1) Title
Relationship of Sreeleathers Ltd with Nifty 50
2) Author
Vaishnavi Nimodiya
3) Introduction: Sreeleathers Ltd.
Sreeleathers Ltd. is an Indian footwear manufacturing and retail company known for offering affordable and durable footwear products. The company operates through a chain of retail outlets across India and caters mainly to the mass consumer segment. Sreeleathers focuses on cost efficiency, wide product variety, and value-for-money pricing.
The company is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). As a consumer-oriented company, its stock performance may be influenced not only by overall market movements but also by firm-specific factors such as demand trends, input costs, and consumer spending behavior.
4) Objective of the Study
The objective of this study is:
To calculate beta and observe its significance
5) Literature Review
According to ABESCO (Security Analysis and Portfolio Management), regression analysis is a widely used tool to study the relationship between an individual stock’s returns and market returns. The beta coefficient measures the responsiveness of a stock to market movements and helps investors assess systematic risk.
ABESCO also highlights that the R² value represents the proportion of variation in a stock’s returns explained by market returns. A low R² indicates that stock performance is largely driven by company-specific or external factors rather than market movements.
6) Data Collection
Data for Sreeleathers Ltd. and Nifty 50 was collected from NSE India for the period 1st December 2024 to 30th November 2025.
Friday closing prices were taken, and weekly returns were calculated.
Weekly returns of Nifty 50 were taken as X
Weekly returns of Sreeleathers Ltd. were taken as Y
Y was regressed on X using the ordinary least squares (OLS) method
Total observations: 48 weeks
7) Data Analysis
Regression Equation:
Return of Sreeleathers Ltd.
=
161.15
−
0.00086
(
Return of Nifty 50
)
Return of Sreeleathers Ltd.=161.15−0.00086(Return of Nifty 50)
Statistical Results:
N = 48
R² = 0.00498
F value = 0.230
P value (Significance F) = 0.633
Beta (β) = –0.00086
The regression equation shows a very weak and negative relationship between returns of Sreeleathers Ltd. and Nifty 50. The beta value is close to zero, indicating that the stock is almost insensitive to market movements.
The t-statistic for beta is –0.48, and the p-value is 0.633, which is greater than 0.05. This implies that the beta is statistically insignificant.
The R² value of 0.00498 indicates that less than 1% of the variation in returns of Sreeleathers Ltd. is explained by movements in the Nifty 50. Nearly 99% of the variation is due to firm-specific or other external factors not included in the model.
The F-statistic (0.230) and its p-value confirm that the overall regression model is not statistically significant.
8) Conclusion
Sreeleathers Ltd., with its near-zero and statistically insignificant beta, shows negligible co-movement with the Nifty 50, making it unsuitable for short-term market-driven strategies but potentially attractive to investors prioritizing company fundamentals over broader market trends.
9) References
NSE India
ABESCO Web