{"id":23272,"date":"2025-12-22T11:14:07","date_gmt":"2025-12-22T05:44:07","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23272"},"modified":"2025-12-22T11:14:07","modified_gmt":"2025-12-22T05:44:07","slug":"relationship-of-nifty-50-with-voltamp-transformers-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23272","title":{"rendered":"Relationship of Nifty 50 with Voltamp Transformers Limited"},"content":{"rendered":"<p class=\"MsoNormal\" style=\"text-align: justify\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Introduction:<\/span><\/i><br \/><\/b>Voltamp Transformers Limited, established in 1961 and headquartered in Vadodara, Gujarat, is a premier manufacturer of electrical transformers in India. The company specializes in a wide range of oil-filled and dry-type power and distribution transformers, catering to diverse sectors including Power, Steel, Cement, Oil &amp; Gas, and Green Energy. With over six decades of expertise and more than 80,000 installations globally, Voltamp is a debt-free, professionally managed entity listed on the BSE and NSE. It is recognized for its strong focus on energy-efficient products and maintains a significant market share in the Indian transformer industry.<\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Objective:<\/span><\/i><br \/><\/b>The primary objective of this study is to analyze the systematic risk of Voltamp Transformers Limited relative to the broader market (Nifty 50 Index). Specifically, the study aims to:<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\">Calculate the Beta (\u03b2) coefficient of Voltamp Transformers Ltd.<\/li>\n<li class=\"MsoNormal\">Determine the stock&#8217;s volatility compared to the market benchmark.<\/li>\n<li class=\"MsoNormal\">Assess whether the stock acts as an aggressive or defensive investment during the analyzed period.<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Literature Review:<\/span><\/i><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Modern Portfolio Theory (MPT):<\/b> Suggests that investors can reduce overall portfolio variance by including low-beta (defensive) stocks like Voltamp Transformers.<\/li>\n<li class=\"MsoNormal\"><b>Systematic vs. Unsystematic Risk:<\/b> Systematic risk (Market risk) is the risk inherent to the entire market and cannot be diversified. Unsystematic risk (Company-specific risk), which appears to be dominant for Voltamp, can be mitigated through a well-diversified portfolio.<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Data Collection:<br \/><\/span><\/i><\/b>The data for this analysis was sourced from the provided financial dataset covering the period from December 1, 2024, to November 30, 2025.<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Stock:<\/b> Voltamp Transformers Limited (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Market Index:<\/b> Nifty 50 (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Frequency:<\/b> Weekly closing prices were used to calculate weekly returns.<\/li>\n<li class=\"MsoNormal\"><b>Observation Count:<\/b> 51 weekly data points.<\/li>\n<li class=\"MsoNormal\"><b>Variables:<\/b>\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\"><b>Independent Variable (X):<\/b> Weekly Returns of NIFTY 50 Index.<\/li>\n<li class=\"MsoNormal\"><b>Dependent Variable (Y):<\/b> Weekly Returns of VOLTAMP.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Data Analysis:<\/span><\/i><\/b><\/p>\n<p class=\"MsoListParagraph\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><b>Regression Equation:<\/b><\/p>\n<p class=\"MsoNormal\" style=\"text-align: center\" align=\"center\"><i>Voltamp Transformers (Y) = -0.0751 + 0.0499 * Nifty 50 (X)<\/i><\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><b>Key Statistics:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>T-Stat:<\/i> 1.5634<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->No. of Observations (n): 51<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>R^2:<\/i> 0.0475 (4.75%)<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>F-Stat:<\/i> 2.4444<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>P-Value:<\/i> 0.1243<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\"><b>\u00a0<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><b>Interpretation:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->The regression equation describes the relationship between the Weekly Return of Nifty 50 (X) and the share price of Voltamp Transformers Limited (Y). The positive coefficient of X indicates a direct (though weak) relationship.<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt\">\u00a0<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->If the weekly price of Nifty 50 rises by 1%, the weekly price of Voltamp Transformers Limited is expected to rise by only 0.05%, and vice versa.<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\">\u00a0<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->The t-stat for Beta is 1.5634, and the p-value is 0.1243. Since the p-value is greater than 0.05, the Beta (\u03b2) is not statistically significant at the 5% level. This suggests that the market index is not a strong predictor of this stock&#8217;s weekly returns.<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\"><b>\u00a0<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->The number of observations is 51, R^2 is 0.0475, meaning that only 4.75% of the variation in the Weekly Return of Voltamp is explained by the Nifty 50 Index. The remaining 95.25% is attributed to unsystematic factors such as company fundamentals, earnings reports, and industry-specific developments.<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\"><b>\u00a0<\/b><\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->The F-stat is 2.4444 with a significance p-value of 0.1243, indicating that the overall regression model is not statistically significant at the 5% level.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Conclusion:<br \/><\/span><\/i><\/b>Since Beta (\u03b2) = 0.0499, which is significantly less than 1, the stock is classified as highly defensive, <span lang=\"EN-US\">and one must invest in this company for the long term if Nifty is expected to rise.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">References:<\/span><\/i><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Sharpe (1964):<\/b> Foundational CAPM theory explaining Beta and market risk.<\/li>\n<li class=\"MsoNormal\"><b>Bodie, Kane &amp; Marcus (2021):<\/b> Discussion on aggressive vs. defensive stocks based on Beta values.<\/li>\n<li class=\"MsoNormal\"><b>Ross, Westerfield &amp; Jaffe (2019):<\/b> Insights into Beta interpretation for corporate finance and investment strategy.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Introduction:Voltamp Transformers Limited, established in 1961 and headquartered in Vadodara, Gujarat, is a premier manufacturer of electrical transformers in India. The company specializes in a wide range of oil-filled and dry-type power and distribution transformers, catering to diverse sectors including Power, Steel, Cement, Oil &amp; Gas, and Green Energy. With over six decades of expertise&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=23272\">Continue reading <span class=\"screen-reader-text\">Relationship of Nifty 50 with Voltamp Transformers Limited<\/span><\/a><\/p>\n","protected":false},"author":139938,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23272","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\/23272","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\/139938"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23272"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23272\/revisions"}],"predecessor-version":[{"id":23273,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23272\/revisions\/23273"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23272"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}