Name of author: Kajol Chakraborty<\/p>\n
Introduction: Kalyani Steels Ltd (KSL) was established in Feb 1973 in Pune as a part of the Kalyani Group, primarily with the objective of fulfilling the group\u2019s in-house requirements of forging quality steel. Post reforms and liberalization in early 90\u2019s, the manufacturing sector witnessed unprecedented growth, and KSL identified tremendous potential beyond serving the in-house requirements. There was a need to grow, upgrade, diversify and economize. Thus, KSL shifted base to Hospet, Karnataka, to set up a world class integrated steel mill (iron-ore based, blast-furnace route) in 1997, with a hot metal capacity of 2,90,000 TPA. This establishment was of extreme strategic importance, with southern region being a budding automotive hub, and Karnataka being a state rich in Iron Ore, along with Mangalore port for other raw material imports.<\/p>\n
Objective: To calculate the beta of KALYANI STEEL Ltd. and its significance.<\/p>\n
Data Collection: Data from 1st December 2021 to 30th November 2022 has been downloaded from www.nseindia.com.
\nWeekly returns of NIFTY 50 has been calculated using (X2-X1)\/X1*100 and Weekly returns of Equity has been calculated using (Y2-Y1)\/Y1*100. Weekly Returns of Equity has been regressed on Weekly returns of NIFTY.<\/p>\n
Data Analysis:
\n\u2022\tY(Kalyani Returns) = 0.085+0.384X(Nifty Returns)+ E
\n\u2022\tt-stat = 1.601
\n\u2022\tR2 = 0.051
\n\u2022\tF = 2.563
\n\u2022\tN = 49
\nThe above equation tells us about the relationship between Nifty returns and Equity returns. The positive sign means, there is a direct relationship. If Nifty rises, Equity will also rise and if Nifty falls Equity will also fall. The coefficient of Nifty is (0.384), which means if Nifty risesby 1 unit then Equity will rise by 0.384 units and vice-versa.
\nNumber of observation(N) are 49 and t-stat value is 1.601. P value for this is 0.11604, which is more than 0.05 which means (b) is not statistically significant at 5%.
\nR2 is 0.05, which means 5% of Equity is explained by Nifty, balance 95% is error. Error is due to the variables which are not in the model.
\nF value is 2.56, the P value for which is 0.11, which is greater than 0.01, which means overall the model is not statistically significant. <\/p>\n
Conclusion: Here the Beta value is equal to 0.384, which is less than 1, it means it is not a good investment proposal given that the Nifty rises.<\/p>\n","protected":false},"excerpt":{"rendered":"
Name of author: Kajol Chakraborty Introduction: Kalyani Steels Ltd (KSL) was established in Feb 1973 in Pune as a part of the Kalyani Group, primarily with the objective of fulfilling the group\u2019s in-house requirements of forging quality steel. Post reforms and liberalization in early 90\u2019s, the manufacturing sector witnessed unprecedented growth, and KSL identified tremendous… Continue reading Calculation of beta of KALYANI STEEL LTD. and its significance.<\/span><\/a><\/p>\n","protected":false},"author":108108,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-16815","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16815","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\/108108"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16815"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16815\/revisions"}],"predecessor-version":[{"id":16855,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16815\/revisions\/16855"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16815"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}