Institute of Management

Nirma University

Data Analysis and Management

MBA – FT (2021-2023)
Section A

Submitted to: Prof. Mahesh KC

Submitted by: Rishab Kaushik 211051
Rishabh Pande 211052
Ritik Kalra 211053
Riya Ojha 211054
Robyn Joe Cherian 211055
About the Industry – POWER
Power is among the most critical component of infrastructure, crucial for the
economic growth and welfare of nations. The existence and development of
adequate infrastructure are essential for the sustained growth of the Indian economy.
India’s power sector is one of the most diversified in the world. Power generating
options include coal, lignite, natural gas, oil, hydro, and nuclear power, as well as
feasible non-conventional options including wind, solar, and agricultural and
household waste. The country's electricity demand has risen fast and is anticipated
to continue to climb in the coming years. To fulfill the country's growing need for
energy, a huge increase in installed generating capacity is necessary.

About the Company - TATA POWER

Tata Power, which was once a member of the Tata Electric Companies trio, is a
technology pioneer with several firsts to its name, contributing to the country's
energy independence. Tata Power, along with its subsidiaries and joint ventures, has
a total generation capacity of 13,061 MW, with renewable energy accounting for
32%. Tata Power, which was founded in 1915 and today has almost a century of
experience in technological leadership, project execution excellence, world-class
safety standards, customer care, and driving green initiatives, is dedicated to 'lighting
up lives for future generations.

About the Company – RELIANCE POWER

Reliance Power Limited is a subsidiary of the Reliance Group, India's largest
conglomerate. Reliance Power is a company that develops, builds, and operates
power plants in India and across the world. The Company owns and operates a vast
portfolio of power production capacity, both operational and under construction,
through its subsidiaries. Three coal-fired projects are being developed, with reserves
from captive mines and supplies from India and abroad; one gas-fired project is
being developed; and twelve hydroelectric projects are being developed, with six in
Arunachal Pradesh, five in Himachal Pradesh, and one in Uttarakhand.
Tata Power

§ On 1st April 2020, the closing price of the stock on NSE was Rs. 31.55
§ On 30th March 2021, the closing price of the stock was Rs. 103.6
§ The Highest price was on 12th March 2021 which was Rs 113.250
§ The lowest price was on 12th May 2020 which was Rs 27.3

We can analyze the daily closing price in form of graph as shown above.
§ The stock price of the company looked stable with little bit of increase from
November to March
§ Overall, the Stock price showed steady growth throughout the year as seen on
trendline from the graph.
§ The Average price of the stock was Rs. 60.866 with Standard Deviation of Rs. 21.296
§ The Median Price was Rs. 55.200 and Mode of Price was Rs. 56.700
§ The maximum price of the stock was Rs. and minimum was Rs. 335.8
§ The Stock had maximum price on 4 August 2021 and minimum on 24 September 2020
§ 1 share brought on 24 September 2020 and sold on 31st March 2021 had given return of
105.35% and Profit of Rs. 53.15
§ The Closing Price remained most in the range of Rs. 50 to Rs. 60 for 72 days
§ Other Price Range remained similar and for around 15 to 25 days
§ The Graph is Right Skewed

Box and Whiskers

§ The Box and Whiskers Plot of daily closing price doesn’t show any outliers present
§ This gives us no idea about the changes in the price
§ But as there are no Outliers seen, this stock can be considered a much safer
§ The Interquartile range is very much narrow compared to the total distribution range and
this is called fat tails which is quite common in stock analysis
§ The average of daily return with little fluctuation is around 1.13 and as it is positive and
it suggested that the stock will move forward with time.
§ The deviation is just a magnitude more compared to mean suggesting, it is less risky
stock.
§ The mean is greater than the median thus making this a positive right tailed graph.

§ Tata Power is less risky stock giving more returns over long period of
time
§ So this stock should be kept for long term investment
Reliance Power

§ On 1st April 2020, the closing price of the stock on NSE was Rs. 1.3
§ On 31st March 2021, the closing price of the stock was Rs. 4.55

We can analyze the daily closing price in the form of graph as shown above:
§ The stock price of the company was very unstable and can see very fluctuation in
the price daily
§ The stock at certain days seems to be bullish and as soon as it reaches the peak, it
dropped drastically
§ 1 share bought on 1st April 2020 and sold on 30th March 2021 had given an
annual return of just 250%
§ Total Annual Profit that bagged on 1 share bought on 1st April 2020 and sold on
31st March 2021 was just Rs. 3.25
• The Average Closing Price of the stock was Rs. 3.199 with a standard Deviation of Rs.
0.823
• The Median Price was Rs. 3.3 and Mode of the Price was Rs. 3.45
• The maximum Price of the Stock was Rs. 5.35 and minimum Price of the stock was Rs.
1.3
• The Maximum Price of the stock was on 31st March 2021 and minimum Price of the
stock was on 1st April 2020
• 1 share bought on 11th Jan 2021 and sold on 25th March 2021 had given the maximum
profit throughout the period of Rs. 1.15 with a return of 32.4%
 Frequency
160
140
120
100
80
60
40
20
0
2 3 4 5 6

• The Closing Price was most in the range on Rs. 3 to Rs. 4 for 138 days
• The Price remained in the Range of Rs. 3 to Rs.4 for most of the time in the year.
• Second most Price Range was of Rs. 2 to Rs. 3 for 46 days
• The Graph is Left Skewed graph

Box and Whisker Plot

6.000

5.000

4.000

3.000

2.000

1.000

0.000
2nd Quartile Inter Quartile… Upper Limit
1st Quartile 3rd Quartile Lower Limit

• The Box and Plot of the daily closing price does show few outliers present
• This doesn’t give any idea about the fluctuation in the prices
• For more correct analysis we use daily return
In order to analyze the stock for intraday trading, we have taken daily returns.
§ The daily return is ranging from loss to profit and centered quite around zero
§ This histogram has a tail on Left and that cannot be neglected
§ So, buying this stock is risky
• There are few outliers present which are the reason for changes in standard deviation
• As Many outliers are seen, this stock is much risky
• Interquartile Range of the stock is very much narrow compared to total distribution range
and this is called fat tail which is seen quite common in stock analysis
• Negatively skewed distribution implies many small wins and a few large losses on the
investment.
• The average of daily return is around 0.023 and it suggests the price was much
fluctuating with increase and decrease in the value
• The Standard deviation is closer to zero which means the stock prices are closer to the
mean.
• The mean is less than the median and the skewness is also negative that confirms the
graph is left skewed.

§ Reliance Power is a risky stock giving more returns over a short period
of time
§ This stock should be kept for short period and should be bought when
the price falls and should be sold soon as the price rises.
Reference:
• https://www.tatapower.com
• https://www.reliancepower.co.in
• https://www.ibef.org/industry/power-sector-india.aspx