{"id":19656,"date":"2024-01-05T14:38:15","date_gmt":"2024-01-05T09:08:15","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19656"},"modified":"2024-01-05T14:38:18","modified_gmt":"2024-01-05T09:08:18","slug":"comparison-of-apollo-tyres-with-nifty","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19656","title":{"rendered":"Comparison of Apollo Tyres with Nifty"},"content":{"rendered":"

Title- Comparison of Apollo Tyres with Nifty<\/strong><\/p>\n

Author- Aakash Suhas Yeole<\/strong><\/p>\n

Batch- F3<\/strong><\/p>\n

Roll No-<\/strong> 21230023119<\/strong><\/p>\n

\u00a0<\/p>\n

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

Apollo Tyres Limited<\/strong>\u00a0is an Indian multinational tyre manufacturing company headquartered in\u00a0Gurgaon<\/a>,\u00a0Haryana<\/a>. It was incorporated in 1972, and its first plant was commissioned in\u00a0Perambra<\/a>\u00a0in\u00a0Chalakudy<\/a>,\u00a0Kerala<\/a>. The company now has five manufacturing units in India, one in the Netherlands]<\/sup><\/a>\u00a0and one in Hungary.\u00a0It has a network of nearly 5,000 dealerships in India, of which over 2,500 are exclusive outlets.<\/p>\n

The company generates 69% of its revenues from India, 26% from Europe and 5% from other countries.<\/p>\n

Apollo announced its entry into the two-wheeler tyre segment with contract manufacturing in March 2016.<\/p>\n

History<\/u><\/strong><\/p>\n

Apollo Tyres Ltd. was incorporated on 28 September 1972 in India as a Public Limited Company and obtained certificate of Commencement of Business on 24 October 1972. The company was promoted by Bharat Steel Tubes, Ltd., Raunaq International Pvt. Ltd., Raunaq & Co. Pvt. Ltd., Raunaq Singh, Mathew T. Marattukalam and Jacob Thomas.\u00a0In 1975, the company made its\u00a0Initial public offer<\/a>\u00a0of equity shares and its first manufacturing facility was commissioned in\u00a0Perambra<\/a>\u00a0Plant,\u00a0Thrissur<\/a>,\u00a0Kerala<\/a>, India in 1977,\u00a0followed by its 2nd plant at Limda,\u00a0Gujarat, India<\/a> in 1991. The company acquired Premier Tyres Limited- PTL in 1995, which became its 3rd plant at\u00a0Kochi<\/a>,\u00a0Kerala, India<\/a>.\u00a0In 2008, it started a new plant at\u00a0Chennai<\/a>,\u00a0Tamil Nadu, India<\/a>.\u00a0A year later in 2009, the company acquired the Netherlands-based tyre maker\u00a0Vredestein Banden B.V.<\/a>\u00a0(VBBV) for an undisclosed sum.<\/p>\n

The company focused on the production of truck tyres in India and introduced its first truck tyre, Rajdhani in India.\u00a0The company expanded its operation across India and in 1996, it expanded operations outside India by acquiring\u00a0Dunlop<\/a>‘s Africa operations.\u00a0In 2013, it disposed of the Dunlop brand in Africa along with most of the South African operation in a sale to\u00a0Sumitomo Rubber Industries<\/a>\u00a0of Japan.\u00a0The very same year, it started its Global R&D Centre, Europe in Enschede, the Netherlands.<\/p>\n

In 2015, Apollo Tyres bought Germany’s Reifencom tyre distributor for \u20ac45.6 million.\u00a0It shifted its corporate office for Europe region to Amsterdam from Enschede, the Netherlands and opened a Global R&D Centre, Asia in\u00a0Chennai<\/a>, India a few months later.<\/p>\n

In 2016, the company signed an MoU with the Government of Andhra Pradesh to set up a new factory in the state.\u00a0On 9 January 2018, the\u00a0Chief Minister of Andhra Pradesh<\/a>,\u00a0N Chandrababu Naidu<\/a>\u00a0laid the foundation stone for Apollo Tyres’ \u20b91,800-crore tyre factory in\u00a0Andhra Pradesh<\/a>. The plant will come up over a 200-acre<\/a>\u00a0site in Chinnapanduru village near\u00a0Sri City<\/a>\u00a0in\u00a0Tirupati district<\/a>\u00a0and produce passenger car radial (PCR) tyres with an initial capacity of 55\u00a0lakh<\/a>\u00a0(5.5 million) tyres per year and also truck bus radial (TBR) tyres and will serve both domestic and export markets.<\/p>\n

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

Data is carried from NSE India site.<\/p>\n

Friday closing price of NIFTY50 are followed.<\/p>\n

The weekly return of Apollo Tyres are followed<\/p>\n

The weekly closing returns of Nifty50 are considered X variable, and the weekly closing returns of Apollo Tyres are considered Y variable.<\/p>\n

Data collection is done from 1st<\/sup> October 2022 to 30th<\/sup> September 2023.<\/p>\n

\u00a0<\/p>\n

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

The Regression equation Y=0.40723 + 1.05163 (X) Nifty50<\/p>\n

The above equation shows the relationship between APOLLO TYRES weekly closing return and Nifty50 weekly closing return.<\/p>\n

R-Square = 0.18%<\/p>\n

There will be a 0.18% change in APOLLO TYRES due to Nifty50.<\/p>\n

Beta= 1.05<\/p>\n

P-Value= 0.0024<\/p>\n

F= 10.30<\/p>\n

T-Stat= 3.21.<\/p>\n

Nifty rises by one rupee then Equity will rise by 1 rupee & 05 paise. t-stat for b (co-efficient of Nifty) is 3.21 and the p-value is 0.00, meaning Nifty is statistically significant for Equity at a 17.97% level. Number of observations are 49. R squared is 0.1797, which means 17% of the change in Equity is explained by Nifty, which means 83% is the error due to variables, which are not included in the model. F is\u00a0 and the p-value is 0.024, which means the overall model is statistically significant at a 0.24% level.<\/p>\n

\u00a0<\/p>\n

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

Beta is 1.05<\/p>\n

So Beta is 1.05 which s greater than 1, it is advisable to invest in short term.<\/p>\n

\u00a0<\/p>\n

Reference:<\/p>\n

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

https:\/\/www.nseindia.com\/<\/a><\/p>\n

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

https:\/\/en.wikipedia.org\/wiki\/Apollo_Tyres<\/a><\/p>\n

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Title- Comparison of Apollo Tyres with Nifty Author- Aakash Suhas Yeole Batch- F3 Roll No- 21230023119 \u00a0 Introduction Apollo Tyres Limited\u00a0is an Indian multinational tyre manufacturing company headquartered in\u00a0Gurgaon,\u00a0Haryana. It was incorporated in 1972, and its first plant was commissioned in\u00a0Perambra\u00a0in\u00a0Chalakudy,\u00a0Kerala. The company now has five manufacturing units in India, one in the Netherlands]\u00a0and one… Continue reading Comparison of Apollo Tyres with Nifty<\/span><\/a><\/p>\n","protected":false},"author":139217,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19656","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\/19656","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\/139217"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19656"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19656\/revisions"}],"predecessor-version":[{"id":19657,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19656\/revisions\/19657"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19656"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}