Author: Monisha Karthikeyan
INTRODUCTION
Marico Limited is an Indian multinational consumer goods company providing consumer products and services in the areas of health, beauty and wellness. With its headquarters in Mumbai, Maharashtra, India, Marico is present in over 25 countries across Asia and Africa. It touches the lives of one out of every three Indians through its portfolio of brands such as Parachute, Saffola, hair & Care, Parachute Advanced, Nihar Naturals, Mediker and many more. It owns brands in categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care.
As of 2019–20, the company generated a turnover of ₹7,315 crores. Marico has 8 factories in India located at Pondicherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib.
Harsh Mariwala is the chairman and Saugata Gupta assumed the role of the managing director in March 2014 and is currently the MD and CEO of this organisation.
Marico Limited was established on 13 October 1988 under the name of Marico Foods Limited. Later in 1989 the name of the company was changed from Marico Foods Limited to Marico Industries Limited. The first international office for Marico was set up in Dubai in year 1992. Marico was first listed on Indian stock exchange in 1996.
OBJECTIVE
To calculate beta of the company and find its significance
VIEWS AND REVIEWS
• MARICO’S CSR VISION IS ANCHORED IN ITS CORE PURPOSE, I.E. TO “MAKE A DIFFERENCE” TO THE LIVES OFF ALL ITS STAKEHOLDERS TO HELP THEM ACHIEVE THEIR FULL POTENTIAL.
• At Marico, the idea of social responsibility is viewed from the perspective of moral and ethical duty rather than an obligation.
• Marico has created a CSR culture which empowers its members to actively give back to society in simple yet impactful ways. Members at different locations of Marico come together to support big and small causes.
• Allowing diversity of opinion by listening without bias., giving & receiving critique, with mutual respect and trust for the other..
DATA COLLECTION
Data of index and equity were collected from https://www1.nseindia.com/ and https://www.nseindia.com/ respectively. Daily returns from 1st March-2021 to 28 Feb-2022 were downloaded in excel format from these websites and it was sorted into weekly format. Then weekly returns were calculated for both index and equity and then regression analysis was done.
DATA ANALYSIS
Predicted Y = 0.058006+0.505015X
N=46, R Square= 0.024682
F= 1.088166
Tstat (beta) = 1.043152
Tstat (0.05,45)= 2.0141
The above regression equation tells us the relationship between X and Y. Where X is NIFTY’s weekly returns and Y is MARICO Ltd’s weekly returns.
The positive sign of Beta tells us the that there is a positive relationship between NIFTY and MARICO Ltd’s weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 0.505015 units.
T calculated is more that T tabulated which means, β is statistically significant at 5% confidence level.
R^2 is 0.024682 which means 2.4% of Y (MARICO Ltd) is explained by X. And the balance is explained by error.
F is 1.088166 which is more than table value which means model is statistically significant at 5% level.
CONCLUSION
β is statistically significant in case of NIFTY and MARICO Ltd. Also, it can be concluded that MARICO Ltd is a medium beta share. Since it is around than 1.