CALCULATION OF BETA OF ACTIVE CLOTHING CO LTD. AND ITS SIGNIFICANCE<\/p>\n
NAME OF THE AUTHOR: ADARSH YENORKAR<\/p>\n
INTRODUCTION<\/p>\n
Active Clothing Co Limited was incorporated as a private limited company with the name ‘Active Clothing Co Private Limited’ on February 2 2002. Further the Company was converted from a private limited company to a public limited company on December 29 2017 and the name of the company was changed to Active Clothing Co Limited. Mr. Adesh Seth Mrs. Renu Mehra Mrs. Renu Seth and Mrs. Sudarshan Kumari Mehra were the initial subscribers to the Memorandum and Articles of Association of the Company. Active Clothing offers one-stop-solution to its customers providing them design development sourcing manufacturing and retail at one door making it possible to outgrow new innovations and possibilities in its product. It is an integrated apparel manufacturer with the comprehensive capability to design and manufacture high quality readymade garments with a competitive price. Right since the inception Active became a part of the apparel manufacturing industry of India. The Company which initially started with a team of only 10 employees today employs about 1000 employees.<\/p>\n
OBJECTIVES
\nTo calculate beta of Active Clothing Co Limited and its significance<\/p>\n
DATA COLLECTION
\nData of Active Clothing Co Limited from 01-12-2021 to 30-11-2022 from NSE website
\nFriday weekly closing prices has been found out
\nWeekly Return have been calculated with the formula of (Y2-Y1)\/Y1*100
\nWeekly Return of Equity have been regressed on Weekly Return of Nifty<\/p>\n
DATA ANALYSIS
\nWeekly Return of Active Clothing Co Limited = 1.240 + 1.565 Weekly Return of Nifty + E
\nt-stat = 0.3281
\nR2 = 0.2066
\nF = 0.097292
\nN = 50
\nThe above equation tells us the relationship between Weekly Return of and Weekly Return of Nifty. The positive sign means that there is a direct relationship. If nifty rises, equity rises and if nifty falls, equity falls. The coefficient of weekly return of nifty is 1.565, which means if nifty rises by 1 unit, Company’s properties will rise by 1.565 units and vice versa.
\nNumber of Observations are 50 and t-stat is 0.2.
\nP value is 0, which is less than 0.05, means that b is statistically significant at 5%. Even if it is less than 0.01, b is statistically significant at 1% level.
\nR2 is 0.2066, which means that 20.66% of Y (Active Clothing Co Limited) is explained by X (nifty), the balance of 79.34% is error. Error is due to the variables which are not in the model.
\nF is 0.0972, the P value for which isn\u2019t 0 < 0.01, means overall the model is statistically insignificant.<\/p>\n
CONCLUSION
\nSince b = 1.240 is greater than 1, it is statistically significant.
\nActive Clothing Co Limited is a good option for investment because for every increase in nifty there will be an increase in the equity of Industries\u2019s Properties.<\/p>\n","protected":false},"excerpt":{"rendered":"
CALCULATION OF BETA OF ACTIVE CLOTHING CO LTD. AND ITS SIGNIFICANCE NAME OF THE AUTHOR: ADARSH YENORKAR INTRODUCTION Active Clothing Co Limited was incorporated as a private limited company with the name ‘Active Clothing Co Private Limited’ on February 2 2002. Further the Company was converted from a private limited company to a public limited… Continue reading Analysis of “ACTIVE CLOTHING CO LTD.” AND ITS SIGNIFICANCE<\/span><\/a><\/p>\n","protected":false},"author":108347,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,38,9],"tags":[227],"class_list":["post-16893","post","type-post","status-publish","format-standard","hentry","category-economics","category-finance","category-management","tag-research","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16893","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\/108347"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16893"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16893\/revisions"}],"predecessor-version":[{"id":16927,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16893\/revisions\/16927"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16893"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}