Topic:- Correlation And Regression Between

Share Price,EPS, DPS, and Book Value of

DR REDDYS
SUBMITTED TO:DR. L.K.SINGH

Date : 5th /oct/2012

SUBMITTED BY:TAMANNA JOSHI

SAVITA KHULBE
ANCHAL KANDPAL
REKHA KANDPAL
KAMAL JOSHI

CORRELATION BETWEEN SHARE PRICE AND EPS

year

sh.price (x)

eps (y)

dx

dy

dxdy

dx

dy

11

1647.4

53.81

726.2173

10.83364

7867.574

527391.5

117.3677

10

1577.95

52.78

656.7673

9.803636

6438.708

431343.3

96.11129

1662.55

50.11

741.3673

7.133636

5288.645

549625.4

50.88877

1143.8

33.29

222.6173

-9.68636

-2156.35

49558.45

93.82564

469.75

28.26

-451.433

-14.7164

6643.448

203791.5

216.5714

735.35

70.09

-185.833

27.11364

-5038.6

34533.8

735.1493

811.2

27.53

-109.983

-15.4464

1698.833

12096.2

238.5901

489.25

8.55

-431.933

-34.4264

14869.87

186565.9

1185.175

432.65

37.01

-488.533

-5.96636

2914.764

238664.2

35.5975

714.03

51.24

-207.153

8.263636

-1711.83

42912.25

68.28769

449.08

60.07

-472.103

17.09364

-8069.95

222881

292.1924

10133.01

472.74

28745.1

2499364

3129.756

total=

x=10133.01/11= 921.18

y=472.74/11=42.97

ANALYSIS : share price and eps. are positive but less

correlated. Hence any change in eps. will not have much
effect in share price.

CORRELATION BETWEEN SHARE PRICE AND DPS

year

total

sh.price

dps

dx

dy

dxdy

dx

dy

11

1647.4

13.75

726.2173

6.704545

4868.957

527391.5

44.95093

10

1577.95

11.25

656.77

4.204545

2761.419

431346.8

17.6782

1662.55

11.25

741.37

4.204545

3117.124

549629.5

17.6782

1143.8

6.25

222.62

-0.79545

-177.084

49559.66

0.632748

469.75

3.75

-451.43

-3.29545

1487.667

203789

10.86002

735.35

3.75

-185.83

-3.29545

612.3943

34532.79

10.86002

811.2

-109.98

-2.04545

224.9591

12095.6

4.183884

489.25

-431.93

-2.04545

883.4932

186563.5

4.183884

432.65

-488.53

-2.04545

999.2659

238661.6

4.183884

714.03

-207.15

-2.04545

423.7159

42911.12

4.183884

449.08

7.5

-472.1

0.454545

-214.591

222878.4

0.206612

10133.01

77.5

14987.32

2499360

119.6023

x=x/n

y=y/n

921.1827

dxdy
dx dy
2

7.045455

14987.32
0.398
2499630119.6023

ANALYSIS : share price and dps. are positive but less

correlated. Hence any change in dps. will not have much
effect in share price.

CORRELATION BETWEEN SHARE PRICE AND BOOK VALUE

share
price(x)

year

total

book
value(y)

x2

y2

xy

dx

11

1647.4

396.19

2713927

156966.516

652683.4

10

1577.95

355.69

2489926

126515.376

1662.55

350.3

2764073

1143.8

312.17

469.75

dy
726.217

dxdy

dx2

dy2

103.359091

75061.16

527391.567

10683.102

561261

656.77 62.8590909

41283.965

431346.833

3951.2653

122710.09

582391.3

741.37 57.4690909

42605.86

549629.477

3302.6964

1308278

97450.1089

357060

222.62

19.3390909

4305.2684

49559.6644

374.00044

286.12

220665.1

81864.6544

134404.9

-451.43

-6.7109091

3029.5057

203789.045

45.036301

735.35

260.45

540739.6

67834.2025

191561

-185.83

-32.380909

6017.3443

34532.7889

1048.5233

811.2

294.95

658045.4

86995.5025

239263.4

-109.98

2.11909091

-233.05762

12095.6004

4.4905463

489.25

271.05

239365.6

73468.1025

132611.2

-431.93

-21.780909

9407.8281

186563.525

474.408

432.65

267.52

187186

71566.9504

115742.5

-488.53

-25.310909

12365.138

238661.561

640.64212

714.03

236.15

509838.8

55766.8225

168618.2

-207.15

-56.680909

11741.45

42911.1225

3212.7255

449.08

190.55

201672.8

36309.3025

85572.19

-472.1

-102.28091

48286.817

222878.41

10461.384

10133

3221.14

977447.6

3221130

253871.3

2499360

34198.27

avg.=

dxdy
dx dy
2

921.1827

292.8309

3887165
0.868
2499363 .5 17937 .063

ANALYSIS : Share price and book value are positively

and highly correlated. Hence any change in book value
will have direct effect in share price.

