{"id":21203,"date":"2024-10-10T07:09:43","date_gmt":"2024-10-10T01:39:43","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21203"},"modified":"2024-10-10T07:09:43","modified_gmt":"2024-10-10T01:39:43","slug":"relationship-of-kpr-mill-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21203","title":{"rendered":": Relationship of KPR Mill Ltd. With Nifty-50."},"content":{"rendered":"<p><strong><u>Author:<\/u><\/strong> Khushi Mittal<\/p>\n<p><strong><u>Introduction:<\/u><\/strong><\/p>\n<p>KPR Mill Limited (formerly known as KPR Cotton Mills Pvt, Ltd.) was\u00a0originally incorporated on March 19, 2003.KPR Mill Limited is\u00a0a vertically integrated textile company in India that produces yarn, fabrics, garments, and sugar.<\/p>\n<ul>\n<li>As of October 7, 2024, KPR Mill&#8217;s share price was \u20b9918.00 on the NSE.\u00a0<\/li>\n<li>In the last three years, KPR Mill&#8217;s share price has increased by 27.33%.\u00a0<\/li>\n<li>In the last five days, KPR Mill&#8217;s share price has decreased by 2.70%<\/li>\n<\/ul>\n<p><strong><u>OBJECTIVE:<\/u><\/strong><\/p>\n<p>To find out the beta value of KPR Mill ltd and its significance.<\/p>\n<p><strong><u>Data Collection:<\/u><\/strong><\/p>\n<p>The data of KPR Mill 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<p>Data was manipulated to find Friday closing prices.<\/p>\n<p>The weekly returns of KPR Mill Ltd and the weekly returns of Nifty 50 were calculated.<\/p>\n<p>The weekly return of Nifty-50 is X and the weekly return of KPR Mill Ltd is Y.<\/p>\n<p>Lastly, the weekly returns of KPR Mill Ltd (Y) were regressed on weekly returns of\u00a0Nifty\u00a050\u00a0(X).<\/p>\n<p><strong><u>Data Analysis:<\/u><\/strong><\/p>\n<p><strong>Equation<\/strong><\/p>\n<p>Weekly Returns of KPR Mill Ltd= -0.87 -0.21 weekly Return of Nifty-50<\/p>\n<p>\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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 t= (-0.51)<\/p>\n<p><strong><u>N (no. of observation<\/u><\/strong>) = 48<\/p>\n<p><strong><u>R<sup>2\u00a0 <\/sup>= <\/u><\/strong>0.01<\/p>\n<p><strong><u>F-Stat<\/u><\/strong><strong>= <\/strong>0.26<\/p>\n<p><strong><u>P-Value<\/u><\/strong>= 0.62<\/p>\n<p>The above equation depicts the relationship between the\u00a0weekly returns of KPR Mill Ltd and the\u00a0weekly returns of Nifty-50. The plus (+) sign before the coefficient of Nifty-50 tells that if Nifty-50 rises, then company value rises too, and vice-versa.<\/p>\n<p>If Nifty-50 rises by 1 unit, the company value will rise by 0.92 units. The figure in the bracket is t-stat for beta and the p-value for which is 0.219, which is less than 0.5, meaning beta is statistically significant at 5 percent levels of significance.<\/p>\n<p>R<sup>2 <\/sup>value is 0.01, meaning 99.99 percent of KPM Mill ltd returns are explained by Nifty-50, the balance 0.01 percent are maybe due to fundamentals.<\/p>\n<p>F-stat value is 0.26 and the p-value is 0.62, meaning that the overall model is statistically significant.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p>The beta value for weekly returns of Nifty-50 is less than 1 (\u03b2<sub>1<\/sub> = -0.21), signifying that the company i.e., KPM Mill Ltd, should be avoid for the Investment.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Conclusion<br \/>\nThe beta value for weekly returns of Nifty-50 is less than 1 (\u03b21 = -0.21), signifying that the company i.e., KPM Mill Ltd, should be avoid for the Investment<\/p>\n","protected":false},"author":139514,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-21203","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\/21203","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\/139514"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21203"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21203\/revisions"}],"predecessor-version":[{"id":21204,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21203\/revisions\/21204"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21203"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}