Author : Misbah Pathan

Marico Limited is an Indian multinational consumer goods company providing consumer products and services in the areas of health, beauty, and wellness. It is one of India’s leading consumer goods companies operating in the global beauty and wellness categories. The Company offers various brands in hair care, skin care, edible oils, healthy foods, hygiene, male grooming, fabric care, etc.

Calculate the Beta of Marico LTD and see its significance.

Data Collection:
We have downloaded the data of Marico Limited and Nifty-50 dated from 1st April 2021 to 31st March 2022 from the website of National Stock Exchange. The data for this period, Nifty equity is downloaded by CSV file. Firstly, we have taken the data and after deleting all the columns except date and closing stock we have added the weekday column in the data using weekday function of excel. Then we have added another column named as Return Column named as X for nifty and same Y for equity which will be regression.

Data analysis:
Equation in the form of Y= a + b(X)
Y= Marico Limited company (Equity)
X = Nifty- 50 Returns
a = intercept and b = slope
Hence the equation,
Y = 0.98032252 + (0.29486375) X
Marico Returns = 0.98032252 + (0.29486375) *(Nifty 50 Returns) (189.0808)
N= 43, R2 = 0.03724 and F = 1.50852

The above equation tells us the relationship between X & Y.
If x rises by 1 unit, y will fall by 0.98 and vice versa. The p value which is greater than 0.05 means be is statistically insignificant at the 5% level. R2 is 0.03724 which means 0.30% of y is explained by x. F is 1.50 for which the value is greater, meaning that the overall model is statistically insignificant at the 5% level.