Introduction: –<\/p>\n
Sundaram Finance Limited is an Indian financial and investment service provider, based in Chennai. The company offers consumer loans, wealth management, commercial finance, investment banking, private equity, treasury advisory, credit cards and infrastructure finance, among others.<\/p>\n
Sundaram Finance Limited was established in 1954. The company is registered with the Reserve Bank of India (RBI) as a Systematically Important Deposit Accepting Non-Banking Financial Company. As of December 2017, the company has a market capitalisation of \u20b926,000 crore and operates through more than 640 branches across the country.<\/p>\n
Objective: –\u00a0<\/p>\n
To Calculate Beta(\u03b2) and its significance of the equity stock of Sundaram Finance Ltd.<\/p>\n
Reviews: –<\/p>\n
Sundaram Finance\u00a0has TTM P\/E ratio\u00a022.46\u00a0as compared to the sector P\/E of\u00a025.85.There are\u00a010\u00a0analysts who have initiated coverage on\u00a0Sundaram Finance. There are\u00a04\u00a0analysts who have given it a strong buy rating &\u00a02\u00a0analysts have given it a buy rating.\u00a01\u00a0analysts have given the stock a sell rating.<\/p>\n
The company posted a net profit of\u00a0365.42\u00a0Crores in its last quarter.<\/p>\n
Listed peers of\u00a0Sundaram Finance\u00a0include\u00a0Muthoot Finance\u00a0(-0.27%),\u00a0One 97 Communications\u00a0(-1.16%),\u00a0Sundaram Finance\u00a0(-1.74%) etc.<\/p>\n
\u00a0<\/p>\n
Data Collection: –<\/p>\n
Data from nseindia.com covering the period from January 11, 2022, to October 31, 2023, was acquired for Nifty and Sundaram Finance Ltd. Subsequently, all columns, except for date and closing price, were removed from both datasets. The closing prices on Fridays were identified for Nifty and Sundaram Finance Ltd. The weekly returns for Nifty (denoted as X) and Equity (denoted as Y) were then computed. A linear regression analysis was performed on the weekly returns of x<\/p>\n
Data Analysis: –<\/p>\n
The regression equation has the form:<\/p>\n
Y = a + b*X<\/p>\n
Where, Y is the dependent variable,\u00a0<\/p>\n
\u00a0 X is the independent variable,\u00a0<\/p>\n
\u00a0 a is the intercept,<\/p>\n
\u00a0 b is the slope.<\/p>\n
In our case Sundaram Finance Ltd. is the dependent variable and Nifty 50 is the independent variable.<\/p>\n
Intercept, a = 526055.9974<\/p>\n
Slope, b = -0.148829357<\/p>\n
R Square = 0.234000834<\/p>\n
F = 14.35776915<\/p>\n
So, the regression equation is –\u00a0<\/p>\n
Y (Sundaram Finance Ltd..) = 526055.9974\u22120.148829357*X (Nifty)<\/p>\n
The analysis suggests a modest relationship between the variables, with a multiple R value of 0.48. However, only 23% of the variability in the dependent variable is explained by the independent variable, as reflected in the R-squared value of 0.23. The regression equation, with an intercept of 526055.9974 and a coefficient of -0.148829357 for nifty, indicates a negative association between the variables. The regression is statistically significant (p-value = 0.000429478), but caution is advised due to the small effect size and the broad confidence interval for nifty 1’s coefficient (-0.227845729 to -0.069812985). In summary, while a relationship exists, its strength and precision are limited.<\/p>\n
\u00a0<\/p>\n
Conclusion: –<\/p>\n
Beta is 0.148829357 which is less than 1, it means it is better for long-term investment.<\/p>\n
\u00a0<\/p>\n
Reference: –<\/p>\n
https:\/\/www.nseindia.com\/<\/p>\n
https:\/\/www.sundaramfinance.in\/<\/p>\n
https:\/\/www.livemint.com\/market\/market-stats\/stocks-sundaram-finance-share-price-nse-bse-s0003716s<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction: – Sundaram Finance Limited is an Indian financial and investment service provider, based in Chennai. The company offers consumer loans, wealth management, commercial finance, investment banking, private equity, treasury advisory, credit cards and infrastructure finance, among others. Sundaram Finance Limited was established in 1954. The company is registered with the Reserve Bank of India… Continue reading Relation between Nifty and Sundaram Finance Limited<\/span><\/a><\/p>\n","protected":false},"author":139219,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19678","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\/19678","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\/139219"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19678"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19678\/revisions"}],"predecessor-version":[{"id":19679,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19678\/revisions\/19679"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19678"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}