REGRESSION BETWEEN SHARE PRICE AND EPS

year

sh.price(x)

eps (y)

xy

11

1647.4

53.81

88646.59

2713927

2895.516

10

1577.95

52.78

83284.2

2489926

2785.728

1662.55

50.11

83310.38

2764073

2511.012

1143.8

33.29

38077.1

1308278

1108.224

469.75

28.26

13275.14

220665.1

798.6276

735.5

70.09

51551.2

540960.3

4912.608

811.2

27.53

22332.34

658045.4

757.9009

489.25

8.55

4183.088

239365.6

73.1025

432.65

37.01

16012.38

187186

1369.74

714.03

51.24

36586.9

509838.8

2625.538

449.08

60.07

26976.24

201672.8

3608.405

10133.16

472.74

464235.5

11833938

23446.4

total=

x=x/n

y=y/n
921.1963636

42.97636364

x on y-:

x=na+by
xy=ay+by

put value -:
10133=11a+473b.. Eq(1)
464236=473a+23446b..eq(2)
multiply eq 1 by 473 and eq 2 by 11
5106596=5203a+223729b
+4792909=5203a+223729b
(-)

(-)

313687= 0+
b=9.178

(-)
34177b
or 9.2(apprx)

put value of b in eq 1-:

10133=11*a+9.2*473
a=4351.6-10133/11 = -525.58
put value of a and b in eq-:
x=a+by
x=-525.58+9.2y

REGRESSION BETWEEN SHARE PRICE AND DPS

year

sh.price(x)

dps(y)

xy

11

1647.6

13.75

22654.5

2714586

189.0625

10

1577.95

11.25

17751.94

2489926

126.5625

1662.55

11.25

18703.69

2764073

126.5625

1143.8

6.25

7148.75

1308278

39.0625

469.75

3.75

1761.563

220665.1

14.0625

735.5

3.75

2758.125

540960.3

14.0625

811.2

4056

658045.4

25

489.25

2446.25

239365.6

25

432.65

2163.25

187186

25

714.03

3570.15

509838.8

25

449.08

7.5

3368.1

201672.8

56.25

10133.16

77.5

86382.31

11834597

665.625

total=

x=x/n

y=y/n
921.18182

7.045455

x on y-:

x=na+by
xy=ay+by
put value -:
10133=11*a+b76.. Eq(1)
86382=76*a+666*b..eq(2)
multiply eq 1 by 76 and eq 2 by 11
950202=836a+7326b
+770108=836a+5776b
(-)
(-) (-)
180094= 0+ 1550b
b=116.1
putting value of b in eq 1-:
10133=11a+116.1*77.5
a=8997.75-10133/11
a=-1135.25/11
a=-103.20

REGRESSION BETWEEN SHARE PRICE AND BOOK VALUE

year

sh.price(x)

bv(y)

xy

11

1647.6

396.19

652762.6

2714586

156966.5

10

1577.95

355.69

561261

2489926

126515.4

1662.55

350.3

582391.3

2764073

122710.1

1143.8

312.17

357060

1308278

97450.11

469.75

286.12

134404.9

220665.1

81864.65

735.5

260.45

191561

540960.3

67834.2

811.2

294.95

239263.4

658045.4

86995.5

489.25

271.05

132611.2

239365.6

73468.1

432.65

267.52

115742.5

187186

71566.95

714.03

236.15

168618.2

509838.8

55766.82

449.08

190.55

85572.19

201672.8

36309.3

10133.16

3221.14

3221248

11834597

977447.6

total

x=x/n

y=y/n
921.2

292.8309

x on y-:

x=na+by
xy=ay+by
put value -:
10133=11a+3221b.. Eq(1)
3221248=3221a+977448b..eq(2)
multiply eq 1 by 3221 and eq 2 by 11
35433728=35431a+10751928b
+32638393=35431a+10374841b
(-)
(-) (-)
2795335= 0+ 377087b
b=7.41
put value of b in eq 1-:
10133=11a+7.41*3221
a=10133-23867.61/11
a=-1248.60
putting value of a and b in eq-:
x=a+by
x=-1248.60+7.41y

GROWTH IN SHARE PRICE, EPS, DPS, AND BOOK VALUE

growth in
sh.price(x) sh.price

year

eps (y)

growth in eps

dps

book value

growth in dps

growth in book value

11

1647.4

53.81

13.75

396.19

10

1577.95

-4.215734

52.78

-1.9141424

11.25

-88.75

355.69

255.69

1662.55

5.3613866

50.11

-5.0587344

11.25

-88.75

350.3

250.3

1143.8

-31.20207

33.29

-33.566154

6.25

-93.75

312.17

212.17

469.75

-58.93076

28.26

-15.109643

3.75

-96.25

286.12

186.12

735.5

56.572645

70.09

148.018401

3.75

-96.25

260.45

160.45

811.2

10.292318

27.53

-60.721929

-95

294.95

194.95

489.25

-39.68812

8.55

-68.942971

-95

271.05

171.05

432.65

-11.56873

37.01

332.865497

-95

267.52

167.52

714.03

65.036404

51.24

38.4490678

-95

236.15

136.15

449.08

-37.10628

60.07

17.2326308

7.5

-92.5

190.55

90.55

10133.2

-45.44893

472.74

351.252022

-936.25

3221.14

1824.95

total=

avg=

-4.1317213 avg=

31.93200202 avg=

-85.1136364 avg=

Average growth in share price is -4.1317

Average growth in eps is 31.93200202
Average growth in dps is -85.1136364
Average growth in book value is 165.9045455

165.9045455