NAME \u2013 ADITYA GOVANDE
\nSAPID \u2013 80012100566
\nDIVISION A<\/p>\n
Relation between NIFTY and Aditya Birla Capital
\nIntroduction:
\nAditya Birla Capital Limited (ABCL) is the holding company of all the financial services businesses of the Aditya Birla Group. Through its subsidiaries and joint ventures, it manages aggregate assets worth more than Rs3000 billion and has a lending book of Rs601 billion (including housing) as of December 31, 2019. ABCL is among the top five private diversified NBFCs in India. It is also one of the largest private life insurance companies, asset management companies and general insurance brokers in the country. The company has undertaken various internal and external sustainability efforts to be a sustainability leader in its sector.
\nFinancials of Aditya Birla Capital Limited:
\n\u2022\tNet Interest Income (NII) at Rs 5801.67 crore in December 2021 up 1.15% from Rs. 5031.97 crore in December 2020.
\n\u2022\tQuarterly Net Profit at Rs.520.21 crore in December 2021 up 13.78% from Rs. 377.34 crore in December 2020.
\n\u2022\tOperating Profit stands at Rs. 73.03 crore in December 2021 up 2.44% from Rs. 29.85 crore in December 2020.
\n\u2022\tAditya Birla Capital EPS has increased to Rs. 0.30 in December 2021 from Rs. 0.13 in December 2020.
\n\u2022\tAditya Birla Capital shares closed at 109.85 on February 07, 2022 (NSE) and have given 5% returns over the last 6 months and 12.04% over the last 12 months.<\/p>\n
Objective:
\nTo calculate the Beta value and find its significance.<\/p>\n
Data collection:
\nThe data was gathered from a secondary source, the NSE’s official website. Data on the NSE’s daily closing stock price and Aditya Birla Capital has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.
\nData Analysis:
\nRegression Equation:
\nWeekly returns of Aditya Birla Capital:0.98833955 + 0.030720247(Nifty)
\nRegression Statistics
\nMultiple R\t0.54904915345
\nR Square\t0.301454972
\nAdjusted R Square\t0.28593175
\nStandard Error\t4.814941926
\nObservations\t47<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.30145497, meaning that the 30.1% of weekly returns of Aditya Birla Capital can be explained by Nifty, which is comparatively higher than most industry trends.We can conclude that Aitya Birla Capital does follows the Nifty trend.<\/p>\n
ANOVA
\n \tdf\tSS\tMS\tF\tSignificance F
\nRegression\t1\t450.2178\t450.2178\t19.4196\t0.000064320716
\nResidual\t45\t1043.26495921\t23.18366
\nTotal\t46\t1493.482765\t \t \t <\/p>\n
Interpretations:
\nH0: Nifty is not influencing the weekly returns of Aditya Birla Capital
\nH1: Nifty is influencing the weekly returns of Aditya Birla Capital
\nHere as the F value is 19.4196 which is more than 4, thus we reject the null hypothesis and accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of Aditya Birla Capital.
\nAlso, the Significance F value is 0.000064320716 which is less than .025 thus the model is significant. <\/p>\n
\tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%\tLower 95.0%\tUpper 95.0%
\nIntercept\t-0.750708\t0.706072\t-1.06321\t0.29335\t2.172\t4.8\t2.17\t0.671
\nReturns\t0.0087387\t0.0019830\t4.406\t0.00006\t0.0047\t0.012\t0.04\t0.012<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 0.0087387meaning that 1 unit change in Nifty leads to 0.0087387 change in weekly returns of Aditya Birla Capital. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
\nP value is 0.00006432071which is less than .05 thus the model is significant at 95% confidence interval. <\/p>\n","protected":false},"excerpt":{"rendered":"
NAME \u2013 ADITYA GOVANDE SAPID \u2013 80012100566 DIVISION A Relation between NIFTY and Aditya Birla Capital Introduction: Aditya Birla Capital Limited (ABCL) is the holding company of all the financial services businesses of the Aditya Birla Group. Through its subsidiaries and joint ventures, it manages aggregate assets worth more than Rs3000 billion and has a… Continue reading Aditya Birla Capital<\/span><\/a><\/p>\n","protected":false},"author":91986,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-16052","post","type-post","status-publish","format-standard","hentry","category-investing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16052","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\/91986"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16052"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16052\/revisions"}],"predecessor-version":[{"id":16110,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16052\/revisions\/16110"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16052"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}