{"id":22980,"date":"2025-12-16T17:05:32","date_gmt":"2025-12-16T11:35:32","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=22980"},"modified":"2025-12-16T17:05:32","modified_gmt":"2025-12-16T11:35:32","slug":"relation-of-nifty-50-with-ultratech-cement-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22980","title":{"rendered":"Relation of Nifty 50 with UltraTech Cement Limited"},"content":{"rendered":"

Title: Relation of Nifty 50 with <\/span><\/b>UltraTech Cement Limited<\/span><\/b><\/p>\n

Author: Upanshu Garg<\/span><\/p>\n

Introduction:<\/span><\/b>
<\/span>UltraTech Cement Limited is the cement flagship company of the\u00a0<\/span>Aditya Birla Group<\/span><\/a>. A\u00a0USD 8.9 billion building solutions powerhouse, UltraTech is the largest manufacturer of grey cement and ready-mix concrete (RMC) and one of the largest manufacturers of white cement in India. It is the second largest cement company globally by capacity and the largest by sales volume (excluding China). <\/span><\/p>\n

Objective:<\/span><\/b><\/p>\n

To calculate Beta of <\/span>UltraTech Cement Limited<\/span> with respect to Nifty 50 and observe its statistical significance.<\/span><\/p>\n

Literature Review:<\/span><\/b><\/p>\n

NIFTY 50 Shariah Scrips \u2013 A Beta Analysis<\/span><\/b><\/p>\n

The literature on Shariah-compliant investing highlights the use of beta to assess systematic risk within ethically screened portfolios. Prior studies indicate that Shariah screening often reduces financial risk due to lower leverage constraints. This study analyses beta values of NIFTY 50 Shariah stocks and finds noticeable variation across scrips, suggesting that Shariah-compliant equities are not uniformly low-risk. The findings support the relevance of conventional risk measures in evaluating Shariah-compliant portfolios and contribute to integrating Islamic finance with mainstream portfolio analysis.<\/span><\/p>\n

Financial Performance of Cement Companies in India<\/span><\/b><\/p>\n

Prior literature on financial performance analysis emphasizes the use of ratio analysis to evaluate liquidity, profitability, solvency, and efficiency across firms. This study conducts a comparative analysis of Ultratech Cement Limited and OCL India Limited using key financial ratios to assess operational and financial performance. Consistent with earlier studies, the findings highlight differences in profitability and efficiency driven by scale, cost management, and financial structure. The study reinforces the relevance of ratio-based analysis as an effective tool for evaluating firm-level performance within capital-intensive industries such as cement manufacturing.<\/span><\/p>\n

Data Collection:<\/span><\/b><\/p>\n

Historical data for <\/span>UltraTech Cement Limited<\/span> and Nifty50 were downloaded for the period from 01-12-2024 to 30-11-2025 from www.nseindia.com. Friday closing prices and weekly returns were calculated, where Nifty50 Weekly Returns was treated as the independent variable (X) and <\/span>UltraTech Cement Limited Weekly Returns<\/span> as the dependent variable (Y). A regression analysis was conducted on this data i.e. Y was regressed on X.<\/span><\/p>\n

Data Analysis:<\/span><\/b><\/p>\n

Equation of Regression: <\/span>UltraTech Cement Limited (Y)<\/span> = 1.203 * Nifty50 (X) – 0.002<\/span><\/p>\n

tStat = 6.089, N (No. of Observations) = 48, R^2 = 0.446, F Statistic = 37.08, p-value = 0<\/span><\/p>\n

The regression equation above describes the relationship between Weekly Return of Nifty 50 (X) and of UltraTech Cement Limited share price (Y). Positive sign of coefficient of X means that there is direct relationship. If weekly price of Nifty 50 rises by 1%, then the weekly price of <\/span>UltraTech Cement Limited will rise by 1.203% and vice versa. t-Stat for Beta (<\/span>coefficient of Weekly Return of Nifty (X)<\/span>) is 6.089, p-value is 0 which is less than 0.01, which means that Beta is statistically significant at 1% level. Number of observations is 48, R^2 is 0.446, which means that 44.6% of variations in Weekly Returns of UltraTech Cement Limited (Y) are explained by <\/span>Weekly Return of Nifty (X) while the remaining 55.4% is attributed to other factors not included in the model such as fundamentals of equity which means that this is a good sign since Nifty index influence is less and fundamentals of company are strong. F-Stat is = 37.08 and p-value is 0, which means that overall model is statistically significant at 1% level.<\/span><\/p>\n

Conclusion:<\/span><\/b><\/p>\n

Since UltraTech Cement\u2019s beta is = 1.203, which is more than 1, invest in this company for short term if Nifty is expected to rise.<\/span><\/p>\n

Reference:<\/span><\/b><\/p>\n

Patel, A. and Shah, M. (2018) \u2018NIFTY 50 Shariah scrips \u2013 a beta analysis\u2019, GAP Bodhitaru: A Global Journal of Humanities<\/i>, 1(2), pp. 36\u201346.<\/span><\/p>\n

Sumathi, N. and Jothi, K. (2016) \u2018A study on financial performance of cement companies in India with reference to Ultratech Cement Limited and OCL India Limited \u2013 a comparative analysis\u2019, International Journal for Research in Applied Science and Engineering Technology<\/i>, 4(3), pp. 147\u2013150.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relation of Nifty 50 with UltraTech Cement Limited Author: Upanshu Garg Introduction:UltraTech Cement Limited is the cement flagship company of the\u00a0Aditya Birla Group. A\u00a0USD 8.9 billion building solutions powerhouse, UltraTech is the largest manufacturer of grey cement and ready-mix concrete (RMC) and one of the largest manufacturers of white cement in India. It is… Continue reading Relation of Nifty 50 with UltraTech Cement Limited<\/span><\/a><\/p>\n","protected":false},"author":139873,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22980","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\/22980","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\/139873"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22980"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22980\/revisions"}],"predecessor-version":[{"id":22981,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22980\/revisions\/22981"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22980"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}