{"id":18465,"date":"2023-08-24T19:54:37","date_gmt":"2023-08-24T14:24:37","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=18465"},"modified":"2023-08-24T19:54:37","modified_gmt":"2023-08-24T14:24:37","slug":"relationship-of-alkem-laboratories-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=18465","title":{"rendered":"Relationship of Alkem Laboratories with Nifty 50"},"content":{"rendered":"

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Relationship of Alkem Laboratories with Nifty 50<\/strong><\/p>\n

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Author<\/strong>: Akanksha palaye ( MMS \u201cB\u201d, \u00a0roll no. 222105) Kohinoor business school, kurla<\/p>\n

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Introduction:<\/strong><\/p>\n

Alkem Laboratories Limited is a prominent Indian pharmaceutical company established in 1973. Headquartered in Mumbai, it has become a leading player in the industry, specializing in the research, development, manufacturing, and distribution of pharmaceutical and healthcare products. With a global presence across various regions, Alkem offers a diverse portfolio of prescription medicines, generics, and branded formulations. Committed to quality and innovation, the company invests in research and adheres to international standards. Its dedication to corporate social responsibility and sustainability reflects its broader impact on society.<\/p>\n

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Objective :<\/strong> To calculate Beta of Alkem laboratories & find out its significane its significance<\/p>\n

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Views and Reviews: <\/strong><\/p>\n

Basudeo N. Singh, Executive Chairman, stated that \u201cThe COVID-19 pandemic has led to a health crisis and economic shut downs unprecedented in recent history. While causing immense devastation and disruption, the pandemic is also a powerful reminder of the invaluable role of the pharmaceutical sector in saving lives and enhancing the quality of life for millions. for even as the world came to a brief standstill, healthcare companies stepped up to deliver on their responsibilities of making medicines available to patients.at Alkem, we are proud and humbled to belong to this sector, which has risen to fight the pandemic, ensuring continuity of patient care despite the difficult situation.\u201d<\/p>\n

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Mr. Sandeep Singh, Managing Director of Alkem\u00a0 laboratories ltd, expressed his enthusiasm , \u201cThe global pharmaceutical industry is undergoing a rapid evolution which can be attributed to an array of policy and regulatory changes both in India and globally. While in India, NPPA led price cuts, demonetisation and GST have been the main causes for a reversal of growth rate, pricing pressures from key markets such as the US as well as global regulatory interventions have posed additional challenges. However, vast opportunities await the industry after it has prepared itself for these challenges. To deliver a sustainable growth amidst this evolving landscape, one needs to invest ahead of the curve to not only build upon one\u2019s existing strengthens but also to create new levers of growth.<\/p>\n

Data Collection:<\/strong><\/p>\n

We collected weekly closing prices from Nifty.com from\u00a0 01-07-2022 to 30-06-2023. Then, we calculated the weekly returns for both Nifty 50 (X) and Alkem Laboratories’ equity (Y) using the Friday closing prices. This helped us understand how both Nifty 50 and Alkem Laboratories performed each week during this time.<\/p>\n

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Data analysis:<\/strong><\/p>\n

\u00a0 We can write the equation in the form of Y = a + bx<\/p>\n

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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 = 0.193 + 36.13x<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(1.440)<\/p>\n

\u00a0N=50\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

\u00a0R2 <\/sup>= 0.0414\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

\u00a0F = 2.074<\/p>\n

Interpretation : The above Equation shows the relationship between the Nifty 50 (X) with\u00a0 the Alkem Laboratories (Y). The positive \u00a0sign means the positive relation. It means that \u00a0the \u00a0nifty 50 stock rises then Alkem laboratories stock also rises and vice versa. If nifty 50 rises by 1 unit Alkem laboratories rises \u00a0by 36.13 units. \u00a0N means there are 50 observation. \u00a0T is 1.440, which is less\u00a0 than tabulated T (t..05,48 <\/sub>2.0106). T stat for b\u00a0 is statistically not significant. \u00a0R2 <\/sup>\u00a0is 0.0414 which indicates that the \u00a04.14% of Y is explained by X , balance \u00a095.86% is error due to the variable which is not in model. . \u00a0F is 2.074 which is less than the\u00a0 table value ( F.05, 1,48<\/sub> \u00a04.0420). So, overall the model is not statistically significant\u00a0 @5% level of significance.<\/p>\n

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Conclusion<\/strong><\/p>\n