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Risk Beta:
Risk beta, often referred to simply as beta, is a measure of a stock's volatility in relation to the
overall market. It indicates how sensitive a particular stock's price movements are to fluctuations in
the broader market index, typically the S&P 500. A beta greater than 1 suggests the stock is more
volatile than the market, while a beta less than 1 indicates lower volatility. Investors use beta to
assess the risk of a stock relative to the market and to make informed decisions about portfolio
diversification.
Risk SD:
Risk SD, or Risk Management System Development, refers to the process of creating a
comprehensive framework to identify, assess, and mitigate risks within an organization or project. It
involves implementing strategies and protocols to minimize potential threats and capitalize on
opportunities while maintaining operational efficiency and achieving objectives. Effective risk SD
entails a structured approach, incorporating data analysis, scenario planning, and stakeholder
engagement to foster a culture of risk awareness and proactive management.
Company Profile:
Havells India Limited is an Indian multinational electrical equipment company, based
in Noida. It was founded by Haveli Ram Gandhi, later sold to Qimat Rai Gupta who was his
distributor. The company manufactures home appliances, lighting for domestic, commercial
and industrial applications, LED lighting, fans, modular switches and wiring
accessories, water heaters, industrial and domestic circuit protection switchgear, industrial
and domestic cables and wires, induction motors, and capacitors among others. Havells
owns brands like Havells, Lloyd, Crabtree, Standard Electric, Reo and Promptec.
The company has 23 branches or representative offices with over 6,000 workers in over 50
countries. India's first Lloyd's exclusive outlet is acquired by businessman Rajan Bansal. The
store is situated in western part of New Delhi, Paschim Vihar.[5][6] As of 2016, it has 11
manufacturing plants in India located
at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and Bengaluru.[7]
History[edit]
In 1983, it bought the loss-making Delhi-based Towers and Transformers Ltd and turned it
around in a year. Between 1997 and 2001, Havells also bought ECS, Duke Arnics Electronics,
Standard Electricals and Crabtree India. There was a 50:50 joint venture between Havells
and the UK-based Crabtree, and Havells later acquired Crabtree's stake in the JV. [8][9] In 2007,
Havells acquired European lighting company Sylvania for about €200 million.[10][11] In 2010,
Havells introduced ceramic metal-halide lamp.[12]
In April 2015, Havells acquired a 51% majority stake in Promptec Renewable [13] before
increasing its stake in the company to 100% in 2018. In December 2015, Havells sold 80%
stake in Sylvania Malta and Havells Exim Hong Kong to Shanghai Feilo Acoustics for ₹1,070
crore (US$166.79 million)[14] and sold the remaining 20% two years later.[15] In February
2017, it acquired the consumer durables business of Lloyd Electricals at an enterprise
value of ₹1,600 crore (US$245.69 million).[16]
Recognition
In 2014, Havells was listed 125th among 1200 of India's most trusted brands according to
the Brand Trust Report 2014, a study conducted by Trust Research Advisory
FINDINGS
0.01203
5 SD OF NIFTY
0.01903
2 SD OF HAVELLS
0.03482
6 SD OF CGCE
0.78578
1 BETA OF HAVELLS
0.62527
7 BETA OF CGCE
Conclusion:-
The first interpretation is that, comparing CGCE and Havells we have observed that CgCe is less
riskier compared to havells. The beta of havells is 0.785781 which means if market changes by 1
percent , the CGCE return will change by 0.019032 percent. On the other hand the havells which is
less volatile than compared to market. However on the contrary if market falls by 1 percent the
havells return will fall by where as CGCE return will fall by 0.625277 . Hence, CGCE is more volatile
than havells.