{"id":18429,"date":"2023-08-24T19:55:37","date_gmt":"2023-08-24T14:25:37","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=18429"},"modified":"2023-08-24T19:55:37","modified_gmt":"2023-08-24T14:25:37","slug":"relationship-of-muthoot-finance-with-nifty50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=18429","title":{"rendered":"Relationship of Muthoot Finance with Nifty50"},"content":{"rendered":"

Title \u2013 Relationship of\u00a0\u00a0 Muthoot\u00a0 Finance with Nifty 50<\/strong><\/p>\n

Author- Madhuri\u00a0\u00a0 ravindra\u00a0\u00a0 patil. (MMS First year\u00a0 ,Roll no.022107<\/p>\n

Kohinoor Business School.Kurla.<\/p>\n

Introduction:-\u00a0 <\/strong>Muthoot Finance was originally incorporated as a private limited company on March 14, 1997 with the name \u201cThe Muthoot Finance Private Limited\u201d under the Companies Act. Subsequently, by fresh certificate of incorporation dated May 16, 2007, its name was changed to \u201cMuthoot Finance Private Limited\u201d. The company was converted into a public limited company on November 18, 2008 with the name \u201cMuthoot Finance Limited\u201d and received a fresh certificate of incorporation consequent upon change in status on December 02, 2008 from the RoC.The company is the largest gold financing company in India in terms of loan portfolio. It provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short\u2013term liquidity requirements. The company\u2019s Gold Loan portfolio as of March 31, 2010 comprised about 2.8 million loan accounts in India that it serviced through 1,605 branches across 20 states and two union territories in India. According to the IMaCS Industry Report 2009, as of March 31, 2010 its branch network was the largest among gold loan NBFCs in India. It has since increased its branch network to 1,921 branches as of August 31, 2010, and used its branch network to serve an average of 53,989 customers per day in the month of August 2010. As of August 31, 2010, the company employed 12,220 persons in its operations.<\/p>\n

The company is a \u201cSystemically Important Non\u2013deposit taking NBFC\u201d headquartered in the southern Indian state of Kerala. The company issue secured non\u2013convertible debentures called \u201cMuthoot Gold Bonds\u201d on a private placement basis. Proceeds from the issuance of Muthoot Gold Bonds form a significant source of funds for their Gold Loan business. It also relies on bank loans and subordinated debt instruments as irs sources of funds. As of March 31, 2010, it had Rs 2,719.25 crore in outstanding Muthoot Gold Bonds and Rs 2,561.27 crore in other borrowings. The company also raises capital by selling a portion of its loan receivables under bilateral assignment agreements with various banks that purchase their portfolio primarily for meeting their priority sector lending commitments.<\/p>\n

\u00a0<\/p>\n

Objectives:<\/strong>– To calculate the beta of Muthoot Finance and findout its significance.<\/p>\n

Views and reviews:-<\/strong> let us not judge ourselves by the profit we make but by the trust and the confidence that people have in us. Let us\u00a0cherish and nurture that trust and ensure\u00a0that every person who deals with us deals with the confidence that he will not be misguided but his interests will be\u00a0carefully protected.\u00a0<\/p>\n

Shri M. George Muthoot<\/strong>
Founder Chairman – Banking
(1911-1993)<\/p>\n

\u00a0<\/strong><\/p>\n

Data collections:-<\/strong>Data is taken from 01-06-2022 to 31-07-2023 It has been downloaded from the NSE site ,then Fridays closing price was sorted and weekly returns of Nifty (i.e X) and Muthoot finance (i.e Y )Were calculated<\/p>\n

Data Analysis:- <\/strong>Equation \u201cy=0.055814-0.850149<\/p>\n

(tstat=3.029871982)<\/p>\n

N= 50,\u00a0 R2=0.1605, F= 9.180124<\/p>\n

The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of\u00a0 mutooth finance ltd. the positive sign means a positive relationship meaning if \u201cx\u201d rises \u201cy\u201d also rises. If \u201cx\u201d rises by 1 unit, \u201cy\u201d also rises by\u00a0 by 0.850149, \u201cn\u201d means there are 50 observations, and figures in brackets are tstat<\/sub> for \u201cb\u201d, so \u201cb\u201d is statistically significant at 5% \u201cb\u201d is not as Calculated tstat<\/sub> for b i.e. \u00a0is 3.029871982 higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2<\/sup> is 0.1605 means 16.05% of y is explained by x balance 85.95%. As the calculated value of F =9.180124 is more than the tabulated F (F 0.05,1DF,49DF) = 4.038, the overall model is statistically significant at the 5% level.<\/p>\n

So overall the model is statistically significant at the 5% level<\/p>\n

\u00a0<\/p>\n

Conclusion : <\/strong>The beta value for mutooth finance is 0.003933. Which is <1. So, it is good for long term investment.<\/p>\n

Refrence : <\/strong>muthootfinance.com<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Title \u2013 Relationship of\u00a0\u00a0 Muthoot\u00a0 Finance with Nifty 50 Author- Madhuri\u00a0\u00a0 ravindra\u00a0\u00a0 patil. (MMS First year\u00a0 ,Roll no.022107 Kohinoor Business School.Kurla. Introduction:-\u00a0 Muthoot Finance was originally incorporated as a private limited company on March 14, 1997 with the name \u201cThe Muthoot Finance Private Limited\u201d under the Companies Act. Subsequently, by fresh certificate of incorporation dated… Continue reading Relationship of Muthoot Finance with Nifty50<\/span><\/a><\/p>\n","protected":false},"author":138687,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-18429","post","type-post","status-publish","format-standard","hentry","category-management","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18429","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\/138687"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18429"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18429\/revisions"}],"predecessor-version":[{"id":18430,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18429\/revisions\/18430"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18429"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}