{"id":21183,"date":"2024-10-10T07:10:53","date_gmt":"2024-10-10T01:40:53","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21183"},"modified":"2024-10-10T07:10:53","modified_gmt":"2024-10-10T01:40:53","slug":"relationship-of-pidilite-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21183","title":{"rendered":"Relationship of Pidilite Ltd with Nifty-50"},"content":{"rendered":"

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Title<\/strong>: Relationship of Pidilite Ltd with Nifty-50<\/p>\n

Author<\/strong>: Prathamesh Shailesh Naidu<\/p>\n

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Introduction<\/h1>\n

Pidilite Industries Ltd is an industry leader in adhesives and sealants, with strong, water-based, solvent-based, and hot melt technologies as its USP. As of today, 7th<\/sup> October 2024, the share price of Pidilite fell as Sensex dropped, with a total traded value of INR 2.49 lakhs.\u00a0 It has a market capitalization value of INR 1.6 trillion with EBITA equal to INR 2,847 crores. <\/p>\n

Objective<\/h1>\n

To find out the beta value of Pidilite Ltd and its significance.<\/p>\n

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Data Collection<\/h1>\n

The data of Pidilite Ltd and Nifty 50, from the period 01.05.2023 to 30.04.2024, was downloaded from NSE\u2019s official website nse.india.<\/p>\n

Data was manipulated to find Friday closing prices.<\/p>\n

The weekly returns of Pidilite Ltd and the weekly returns of Nifty 50 were calculated.<\/p>\n

The weekly return of Nifty-50 is X and the weekly return of Pidilite Ltd is Y.<\/p>\n

Lastly, the weekly returns of Pidilite Ltd (Y) were regressed on weekly returns of Nifty 50 (X).<\/p>\n

Data Analysis<\/h1>\n

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

Weekly Returns of Pidilite Ltd = -0.21 + 0.96 Weekly Returns of Nifty-50<\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n
\n

N (no. of observations)<\/strong><\/p>\n<\/td>\n

\n

49<\/p>\n<\/td>\n<\/tr>\n

\n

R2<\/sup><\/strong><\/p>\n<\/td>\n

\n

0.95<\/p>\n<\/td>\n<\/tr>\n

\n

F-stat<\/strong><\/p>\n<\/td>\n

\n

842.5<\/p>\n<\/td>\n<\/tr>\n

\n

p-value<\/strong><\/p>\n<\/td>\n

\n

0.00<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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The above equation depicts the relationship between the\u00a0weekly returns of Pidilite Ltd and the\u00a0weekly returns of Nifty-50. The plus (+) sign before the coefficient of Nifty-50 tells that if Nifty-50 rises, Pidilite\u2019s value rises too, and vice-versa.<\/p>\n

If Nifty-50 rises by 1 unit, Pidilite\u2019s value will rise by 0.96 units. The figure in the bracket is t-stat for beta and the p-value for which is 0.00, which is less than 0.5, meaning beta is statistically significant at 5 percent levels of significance.<\/p>\n

R2 <\/sup>value is 0.95, meaning 95 percent of Pidilite\u2019s returns are explained by Nifty-50, the balance 5 percent are maybe due to fundamentals.<\/p>\n

F-stat value is 842.5 and the p-value is 0.00, meaning that the overall model is statistically significant.<\/p>\n

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Conclusion<\/h1>\n

The beta value for weekly returns of Nifty-50 is less than 1 (\u03b21<\/sub> = 0.96), signifying that the company i.e., Pidilite Ltd, is good for long-term investments.<\/p>\n

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\u00a0 \u00a0 Title: Relationship of Pidilite Ltd with Nifty-50 Author: Prathamesh Shailesh Naidu \u00a0 \u00a0 Introduction Pidilite Industries Ltd is an industry leader in adhesives and sealants, with strong, water-based, solvent-based, and hot melt technologies as its USP. As of today, 7th October 2024, the share price of Pidilite fell as Sensex dropped, with a… Continue reading Relationship of Pidilite Ltd with Nifty-50<\/span><\/a><\/p>\n","protected":false},"author":139468,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-21183","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21183","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\/139468"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21183"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21183\/revisions"}],"predecessor-version":[{"id":21184,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21183\/revisions\/21184"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21183"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}