REPORT<\/p>\n
Title: Calculation of beta of Aurobindo Pharma Ltd and its significance.<\/p>\n
Name of the author: Akanksha Amrale<\/p>\n
Introduction: Aurobindo Pharma Ltd was founded by Mr.P.V.Ramprasad Reddy, Mr.K Nityananda Reddy and a small group of highly committed professionals. It commenced operations in 1988-89 with a single unit manufacturing Semi-Synthetic Penicillin(SSP) at Pondicherry. Aurobindo Pharma became a public company in 1992 and it listed its shares on the Indian stock exchanges in 1995.In addition to being the market leader Semi-Synthetic Penicillins, it has a presence in key therapeutic segments such as neurosciences, cardiovascular,etc.
\n Objective: To calculate the beta Aurobindo Pharma Ltd. and its significance.
\nData 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\u25cf\tY(Aurobindo Returns) = 593.038+4.28X(Nifty Returns)+ E
\n\u25cf\tt-stat = 1.819
\n\u25cf\tR2 = 0.064
\n\u25cf\tF = 3.311
\n\u25cf\tN = 50
\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 (4.283), which means if Nifty rises by 1 unit then Equity will rise by 4.283 units and vice-versa.
\nThe number of observations(N) is 50 and the t-stat value is 1.819. The p-value for this is 0.075, which is more than 0.05 which means (b) is not statistically significant at 5%.
\nR2 is 0.06453, which means 6.4%of Equity is explained by Nifty, and a balance of 93.6% is an error. Error is due to the variables which are not in the model.
\nF value is 3.311445, the P value for which is 0.075, 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 4.283, which is greater than 1, it means it is a good investment proposal given that the Nifty does not rises.<\/p>\n","protected":false},"excerpt":{"rendered":"
REPORT Title: Calculation of beta of Aurobindo Pharma Ltd and its significance. Name of the author: Akanksha Amrale Introduction: Aurobindo Pharma Ltd was founded by Mr.P.V.Ramprasad Reddy, Mr.K Nityananda Reddy and a small group of highly committed professionals. It commenced operations in 1988-89 with a single unit manufacturing Semi-Synthetic Penicillin(SSP) at Pondicherry. Aurobindo Pharma became… Continue reading Aurobindo Pharma Ltd relationship with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":108392,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-16912","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\/16912","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\/108392"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16912"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16912\/revisions"}],"predecessor-version":[{"id":16918,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16912\/revisions\/16918"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16912"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}