Relationship of Nestle India with Nifty
Author: Nutan Rasal
Introduction:
Nestle India Is a Prominent Subsidiary of Nestle One of the World’s Largest Food And Beverage Companies. Operating in India Since 1912, Nestle India Has Established Itself as a Key Player in the Country’s Food Industry. It Offers A Diverse Range Of Products, Including Beverages, Dairy Products, Chocolates, Confectionery, And Culinary Items. With A Commitment to Quality and Nutrition, Nestle India Has Become A House Hold Name, Known for Its Popular Brands Such As Maggi, Nescafe, Kit Kat, And More. The Company’s Focus on Innovation and Sustainable Practices Has Contributed to Its Widespread Presence and Influence in the Indian Market.
Objective:
To calculate beta of nestle India and observe its significance.
Views and reviews:
Suresh Narayanan Chairman & Managing Director
1. We are committed to the PLANET through the sustainable use of resources
Climate change is one of the biggest challenges currently facing mankind. The next decade will see the introduction of products with lower carbon footprint, and a move to sustainable packaging. The power to accelerate this change will require a multi-stakeholder approach, bringing industry, government, multilateral agencies and local community to collaborate and monitor progress, laying the foundation for a better world. Your Company has been accelerating its actions to reach net zero greenhouse emissions by 2050 while ensuring high levels of productivity.
2. We delivered a strong PERFORMANCE and are committed to Make in India and Made in India
Your Company is proud of its 108-year long association with the nation and as a vindication of this confidence and trust, we plan to invest ` 26 Billion over the next three to four years. Further, resonating with consumer needs during evolving times, we introduced a range of product and marketing innovations in line with new normal.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of Nestle India were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
Equation y=0.28 – 0.072 x + e (Nestle India = 0.28 – 0.072 Nifty 50 + e)
T stat for b = -0.34
R2 =0.0024
F= 0.1126
The above equation show any relationship between nifty 50 (X) and nestle India (Y). Nestle India runs on own fundamentals the t stat for b is -0.34 not statistically significant at 5 % level, R2 is 0.0024 which means 0.24% Y is explained by X. 99.76% is the error in model. 0.1126 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Nestle India Is < 1 So The Company Is Good For Long Term Investment.