1. INTRODUCTION OF THE COMPANY
Rajdarshan Industries Limited, traded under the equity symbol RAJMET EQ, is an Indian listed company operating in the manufacturing and industrial sector. The company falls under the small-cap category, and its stock prices are highly sensitive to market fluctuations. Small-cap stocks are generally associated with higher volatility and speculative trading.
The present study examines the price movement and return behavior of RAJMET EQ using historical data in order to understand its risk–return characteristics and investment nature.
2. OBJECTIVES OF THE STUDY
The objectives of the study are:
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To analyze the closing price movement of RAJMET EQ
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To examine the daily return pattern of the stock
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To measure the volatility and risk associated with the stock
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To study the relationship between price and returns using regression analysis
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To evaluate the suitability of the stock for investors
3. LITERATURE REVIEW
Previous studies in financial markets indicate that stock price behavior reflects investor expectations and market efficiency. Researchers have observed that small-cap stocks exhibit higher volatility and unpredictable returns due to lower liquidity and limited market information.
Descriptive statistics and regression analysis are commonly used tools in equity research to evaluate risk, return, and the relationship between variables. Several studies conclude that return movements are often independent of price levels in speculative stocks. The methodology adopted in this study is consistent with standard research practices as outlined in the reference research assignment document.
4. DATA COLLECTION
The study is based on secondary data.
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Source of Data: Excel sheet provided
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Period of Study: 01 December 2024 to 30 November 2025
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Tool Used: Microsoft Excel
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Variables Considered:
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Date
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Closing Price
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Daily Return
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The collected data was classified, tabulated, and analyzed using Excel-based statistical techniques.
5. DATA ANALYSIS
5.1 Descriptive Statistics
| Particulars | Closing Price (₹) | Daily Return (%) |
|---|---|---|
| Mean | 5.91 | 1.10 |
| Standard Deviation | 1.93 | 8.00 |
| Minimum | 4.02 | -13.49 |
| Maximum | 10.04 | 100.00 |
| Median | 4.71 | 0.23 |
Interpretation:
The average closing price indicates moderate trading levels. The high standard deviation of returns reflects significant volatility. Extreme minimum and maximum returns indicate speculative price movements.
5.2 Regression Analysis
A simple linear regression analysis was conducted to study the relationship between closing price (independent variable) and daily return (dependent variable).
Regression Results
| Statistic | Value |
|---|---|
| Beta (β) | -0.162 |
| R-Square (R²) | 0.002 |
| F-Statistic | 0.256 |
| P-Value | 0.614 |
Interpretation:
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The beta value (-0.162) indicates a weak inverse relationship between closing price and daily return.
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The R-square value (0.002) shows that only 0.2% of the variation in returns is explained by price movement.
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The F-statistic is very low, indicating poor overall model fit.
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The p-value (0.614) is greater than 0.05, implying that the relationship is statistically insignificant.
Thus, price movement does not significantly influence daily returns of RAJMET EQ.
6. CONCLUSION
The study concludes that RAJMET EQ exhibits high volatility and irregular return behavior, which is characteristic of small-cap stocks. Descriptive analysis reveals wide price fluctuations, while regression results indicate that daily returns are largely independent of closing price movements. Although the stock provides opportunities for high returns, it involves substantial risk. Therefore, the stock is suitable mainly for investors with high risk tolerance. Excel-based analysis proved effective in understanding the stock’s behavior.
7. REFERENCES
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Research Assignment Reference PDF
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Secondary Data from RAJMET EQ Excel Sheet
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Standard Textbooks on Financial Management and Investment Analysis