Relationship of Procter and gamble with nifty
Author: Pratik Buge MMS(Roll no : 0222010
Introduction:
Procter & Gamble (P&G) is a multinational consumer goods corporation headquartered in Cincinnati, Ohio, USA. Founded in 1837, it has become one of the world’s largest and most prominent companies in the fast-moving consumer goods industry. P&G produces a wide range of products, including personal care items, cleaning agents, and health and wellness products. Some of its well-known brands include Crest, Tide, Pampers, Gillette, and Olay. The company’s mission is to improve the lives of consumers worldwide through innovative and high-quality products.
Objective:
To calculate beta of Procter and gamble and observe its significance
Views and reviews:
- Chittranjan Dua Chairman
The last fiscal was one of the most challenging in our history with the pandemic having a significant impact on every aspect of life, business and economy. Despite the challenges, your Company remained agile and committed to serving Indian consumers and delivered strong double-digit growth during the fiscal year. In addition, the Company continued to prioritize employeehealth and well-being and stepped up as a force for good to help Communities in need during these unprecedented times.
- R. A. Shah, Chairman
It gives me great pleasure to share with you the performance of your Company for the Financial Year 2018-19. Your Company has delivered double-digit growth for the Financial Year. Our continued focus on strengthening brand fundamentals and improving productivity led us to achieving sustainable growth. In the last few months, while the economy is growing at a slower pace than expected, projections of recovery behind newly launched government initiatives are a positive sign for the industry.
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 Procter and gamble were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
|
Equation y=-0.090+0.614x +e |
(Procter and gamble = -0.090+0.614 Nifty 50 + e)
T stat for b = 3.249
R2 = 0.180
F= 10.55
The above equation do not show any relationship between nifty 50 (X) and Procter and gamble (Y). Procter and gamble runs on own fundamentals the t stat for b is 3.249 not statistically significant at 5 % level, R2is 0.180 which means 18% Y is explained by X. 82% is the error in model. 10.55 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Procter and gamble Is < 1 So The Company Is Good For Long Term Investment.