Bloomberg Group Assignment, CorpFin 2022-23
Group No - 6 Sector - Materials
Student Name Roll No Company Name Ticker Country
(India or US)
Snehanshu 2317043 PCBL LTD PCBL IN Equity India
Mishra
Sanket Gaggar 2311314 GALAXY GALSURF IN India
SURFACTANTS LTD Equity
Sakshi 2311328 LIVENT CORP LTHM US Equity US
Deekshith NS 2317046 TRONOX HOLDINGS TROX US Equity US
PLC
A.M.Sarguru 2311310 MINERALS MTX US Equity US
TECHNOLOGIES INC
Analysis:
Company 𝜷𝑬 TL&E TE Market 𝑬 𝑫 𝜷𝑨
Name Cap
PCBL 0.915 47847.2 26222.3 99159.4 99159.4 21624.9 0.794
mil INR mil INR mil INR mil INR mil INR
Galaxy 0.536 26005.5 15743.5 99599.5 99599.5 10262 0.500
Surfactants mil INR mil INR mil INR mil INR mil INR
Livent Corp 1.699 2074.2 1443.0 2970.5 2970.5 631.2 1.455
mil $ mil $ mil $ mil $ mil $
Tronox 1.460 5987.0 2042.0 2035.2 2035.2 3945 0.577
Holdings mil $ mil $ mil $ mil $ mil $
Minerals 1.046 3401.6 1613.2 2210.1 2210.1 1788.4 0.638
Technologies mil $ mil $ mil $ mil $ mil $
INC
Average unlevered asset beta = 0.793
Offer your best explanation for the differences or similarities in the company-specific asset
beta values vis-à-vis the average asset beta.
Capital Structure: Variances in the proportion of debt and equity in a company's capital
structure can influence beta values. Companies with higher debt might have higher asset beta
due to increased financial risk. D/E ratio for US companies is significantly higher as compared to
Indian companies.
Geographical Location: Companies operating in different regions may face different economic
conditions, regulatory environments, and market dynamics, leading to variations in risk profiles.
Industry Factors: Differences in industries can impact beta values. For example, Livent Corp,
involved in the lithium industry, might face different factors affecting volatility compared to
companies in the chemicals or minerals industries.
Operational Efficiency: Efficient operations and effective risk management practices can
contribute to lower beta values, indicating lower overall risk.
Asset Beta:
1
PCBL (Indian company) - 0.794: PCBL has an asset beta below 1, indicating that its assets are
less volatile than the overall market.
Galaxy Surfactants (Indian company) - 0.5: Galaxy Surfactants also has an asset beta below 1,
suggesting that its assets are less volatile than the market average.
Livent Corp (US company) - 1.455: Livent Corp's asset beta is higher than 1, indicating that its
assets are more volatile than the overall market.
Tronox Holdings (US company) - 0.577: Tronox Holdings has an asset beta below 1, suggesting
that its assets are less volatile than the market average.
Minerals Technologies INC (US company) - 0.638: Similar to Tronox Holdings, Minerals
Technologies INC has an asset beta below 1, indicating lower volatility compared to the market
average.
Equity Beta:
PCBL - 0.915: PCBL's equity beta is below 1, suggesting that the company's stock is less volatile
than the overall market.
Galaxy Surfactants - 0.536: Galaxy Surfactants also has an equity beta below 1, indicating lower
volatility in its stock compared to the market.
Livent Corp - 1.699: Livent Corp's equity beta is significantly higher than 1, suggesting that its
stock is more volatile than the overall market.
Tronox Holdings - 1.460: Tronox Holdings has an equity beta above 1, indicating higher
volatility in its stock compared to the market average.
Minerals Technologies INC - 1.046: Minerals Technologies INC has an equity beta slightly above
1, suggesting somewhat higher volatility compared to the market average.
On the following pages, paste images of the 3 screen-shots, per company showing (i) 𝛽𝐸 , (ii) Total
Liabilities, and Total Equity, and (iii) and E.
PCBL:
2
Galaxy Surfactants:
3
4
Livent Corp:
5
Tronox Holdings:
6
7
Minerals Technologies INC:
8
9
