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    Basic Financial Management Digital Assignment-II: Cyril A 19MBA0051

    Uploaded by

    Alb Jack
    The document analyzes stock returns and beta values for GSS Infotech over three time periods: November 2019-April 2020, May 2020-October 2020, and November 2019-October 2020. It finds that the beta was 0.44 before the COVID pandemic and 0.51 after, indicating slightly higher volatility relative to the market after the pandemic began. It also notes that GSS Infotech stock prices dropped during the initial pandemic period from January-April 2020 due to work from home policies and project delays, but then rose from July-October 2020, suggesting the company will perform well going forward.

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    Basic Financial Management Digital Assignment-II: Cyril A 19MBA0051

    Uploaded by

    Alb Jack
    15 views6 pages
    The document analyzes stock returns and beta values for GSS Infotech over three time periods: November 2019-April 2020, May 2020-October 2020, and November 2019-October 2020. It finds that the beta was 0.44 before the COVID pandemic and 0.51 after, indicating slightly higher volatility relative to the market after the pandemic began. It also notes that GSS Infotech stock prices dropped during the initial pandemic period from January-April 2020 due to work from home policies and project delays, but then rose from July-October 2020, suggesting the company will perform well going forward.

    Original Description:

    gss infotech analysis

    Original Title

    Gss Infotech Ltd

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    The document analyzes stock returns and beta values for GSS Infotech over three time periods: November 2019-April 2020, May 2020-October 2020, and November 2019-October 2020. It finds that the beta was 0.44 before the COVID pandemic and 0.51 after, indicating slightly higher volatility relative to the market after the pandemic began. It also notes that GSS Infotech stock prices dropped during the initial pandemic period from January-April 2020 due to work from home policies and project delays, but then rose from July-October 2020, suggesting the company will perform well going forward.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views6 pages

    Basic Financial Management Digital Assignment-II: Cyril A 19MBA0051

    Uploaded by

    Alb Jack
    The document analyzes stock returns and beta values for GSS Infotech over three time periods: November 2019-April 2020, May 2020-October 2020, and November 2019-October 2020. It finds that the beta was 0.44 before the COVID pandemic and 0.51 after, indicating slightly higher volatility relative to the market after the pandemic began. It also notes that GSS Infotech stock prices dropped during the initial pandemic period from January-April 2020 due to work from home policies and project delays, but then rose from July-October 2020, suggesting the company will perform well going forward.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Basic Financial Management (BMT6112)

    Digital Assignment-II
    Submitted by

    CYRIL A

    19MBA0051
    Company : GSS INFOTECH
    1) Data for 06 months from November 2019 –April 2020:
    Month GSS INFOTECH returns (Y) BSE index (X) X^2 XY

    Nov-19 34.15 12605.82 158906697.9 430488.753

    Dec-19 25.7 12736.31 162213592.4 327323.167

    Jan-20 48.1 12533.2 157081102.2 602846.92

    Feb-20 32.3 11728.36 137554428.3 378826.028

    Mar-20 19.05 9000.99 81017820.98 171468.8595

    Apr-20 25.95 10326.33 106633091.3 267968.2635

    TOTAL 185.25 68931.01 803406733.1 2178921.991

    BETA 0.44

    (6x2178921.9)-6993101x185.25
    =
    (6x8034067.1)-(68931.01)

    Beta = 0.44
    GSS INFOTECH Close Price (Y)
    60 (Nov-2019 to Apr 2020)
    50 48.1
    40
    34.15
    30 32.3
    25.7 25.95
    20 19.05
    10
    0
    Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20

    2) Data for 06 months from May 2020 –October 2020

    Month GSS INFOTECH returns (Y) BSE X^2 XY


    index(X)

    May-20 20.65 10013.16 100263373.2 206771.8

    Jun-20 26.15 10768.19 115953915.9 281588.2

    Jul-20 23 11618.98 135000696.2 267236.5

    Aug-20 24.75 11927.59 142267403.2 295207.9

    Sep-20 32.75 11820.78 139730839.8 387130.5

    Oct-20 36.8 12196.08 148744367.4 448815.7

    Total 164.1 68344.78 781960595.7 1886751

    BETA 0.51

    (6x188675)-68344.7x164.1

    (6x781960595.7)-(68344.7)
    Beta =0.51

    GSS INFOTECH Close Price (Y)


    (May 2020 to Oct 2020)
    40
    36.8
    32.75
    30
    26.15 24.75
    23
    20.65
    20

    10

    0
    May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20

    3) Data for 12 months from November 2019 – October 2020

    Month GSS INFOTECH returns (Y) BSE index(X) X^2 XY

    Nov-19 34.15 12605.82 158906697.9 430488.8

    Dec-19 25.7 12736.31 162213592.4 327323.2

    Jan-20 48.1 12533.2 157081102.2 602846.9

    Feb-20 32.3 11728.36 137554428.3 378826

    Mar-20 19.05 9000.99 81017820.98 171468.9

    Apr-20 25.95 10326.33 106633091.3 267968.3

    May-20 20.65 10013.16 100263373.2 206771.8

    Jun-20 26.15 10768.19 115953915.9 281588.2

    Jul-20 23 11618.98 135000696.2 267236.5

    Aug-20 24.75 11927.59 142267403.2 295207.9

    Sep-20 32.75 11820.78 139730839.8 387130.5

    Oct-20 36.8 12196.08 148744367.4 448815.7

    TOTAL 349.35 137275.79 1585367329 4065673

    BETA 0.5
    (12x4065673)-137275.7x349.35

    (12x15853673)-(137275.7)

    Beta =0.5

    BSE Close (X) (NOV 19 - OCT 20)


    14000
    12605.82 12736.31 12533.2 12196.08
    12000 11728.36 11618.98 11927.59 11820.78
    10000 10326.33 10013.16 10768.19
    9000.99
    8000

    6000

    4000

    2000

    0
    Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20

    GSS INFOTECH Returns (Y) (Nov 19 - Oct 20)


    60

    50 48.1

    40
    36.8
    34.15 32.3 32.75
    30
    25.7 25.95 26.15 24.75
    23
    20 19.05 20.65

    10

    0
    Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
    4) Based on your calculations, comment on beta’s stability before covid and after covid in
    India

    Before pandemic situation in December 2019 it gets rise from Rs.25.7 to Rs. 48.1.
    At the same time From January 2020 to April 2020 it starts decline from Rs. 48.1
    to Rs. 19.05 due to pandemic situation most employees get into work from home
    IT sector cut down monthly salary also most foreign project delays on deadlines
    this all end up in less productivity in nature.

    Before Pandemic the BETA value for the GSS infotech is 0.44 and After the
    Pandemic situation the BETA value for the GSS infotech is 0.51 it means that
    before pandemic 56% less Volatality than the market, after that it changes to 50%
    less volatality than the market. Based on the beta calculation we could say that IT
    industry is performing very well.

    From the July drop GSS share price continuously rise from Rs.23 to Rs. 36.8 on
    October 2020 so, it clearly shows that it will perform well.

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