Title: – Relationship of Jubilant Foodworks with Nifty 50
Author: – Jayesh Devidas Pardeshi (MMS First Year, Roll no. 0222106)
Kohinoor Business School, Kurla.
Introduction: – Jubilant Foodworks Limited is India’s largest food company and is part of the Jubilant Bhartia Group. Founded in 1995, the company owns the exclusive master franchise rights from Domino’s Pizza Inc. to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. It has a solid and extensive network of 1,838 Domino’s restaurants in 394 cities in India. Jubilant Foodworks also has exclusive rights to develop and operate Dunkin’ restaurants in India and Popeyes restaurants in India, Bangladesh, Nepal and Bhutan. The company currently operates 21 Dunkin’ restaurants in six Indian cities and 17 Popeyes restaurants in four cities. In 2019, Jubilant Foodworks launched its first restaurant brand “Hong’s Kitchen” in the Chinese cuisine segment, which now has 15 restaurants in three cities.
Objective: – To Calculate the Beta of Jubilant Foodworks and find out its significance.
Views and Reviews: –
Avinash Kant Kumar, President of Jubilant Foodworks Limited, commented on the occasion “We are delighted to introduce ‘Taste Tibet’ Food Festival to our guests at Hong’s Kitchen restaurants. This offers them a chance to explore the captivating flavors of Tibet. Our chefs have been diligent in ensuring each dish truly represents the essence of Tibet cuisine. This festival embodies the rich culinary diversity that Indo-Chinese cuisine has to offer, and we eagerly anticipate sharing this experience with our patrons.”
(Dutta, 2023)
Sandeep Anand, Executive Vice President & Chief Marketing Officer at Domino’s India, expressed his enthusiasm about the new offer, stating, “We are delighted to introduce the Freedom Feast Offer in conjunction with the 76th Independence Day celebrations. This occasion signifies freedom, unity, and shared moments. Through this exclusive offer, we aim to elevate our customers’ festivities and provide them with an opportunity to relish exceptional food experiences with their loved ones.” (ANI, 2023)
Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Jubilant Foodworks (i.e. Y) were calculated.
Data Analysis: – Equation “Y=-0.1348-0.5586(X)”
(tstat = 1.7987)
n = 50, R2 = 0.0631, F = 3.2352
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Jubilant Foodworks (y) the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 0.5586, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. 1.7987 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.0631 means 6.31% of y is explained by x. As the calculated value of F =3.2352 is less than the tabulated F (F 0.05,1DF,49DF) = 4.038, the overall model is not statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
Conclusion:
If b<1, Jubilant Foodworks share is good for long term investment.
References
ANI. (2023). NewsVoir. ANI, 2. Retrieved from https://www.aninews.in/news/business/business/dominos-makes-independence-day-extra-delightful-launches-freedom-feast-offer20230811114412/
Dutta, S. (2023). Hong’s Kitchen Introduces a Flavourful Journey with ‘Taste Tibet’ food. Hong’s Kitchen, 2. Retrieved from https://www.jubilantfoodworks.com/Uploads/Files/748jf-Hong-s-Kitchen.pdf