Calculation of Beta for KALYAN JEWELLERS Limited and its significance<\/p>\n
Name of the author: KUNDAN BHATI
\nIntroduction:
\nKalyan Jewellers was founded by T. S. Kalyanaraman, who opened the first jewellery showroom in 1993 in Thrissur, Kerala, India with an initial capital of \u20b97.5 million (US$94,000). The company also has strong roots in the textile trading, distribution, and wholesale business.
\nThe South Indian states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana were where Kalyan Jewellers first grew stronger. Amitabh Bachchan was appointed as their first National Brand Ambassador in 2012 as they ventured outside of South India by building a shop there in Gujarat. By launching six stores simultaneously in the UAE in 2013, Kalyan Jewellers entered international markets. Since then, it has expanded and now manages 30 showrooms in the Middle East, including locations in the UAE, Qatar, Kuwait, and Oman. With approximately 137 shops as of February 2020, 107 of which are in India and the remaining 30 in the Middle East, Kalyan Jewellers has a significant global reach. In addition, the business established “My Kalyan,” a customer service facility that allows for wedding advance reservations.
\nObjective:
\nTo find out relationship between NIFTY50 and KALYAN JEWELLERS equity
\nData Collection:
\nData of NIFTY50 and KALYAN JEWELLERS Limited equity were downloaded from the website of NSE for a period of one year from the date of 1st January 2022 to 31st December 2022. Then friday\u2019s closing prices were recorded as weekly closing prices and calculation was done for weekly return with the help of the formula (Y2 \u2013 Y1)\/Y1 * 100, where Y2 is the observed friday\u2019s closing price and Y1 is the preceding friday\u2019s closing price. Later, weekly returns of KALYAN JEWELLERS Limited were regressed on the weekly return of NIFTY.
\nData Analysis:
\nEquation: Y = 1.2998 + 0.3627X
\n\t\t\t(0.9934)
\nIn the above equation,
\nN = 50
\nR2 = 0.020145
\nF = 0.98684
\nExplanation:
\nThe above-mentioned equation tells us about the relationship between the weekly returns of NIFTY50 and KALYAN JEWELLERS Limited.
\nThe presence of positive sign in the equation represents that there is direct relationship between the weekly returns of NIFTY50 and KALYAN JEWELLERS Limited i.e., if the value of NIFTY50 will rise, there will be a rise in the stock price of KALYAN JEWELLERS Limited and if there will be decline in the value of NIFTY50, then there will also be decline in the stock prices of KALYAN JEWELLERS Limited. The Co-efficient of NIFTY50 is 0.3627 which means if the weekly return of NIFTY rises by 1 unit, then there will be a rise by 0.3627 in the weekly return of KALYAN JEWELLERS Limited and vice versa.
\nTotal number of Observations are 50.
\nFigure in the bracket is T-stat and the P-Value of which is 0.006 which is less than 0.05 which means p is statistically significant at 3% level. Also, it is less than 0.01 so we can say that p is statistically significant at 1% level.
\nR2 is 0.020145 which means 2.01% of KALYAN JEWELLERS Limited(Y) is explained by NIFTY(X) balance 97.99% is error. Error here is due to variables which aren\u2019t in the model.
\nF is 0.98684 the P-Value for which is 0.006 which is less than 0.01 which means overall the model is statistically significant.
\nConclusion:
\nAs from the above-mentioned regression equation it can be observed that the Beta is 1.2998 which is more than 1 which states the fact that it is good for investment in short term.<\/p>\n","protected":false},"excerpt":{"rendered":"
Calculation of Beta for KALYAN JEWELLERS Limited and its significance Name of the author: KUNDAN BHATI Introduction: Kalyan Jewellers was founded by T. S. Kalyanaraman, who opened the first jewellery showroom in 1993 in Thrissur, Kerala, India with an initial capital of \u20b97.5 million (US$94,000). The company also has strong roots in the textile trading,… Continue reading Calculation of Beta for KALYAN JEWELLERS Limited and its significance<\/span><\/a><\/p>\n","protected":false},"author":108613,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,46],"tags":[1721,56],"class_list":["post-16937","post","type-post","status-publish","format-standard","hentry","category-finance","category-investing","tag-kalyan-jewellers","tag-nifty-50","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16937","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\/108613"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16937"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16937\/revisions"}],"predecessor-version":[{"id":16949,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16937\/revisions\/16949"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16937"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}