Title: Relationship of Nifty and Piramal Enterprises Ltd.<\/p>\n
Author: Prateesh Bhambhani<\/p>\n
Introduction:
\nThe Piramal Group is an Indian multinational diversified global business conglomerate, that has presence across various sectors such as healthcare, life sciences, drug discovery, healthcare information management, financial services and real estate. Piramal Enterprises Limited (PEL) is one of India\u2019s leading diversified companies, with a presence in Financial Services and Pharmaceuticals. PEL\u2019s consolidated revenues were ~US$1.7 Billion in FY2020, with around ~34% of revenues generated from outside India. Driven by both organic as well as inorganic strategy, PEL has steered dynamic business growth over the three decades of its existence.<\/p>\n
Objective:
\nTo calculate Beta of Piramal Enterprises Ltd. and find its significance.<\/p>\n
Views and Reviews:
\nAccording to Business Standards Piramal Enterprises is thinly covered by analysts but it stands tall when it comes to ROE and other key metrics. It has delivered 30%+ returns over the past several years. It\u2019s run like a venture fund because Ajay Piramal doesn\u2019t limit himself when it comes to compelling investment opportunities that go beyond the traditional competencies. PEL\u2019s bets in financing have done well and are a bigger chunk of the profitability than healthcare, its core business.<\/p>\n
Data Collection:
\nThe NIFTY and Piramal Enterprises Ltd. data was collected via the NSE website and downloaded in an excel sheet from 1-March-2021 to 28-February-2022. The final prices were discovered. The data was filtered on a weekly basis, and weekly returns for both the NIFTY and the Piramal Enterprises Ltd. were calculated. The returns of the companies have been regressed on the returns of the nifty.<\/p>\n
Data Analysis:
\nPredicted Y = -0.0237342804233226 + -0.0237342804233226 X
\nN=46, R Square= 0.0582199716364876, F= 2.7200393667901
\nTstat(beta)=\t1.64925418501519
\n Tstat (0.05,45)= 2.0141<\/p>\n
The above regression equation tells us the relationship between X and Y. Where X is NIFTY\u2019s weekly returns and Y is Piramal Enterprise\u2019s weekly returns.
\nThe positive sign of Beta tells us the that there is a negative relationship between NIFTY and Piramal Enterprise\u2019s weekly returns.
\nFrom the equation, it can be seen that if X rises by 1 unit, Y will decrease by 0.0237 units.
\nT calculated is more that T tabulated which means, \u03b2 is statistically insignificant at 5% confidence level.
\nR^2 is 0.0582199716364876 which means 5.8% of Y (Piramal Enterprise) is explained by X. And the balance is explained by error.
\nF is 2.72 which is more than table value which means model is statistically significant at 5% level.<\/p>\n
CONCLUSION:
\n\u03b2 is statistically insignificant in case of NIFTY and Piramal Enterprise. Also, it can be concluded that Piramal Enterprise is a low beta share. Since it is less than 1.<\/p>\n","protected":false},"excerpt":{"rendered":"
Title: Relationship of Nifty and Piramal Enterprises Ltd. Author: Prateesh Bhambhani Introduction: The Piramal Group is an Indian multinational diversified global business conglomerate, that has presence across various sectors such as healthcare, life sciences, drug discovery, healthcare information management, financial services and real estate. Piramal Enterprises Limited (PEL) is one of India\u2019s leading diversified companies,… Continue reading Relationship of Nifty and Piramal Enterprises Ltd.<\/span><\/a><\/p>\n","protected":false},"author":91943,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,38,9],"tags":[],"class_list":["post-15969","post","type-post","status-publish","format-standard","hentry","category-economics","category-finance","category-management","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/91943"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15969"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15969\/revisions"}],"predecessor-version":[{"id":16180,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15969\/revisions\/16180"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15969"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}