{"id":24912,"date":"2026-03-22T13:55:07","date_gmt":"2026-03-22T08:25:07","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=24912"},"modified":"2026-03-22T13:55:07","modified_gmt":"2026-03-22T08:25:07","slug":"calculation-of-beta-of-pvr-inox-and-its-significance","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24912","title":{"rendered":"Calculation of Beta of PVR INOX and its significance"},"content":{"rendered":"

Title: Calculation of Beta of PVR INOX and its significance<\/span><\/b><\/p>\n

Author: Prajwal Devadiga (09)<\/span><\/b><\/p>\n

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Introduction:<\/span><\/b> PVR INOX Limited is an Indian multiplex chain. It was formed in 2023 as a result of the merger between PVR Cinemas and INOX Leisure. PVR pioneered the multiplex revolution in India by establishing the first modern multiplex cinema in 1997 at Saket, New Delhi. As of December 2026, PVR INOX operates 1,749 screens across 355 properties in 111 cities of India and Sri Lanka.<\/span><\/p>\n

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Objective: <\/span><\/b>Calculation of Beta and observe its significance <\/span><\/p>\n

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

1.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>A study on media and entertainment stocks by JETIR (2019) <\/b>found that regression beta is a useful tool to measure systematic risk and market sensitivity. The analysis showed that PVR exhibited a low or even negative beta in certain periods, indicating weak or inverse correlation with market movements, making it relatively less volatile in comparison to peers.<\/span><\/b><\/p>\n

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2.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Recent study at Stock analysis (2026) on PVR INOX suggests a beta close to 1 or below, indicating moderate to low volatility relative to the market. Regression-based beta estimates highlight that the company\u2019s stock risk is influenced by industry dynamics and changing consumer behavior, reflecting sensitivity to broader market conditions but not excessive volatility.<\/span><\/p>\n

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Data Collection: <\/span><\/b>Data for Nifty 50 and PVR INOX was downloaded from NSE india.com for the period 1-1-25 to 31-12-25, Friday closing prices for Nifty 50 and PVR INOX were segregated, weekly returns of Nifty 50 were taken as \u2018x\u2019 and weekly returns of PVR INOX were taken as \u2018y\u2019, \u2018y\u2019 was regressed on \u2018x\u2019.<\/span><\/p>\n

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

Y=0.08840988+1.47427514x<\/span><\/p>\n

The above equation shows the relationship between Nifty 50 and PVR INOX, there is a direct relationship which means Nifty 50 rises so will the PVR INOX and vice versa, If Nifty 50 rises by 1 unit the PVR INOX will rise by 1.47. Number of observation are 48 , t-stat for B is 4.354 the P-value for which is 7.38479E-05 which is which is less than 0.05, B is statistically significant at 5% level, r^2=0.29 meaning 29% of rise in stock of PVR INOX is explained by Nifty 50 and 71% is error due to the variables not included in the model now F is 18.96 and P-value is 7.38479E-05 which is less than 0.05 it means overall model is statistically significant at 5% level.<\/span><\/p>\n

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Conclusion:<\/span><\/b> The beta here is 1.47 as it is more than 1 invest for short term <\/span><\/p>\n

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

JETIR. (2019). Equity analysis of selected media and entertainment sector stocks. Journal of Emerging Technologies and Innovative Research.<\/span><\/p>\n

StockAnalysis. (2026). PVR INOX Ltd statistics and valuation metrics<\/i>. Retrieved from <\/span>https:\/\/stockanalysis.com<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Calculation of Beta of PVR INOX and its significance Author: Prajwal Devadiga (09) \u00a0 Introduction: PVR INOX Limited is an Indian multiplex chain. It was formed in 2023 as a result of the merger between PVR Cinemas and INOX Leisure. PVR pioneered the multiplex revolution in India by establishing the first modern multiplex cinema… Continue reading Calculation of Beta of PVR INOX and its significance<\/span><\/a><\/p>\n","protected":false},"author":140104,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24912","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\/24912","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\/140104"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24912"}],"version-history":[{"count":2,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24912\/revisions"}],"predecessor-version":[{"id":25394,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24912\/revisions\/25394"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24912"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}