Author:<\/u><\/strong> Lance Shah.<\/p>\n Introduction:<\/u><\/strong> Larsen & Toubro Limited (L&T) is a prominent Indian multinational conglomerate founded in 1938. Renowned for engineering, construction, and technology solutions, L&T operates globally with diversified interests in sectors like infrastructure, information technology, and financial services. The company emphasizes innovation, sustainability, and social responsibility in its business practices..<\/p>\n Objectives:<\/u><\/strong> To calculate beta and find its significance.<\/p>\n Views & Reviews:<\/u><\/strong> Larsen & Toubro Ltd past 10-year financial track record analysis suggests it’s an average-quality company. Valuation ratios indicate it is currently overvalued. Despite being in the overvalued zone, the Price Trend analysis suggests a strong short-term rise. Potential investors should consider both quality and valuation factors before deciding to invest.<\/p>\n Data collection: <\/u><\/strong><\/p>\n Data is downloaded from https:\/\/www.nseindia.com\/reports-indices-historical-index-data<\/a> , https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=LT<\/a> for 1-12-2022 to 30-11-2023 period.<\/p>\n Data analysis:<\/u><\/strong><\/p>\n Regression Equation<\/strong>: Return of Britannia = 0.6763+0.9388(Return of Nifty 50)<\/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\u00a0\u00a0\u00a0\u00a0 R Square = 0.2279\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(3.7251)<\/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\u00a0\u00a0\u00a0\u00a0 F = 13.8763<\/p>\n Interpretation: <\/strong>In the above equation shows the relationship between Nifty 50 and Larsen & Toubro Ltd. share. Return of Larsen & Toubro Ltd. is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty 50 price rises, Larsen & Toubro Ltd. share price rises. If Nifty 50 price rises 1 unit, Larsen & Toubro Ltd. share price will rise by 0.9388 unit & vice versa. No of observation are 49. Figure which is written in bracket 3.7251 is t test for b. The P value for which is 0.0005 which means Nifty 50 is statistically significant at 5% level. R square is 0.2279 which means 22.79% of variances in Larsen & Toubro Ltd. share price are explained by Nifty 50 in other words 77.21% is error means 77.21%<\/p>\n \u00a0is due to the variables which are no in the model. F is 13.8763. Overall model is statistically significant at 5% level.<\/p>\n Conclusion: <\/u><\/strong>Beta is 0.6793 is less than 1 it means Larsen & Toubro Ltd. is good for long term investment.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n References: <\/u><\/strong><\/p>\n https:\/\/www.nseindia.com\/reports-indices-historical-index-data<\/a> https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=LT<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Title: Relationship of Larsen & Toubro Ltd. with Nifty50. Author: Lance Shah. Introduction: Larsen & Toubro Limited (L&T) is a prominent Indian multinational conglomerate founded in 1938. Renowned for engineering, construction, and technology solutions, L&T operates globally with diversified interests in sectors like infrastructure, information technology, and financial services. The company emphasizes innovation, sustainability, and… Continue reading Relationship of Larsen & Toubro Ltd. with Nifty50.<\/span><\/a><\/p>\n","protected":false},"author":139154,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19477","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\/19477","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\/139154"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19477"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19477\/revisions"}],"predecessor-version":[{"id":19478,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19477\/revisions\/19478"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19477"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}