecient = -bx = 263.7984x
a + bx =47083.69+263.7984x
The equation shows the relationship between the NIFTY 50 and the equity of Astral Ltd . The positive value indicates a direct relationship between them. When the equity price of SP Apparels increases, the NIFTY 50 also rises. A 1-unit increase in the equity leads to about a 263.7984unit increase in the NIFTY 50. Overall, SP Apparels’ equity moves in the same direction as the market.
t-stat for beta is 6.218542, p value of which is 1.36 is more than 1.36, rather beta is statistically significant at 1% level. R2 is 0.5237, which means 67.5808% of the Astral Ltd is explained by nifty 50. 47.89% is the error due to the other variable which are not in the model. F is 1.36 and the p value is 1.36, the overall model is statistically significant.
No of observations = 48
R2 = 0.456716
F – value = 38.67026
P value significance = 1.36
References
V. Rao, M. Iyer (2025) Financial Performance of Astral Limited: Revenue and Profit Trends, Journal of Corporate Finance and Business Research
https://www.bajajbroking.in/blog/astral-ltd-overview
Conclusion
Since beta of Astral Limited is 263.7984, it means the stock is extremely volatile compared to the market. A small change in the NIFTY 50 can cause a very large change in the stock price. The stock carries very high risk and can give huge losses during market downturns. It may provide high returns in a rising market but is not suitable for long-term or conservative investors. It is more appropriate for short-term, high-risk trading.