{"id":21271,"date":"2024-10-10T07:10:22","date_gmt":"2024-10-10T01:40:22","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21271"},"modified":"2024-10-10T07:10:22","modified_gmt":"2024-10-10T01:40:22","slug":"relationship-of-honda-india-power-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21271","title":{"rendered":"Relationship of Honda India Power Ltd. with Nifty 50"},"content":{"rendered":"<p><strong>Title:<\/strong> Relationship of Honda India Power Ltd. with Nifty 50<\/p>\n<p><strong>Author:<\/strong> Harsh Naik<\/p>\n<p>\u00a0<\/p>\n<p><strong>Introduction: <\/strong><\/p>\n<p>\u00a0Honda India Power Products Ltd. (HIPP), a subsidiary of Honda Motor Co. Japan, was founded in 1985. It manufactures power equipment like generators, water pumps, and engines, serving industries such as agriculture and construction. Company reported a revenue of \u20b91,116.89 crore for the financial year ending March 2024, with its stock rising by 69.03%.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Objective: <\/strong><\/p>\n<p>To find out Beta of Honda company and its significance.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Data Collection: <\/strong><\/p>\n<p>Data for Nifty 50 and Honda India Power Ltd was downloaded for period 01-05-2023 to 30-04-2024 from NSE site. Then we find out Friday closing prices for Nifty 50 and Honda Ltd., Weekly returns were calculated by the formula = (yt+1 \u2013 yt) \/ yt * 100. Weekly returns of Nifty 50 were termed as \u2018X\u2019 and weekly returns of Honda India Power Ltd were termed as \u2018Y\u2019. \u2018Y\u2019 was\u00a0regress\u00a0on\u00a0\u2018X\u2019.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Data Analysis: <\/strong><\/p>\n<p>Weekly return of Honda company= 0.29 + 0.45 * weekly return of Nifty 50\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 N= 48, R square= 0.01, F= 0.64, P value= 0.43<\/p>\n<p>The above equation shows the relationship between nifty 50 and Honda company.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Positive sign before the coefficient of Nifty 50 tells us that there is a positive relationship, if Nifty 50 rises by 1-unit, Honda Ltd will rise by <strong>0.45<\/strong> and vice versa. Figure in bracket is a T- Stats <strong>(0.80)<\/strong> for Beta and P value is <strong>0.43<\/strong>. Since the P value is greater than 0.05, the beta is not statistically significant. R Square is <strong>1%<\/strong> Honda\u2019s weekly return is explained by changes in the nifty 50. F is <strong>0.64 <\/strong>and P value for that is <strong>0.43<\/strong> Since the F Test and P value is greater than 0.05, the overall model is not statistically significant at\u00a0the\u00a05%\u00a0level.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Conclusion: <\/strong><\/p>\n<p>Beta is less than 1 and positive i.e. <strong>0.45<\/strong> means Honda India Power Ltd is good for long term investment.<\/p>\n<p>\u00a0<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Title: Relationship of Honda India Power Ltd. with Nifty 50 Author: Harsh Naik \u00a0 Introduction: \u00a0Honda India Power Products Ltd. (HIPP), a subsidiary of Honda Motor Co. Japan, was founded in 1985. It manufactures power equipment like generators, water pumps, and engines, serving industries such as agriculture and construction. Company reported a revenue of \u20b91,116.89&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=21271\">Continue reading <span class=\"screen-reader-text\">Relationship of Honda India Power Ltd. with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139539,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-21271","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\/21271","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\/139539"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21271"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21271\/revisions"}],"predecessor-version":[{"id":21272,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21271\/revisions\/21272"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21271"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}