Author: Ram Kumar Yadav<\/b><\/p>\n
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Introduction:<\/b><\/p>\n
This research examines the relationship between the stock returns of\u00a0Raymond Limited<\/b>\u00a0and the benchmark index\u00a0NIFTY 50<\/b>, with the objective of estimating and interpreting systematic risk through\u00a0beta analysis<\/b>. The study evaluates the extent to which Raymond Limited\u2019s share price movements are influenced by overall market movements and whether the stock exhibits market-driven or firm-specific behavior. Using a regression-based\u00a0Capital Asset Pricing Model (CAPM)<\/b>\u00a0framework, the analysis measures the strength, direction, and statistical significance of the relationship between Raymond Limited\u2019s returns and the NIFTY 50 index. The findings provide insights into the risk-return characteristics of Raymond Limited and its suitability as an investment option relative to broader market performance.<\/p>\n
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Objectives:<\/b><\/p>\n
\u2022 To calculate the beta of Raymond Limited
\u2022 To analyze the significance of beta in relation to NIFTY 50<\/p>\n
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Literature Review:<\/b><\/p>\n
View 1: V. L. Govindarajan, U. Parthiban, V. Balu (2020)<\/b><\/p>\n
Financial Performance of Nifty 50 Automobile Companies in India \u2013 An Empirical Comparative Analysis<\/i><\/p>\n
The study is based on secondary data collected from annual reports and financial websites such as Moneycontrol and BSE for a ten-year period from 2009\u201310 to 2018\u201319. The research analyses the financial performance of selected NIFTY 50 companies using Edward Altman\u2019s Z-score and DuPont analysis of Internal Growth Rate (IGR) and Sustainable Growth Rate (SGR). Various profitability, liquidity, and per-share ratios were used as independent variables. Statistical tools such as descriptive statistics, correlation analysis, Friedman test, and coefficient of determination were applied. The findings emphasize the importance of firm-specific financial ratios in explaining company performance rather than relying solely on market indicators.<\/p>\n
View 2: Mr. Pushkar Dilip Parulekar (2015)<\/b><\/p>\n
DuPont Analysis for Selected Five NIFTY Fifty Companies<\/i><\/p>\n
This study focuses on return on equity (ROE) as a measure of shareholder wealth maximization and decomposes it using the DuPont model into Net Profit Margin, Asset Turnover Ratio, and Equity Multiplier. The research examines five NIFTY 50 companies, including Raymond Limited, across different sectors of the Indian economy. Multiple regression analysis and ANOVA at a 95% confidence level were applied using audited financial statements from 2005 to 2014. The results indicate that operational efficiency and financial leverage significantly influence shareholder returns.<\/p>\n
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Data Collection:<\/b><\/p>\n
The data for\u00a0NIFTY 50<\/b>\u00a0and\u00a0Raymond Limited<\/b>\u00a0were collected from the official website of\u00a0NSE India<\/b>\u00a0for the period\u00a001-12-2024 to 30-11-2025<\/b>. Friday closing prices were used to compute\u00a0weekly returns<\/b>.<\/p>\n
Weekly returns were calculated using the formula:<\/p>\n
Weekly Return = (Current Week Price \u2212 Previous Week Price) \/ Previous Week Price \u00d7 100<\/b><\/p>\n
The weekly returns of\u00a0NIFTY 50<\/b>\u00a0were taken as the independent variable (X), while the weekly returns of\u00a0Raymond Limited<\/b>\u00a0were taken as the dependent variable (Y). A\u00a0simple linear regression analysis<\/b>\u00a0was conducted by regressing Y on X.<\/p>\n
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Data Analysis:<\/b><\/p>\n
Raymond Limited Returns = 4.0190 + 1.0788 (NIFTY 50)<\/b><\/p>\n
The above regression equation explains the relationship between the dependent variable (returns of Raymond Limited) and the independent variable (NIFTY 50 returns) using\u00a046 weekly observations<\/b>.<\/p>\n
The coefficient of the independent variable (NIFTY 50) is\u00a01.0788<\/b>, indicating a\u00a0positive but weak relationship<\/b>\u00a0between market returns and the returns of Raymond Limited. This suggests that a one-unit increase in NIFTY 50 returns leads to an average increase of approximately\u00a01.08 units<\/b>\u00a0in Raymond Limited\u2019s returns; however, the strength of this relationship is weak.<\/p>\n
The\u00a0p-value of 0.5264<\/b>\u00a0for the NIFTY 50 coefficient is much higher than the\u00a05% and 1% significance levels<\/b>, indicating that the relationship is\u00a0statistically insignificant<\/b>. Hence, the null hypothesis cannot be rejected, and market returns do not significantly explain the returns of Raymond Limited during the study period.<\/p>\n
The\u00a0R\u00b2 value of 0.0092<\/b>\u00a0shows that only\u00a00.92%<\/b>\u00a0of the variation in Raymond Limited\u2019s returns is explained by changes in NIFTY 50 returns. This indicates that nearly\u00a099% of the variation<\/b>\u00a0in returns is driven by firm-specific factors such as business restructuring, demergers, operational performance, sectoral trends, and management decisions.<\/p>\n
Further, the\u00a0F-statistic of 0.41<\/b>\u00a0with a\u00a0Significance F value of 0.5264<\/b>\u00a0confirms that the overall regression model is\u00a0statistically insignificant<\/b>, suggesting that NIFTY 50 returns fail to explain the movements in Raymond Limited\u2019s equity returns during the study period.<\/p>\n
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Conclusion:<\/b><\/p>\n
The regression analysis reveals that there is\u00a0no statistically significant relationship<\/b>\u00a0between the returns of Raymond Limited and the NIFTY 50 index. Although the estimated beta coefficient is positive, it is weak and statistically insignificant, indicating that Raymond Limited\u2019s stock returns do not meaningfully respond to overall market movements during the study period.<\/p>\n
The extremely low R\u00b2 value highlights that market movements explain only a negligible portion of the variation in Raymond Limited\u2019s returns, emphasizing the dominant role of\u00a0company-specific factors and corporate actions<\/b>. Overall, Raymond Limited exhibits distinctive risk characteristics, making it suitable for investors seeking\u00a0diversification benefits<\/b>\u00a0rather than direct exposure to general market movements represented by the NIFTY 50 index.<\/p>\n
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References:<\/b><\/p>\n
Govindarajan, V. L., Parthiban, U., & Balu, V. (2020).\u00a0Financial Performance of Nifty 50 Automobile Companies in India \u2013 An Empirical Comparative Analysis<\/i>, Volume I, 2020.<\/p>\n
Parulekar, P. D. (2015).\u00a0DuPont Analysis for Selected Five NIFTY Fifty Companies<\/i>, Vol. 2, 2015.<\/p>\n","protected":false},"excerpt":{"rendered":"
Author: Ram Kumar Yadav \u00a0 Introduction: This research examines the relationship between the stock returns of\u00a0Raymond Limited\u00a0and the benchmark index\u00a0NIFTY 50, with the objective of estimating and interpreting systematic risk through\u00a0beta analysis. The study evaluates the extent to which Raymond Limited\u2019s share price movements are influenced by overall market movements and whether the stock exhibits… Continue reading Title: Relationship of NIFTY 50 with Raymond Limited<\/span><\/a><\/p>\n","protected":false},"author":140031,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23447","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\/23447","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\/140031"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23447"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23447\/revisions"}],"predecessor-version":[{"id":23448,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23447\/revisions\/23448"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23447"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}