Title- Relationship of Dabur India Limited with Nifty50.
Author- Divya Santosh Ware (FYMMS-B, Roll no. 128).
Introduction- Dabur India Ltd. Is one of the India’s leading FMCG company. Dabur today operates in key consumer product categories like Health Care, Hair Care, Oral Care, Skin Care, Home Care, Hygiene and Food & Beverages. Dabur India is also a world leader in Ayurveda. The 139-year-old Ayurvedic company promoted by the Burman family, started operations in 1884 as an ayurvedic medicines company. Its products today are available in over 120 countries across globe covering 7.7 million retail outlets with high penetration in urban and rural markets.
Objective- To calculate beta of Dabur and find out its significance.
Views & Reviews-
Mohit Burman (Vice-President of Dabur) in reports announced that “Dabur is now 100% Plastic Waste Neutral Company, having collected, processed, and recycled around 27,000 MT of post-consumer plastic waste from all over India in fiscal 2021-22”. To preserve biodiversity, they are aiming to achieve no net loss of biodiversity by 2030 and become water positive by 2030, through a series of programs aimed at creating a positive water balance within operations and in communities.
Data Collection: Data is taken from 01-06-2022 to 30-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Dabur India Limited (i.e. Y) were calculated.
Data Analysis: Equation: “^Y= -0.0038+0.6601x”
(tstat = 2.8319)
n = 50 , R2 = 0.14 , F = 8.0196
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Dabur India Limited(y) positive sign means a positive relationship meaning if “x” rise “y” rises and vice versa. If “x” rises by 1 unit, “y” rises by 0.6601 units, “n” means there are 50 observations, and figures in brackets are tstat for “b”,so “b” is statistically significant at 5% level. Calculated tstat b i.e. is 2.8318 is higher than tabulated t (t0.05,49DF=1.677) So reject H0 and accept H1. R^2 is 0.143 which means 14.3% of y is explained by x. Balanced 85.7% is error due to the variables which are not in model. F is 8.0196 which is more than the tabulated value 4.043 so overall the model is statistically significant at 5% level.
Conclusion:
The beta value for Dabur India Limited is 0.006. Therefore, the share is good for long term investment.