{"id":23527,"date":"2025-12-30T10:47:52","date_gmt":"2025-12-30T05:17:52","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23527"},"modified":"2025-12-30T10:47:52","modified_gmt":"2025-12-30T05:17:52","slug":"relationship-of-kpr-mills-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23527","title":{"rendered":"Relationship of KPR Mills Ltd. with Nifty 50"},"content":{"rendered":"

Kiran Srinivas<\/i><\/b><\/b><\/p>\n

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Introduction about KPR Mills Ltd.<\/b><\/p>\n

KPR Mills Ltd. is a leading Indian textile and apparel manufacturing company with a strong presence across yarn, fabric, garments, and sugar production. Established in 2003, the company has built an integrated business model that enables cost efficiency and quality control. KPR Mills exports its products to several international markets and is known for its focus on sustainability, operational efficiency, and consistent financial performance. Due to its diversified operations and export orientation, KPR Mills is considered an important player in the Indian textile sector.<\/p>\n

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

<\/b>\u00b7<\/span><\/span>To calculate the\u00a0Beta (\u03b2)\u00a0of KPR Mills Ltd. with respect to the Nifty 50 Index.<\/p>\n

<\/b>\u00b7<\/span><\/span>To examine the\u00a0relationship between market returns and stock returns\u00a0of KPR Mills Ltd.<\/p>\n

\u00b7<\/span><\/span>To analyze the\u00a0statistical significance\u00a0of the relationship.<\/p>\n

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

Article 1:<\/b>
According to Sharpe (1964), the Capital Asset Pricing Model (CAPM) establishes Beta as the primary measure of systematic risk in a portfolio. His research demonstrates that a stock’s expected return is directly related to its sensitivity to market movements. This framework remains the global standard for understanding how individual stocks, like KPR Mills, interact with benchmark indices like the Nifty 50.<\/p>\n

Article 2:<\/b>
Empirical studies on the Indian textile sector (e.g., Gupta & Rao, 2019) highlight that mid-cap manufacturing stocks often exhibit lower correlation with the Nifty 50 due to sector-specific drivers. These studies suggest that factors such as global cotton prices, rupee depreciation, and export demand often influence textile stock prices more than general market sentiment, leading to “decoupled” behavior where the stock moves independently of the index.<\/p>\n

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

Data for\u00a0KPR Mills Ltd.\u00a0and the\u00a0Nifty 50 Index\u00a0were collected from the NSE website for the period\u00a01 December 2024 to 30 November 2025.
Friday closing prices were used to calculate\u00a0weekly returns.<\/p>\n

Weekly returns of\u00a0Nifty 50\u00a0were taken as the independent variable (X).<\/p>\n

Weekly returns of\u00a0KPR Mills Ltd.\u00a0were taken as the dependent variable (Y).<\/p>\n

A simple linear regression model was applied where\u00a0Y was regressed on X.<\/p>\n

Total number of observations:\u00a048<\/p>\n

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

The regression equation obtained is:<\/p>\n

Y = \u20130.0725 + 0.0060X<\/p>\n

Where:<\/p>\n