Relationship of Dabur India Pvt. With Nifty50

Dikshita Shah (MMS – JDBIMS 2021-23)

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of over Rs 7,680 Crore & Market Capitalisation of over Rs 48,800 crore. Building on a legacy of quality and experience of over 133 years, Dabur is today India’s Most Trusted Name and the World’s Largest Ayurvedic and Natural Health Care Company.

Calculate beta of Dabur India Pvt. and see its significance.

Data Collection:
Data for Dabur India Pvt. and Nifty50 has been downloaded from nseindia.com website. The data was edited and corrected on excel. Further, the data analysis was done using the functions of excel.

Data analysis:
Equation in the form of Y= a + b(X)
Y= Dabur India Ltd. (Equity)
X = Nifty50 Returns
a = intercept and b = slope
Hence the equation:
Y= -0.29935883 + 0.276988459 X
Dabur Returns = -0.29935883 + 0.276988459 * (Nifty50 Returns)
N=44, R2 = 0.048, F = 2.15

If X rises by 1 unit Y will fall by 0.276988459 and vice versa. Given figure, 1.466306841 is the t-stat for b. The p value for b is 0.15 which is greater than 0.05 which means b is statistically insignificant at 5% level. R2 is 0.048 which means 4.8 % of Y is explained by X. F is 2.15 and the value for which is 0.1500 which is greater than 0.05 it means overall model is statistically insignificant at 5% level.