{"id":19541,"date":"2024-01-01T18:33:11","date_gmt":"2024-01-01T13:03:11","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19541"},"modified":"2024-01-01T18:33:11","modified_gmt":"2024-01-01T13:03:11","slug":"relationship-of-kajaria-ceramics-ltd-with-nifty50-3","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19541","title":{"rendered":"Relationship of Kajaria Ceramics Ltd. with Nifty50."},"content":{"rendered":"

\"\"<\/a><\/p>\n

Nifty50.<\/strong><\/h1>\n

Author:<\/u><\/strong> Kinshul Jain<\/p>\n

Introduction:<\/u><\/strong> Kajaria Ceramics Limited\u00a0<\/strong>Is the Largest manufacturers of ceramic tiles in India. It was founded in 1985 and has been established for more than 35 years in the ceramic Industry<\/p>\n

It is the\u00a0leading manufacturer\u00a0<\/strong>of the tile world. It has many different manufacturing plants across India. It is using Modern technology machinery and producing innovative products.\u00a0\u00a0<\/p>\n

It has an\u00a0Annual Production capacity<\/strong>\u00a0of 73 mn square meters. There are a total\u00a0of 8 manufacturing plants\u00a0<\/strong>across Sikandrabad (Uttar Pradesh), galipur and malootana (Rajasthan), Vijayawada, and Srikalahasti (Andhra Pradesh), Morbi 3 plants (Gujarat).<\/p>\n

Objectives:<\/u><\/strong> To calculate beta and find its significance.<\/p>\n

Views & Reviews<\/u><\/strong>:<\/u> Kajaria\u2019s share price has grown at ~9% CAGR over<\/p>\n

the past five years (from ~| 671 in November, 2017 to ~| 1040 in November, 2022).<\/p>\n

\uf0b7 Kajaria is a solid play on tiles segment with brand leadership reflecting in<\/p>\n

superior realisations & margins. We believe gas price uncertainty is fully<\/p>\n

built in and margins will improve\u00a0from\u00a0H2FY23.<\/p>\n

Data collection: <\/u><\/strong><\/p>\n

Data is downloaded from https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=KAJARIACER<\/a> https:\/\/www.niftyindices.com\/reports\/historical-data<\/a> for the date- 1\/10\/2022-30\/9\/2023<\/p>\n

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

Regression Equation<\/strong>: Return of Kajari ceramics ltd = -0.3679+0.5417(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 = 0.04656\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1.5150)<\/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 = 2.2952<\/p>\n

Interpretation: <\/strong>In the above equation shows the relationship between Nifty 50 and Kajaria ceramics limited. \u00a0Kajaria ceramics limited is dependent variable and Return of Nifty 50 is independent variable. positive sign means if Nifty 50 price rises, kajaria ceramics limited share price rise. If Nifty 50 price rises 1 unit, Kajaria ceramics limited share price will rise by 0.5417 unit & vice versa. No of observation are 49. Figure which is written in bracket 1.5150 is t test for b. The P value for which is 0.1364 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.04656 which means 4.66% of variances in kajaria ceramics limited share price are explained by Nifty 50 in other words\u00a0 is error means 95.34% iis due to the variables which are not in the model. F is 2.2952. Overall model is statistically insignificant at 5% level.<\/p>\n

Conclusion: <\/u><\/strong>Beta is -0.2679 is less than 1 it means kajaria ceramics limited is good for long term investment.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

References: <\/u><\/strong><\/p>\n

https:\/\/www.icicidirect.com\/mailimages\/IDirect_KajariaCeramics_Q2FY23.pdf<\/a><\/p>\n

https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=KAJARIACER<\/a><\/p>\n

https:\/\/www.niftyindices.com\/reports\/historical-data<\/a><\/p>\n

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

Nifty50. Author: Kinshul Jain Introduction: Kajaria Ceramics Limited\u00a0Is the Largest manufacturers of ceramic tiles in India. It was founded in 1985 and has been established for more than 35 years in the ceramic Industry It is the\u00a0leading manufacturer\u00a0of the tile world. It has many different manufacturing plants across India. It is using Modern technology machinery… Continue reading Relationship of Kajaria Ceramics Ltd. with Nifty50.<\/span><\/a><\/p>\n","protected":false},"author":139181,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-19541","post","type-post","status-publish","format-standard","hentry","category-investing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19541","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\/139181"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19541"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19541\/revisions"}],"predecessor-version":[{"id":19542,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19541\/revisions\/19542"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19541"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}