Relationship of Patanjali Foods Ltd with Nifty.
Author: Prerana Prakash ubale
Introduction:
Patanjali Foods. Since its incorporation in 1986 Patanjali Foods Limited, formerly Ruchi Soya Industries Limited, is an India-based company, which is engaged in the edible oil business. The Company is engaged in the manufacturing and marketing of a healthy range of edible oils and soya foods in India. The Company owns approximately 22 manufacturing units that cumulatively translate to a refining capacity of over 11000 tons per day, seed crushing capacity of 11000 tons per day, and a packaging capacity of 10000 tons per day. The Company’s brands include Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi No.1. The Company’s Nutrela soya foods products include Nutrela Soya Chunks, Nutrela Soya Granules and Nutrela Soya Mini Chunks. It also offers Nutrela High Protein Chakki Atta and Nutrela Honey. Its Biscuits Division offers Patanjali Aarogya Multi grain biscuits, Patanjali Digestive Whole Wheat cookies, Patanjali Butter cookies, Patanjali Creamfeast Chocolate Biscuit, Patanjali Creamfest Elaichi Biscuit and Patanjali Doodh Biscuits.
Objective:
To calculate beta of Patanjali Foods Ltd. And find out its significance.
𝐕𝐢𝐞𝐰𝐬 & reviews:
The aim of establish Ayurveda on a scientific basis, Yogrishi Swami Ramdev ji Maharaj & Acharya Bal Krishna ji Maharaj founded Patanjali Ayurved Ltd. in the year 2006.With the aim of establish Ayurveda on a scientific basis, Yogrishi Swami Ramdev ji Maharaj & Acharya Bal Krishna ji Maharaj founded Patanjali Ayurved Ltd. in the year 2006. The concept of forming this Company was to link the rising destiny of millions of rural masses on the one hand and many more suffering and leading unhealthy urban life style on the other.
The main aim was to give maximum benefit to the farmers of the country and to provide Swadeshi products at each and every corner of the country. With this aim, industrial units equipped with ultra-modern machineries work towards making the ancient, traditional and classical knowledge of Ayurveda reach the common man in its purest form. The manufacturing units follow the latest standards of quality like GMP, GLP, GPP, ISO and OHSAS. Here, new research merges with old traditions. The discoveries made by the ancient sages are being used to produce modern products with new research, keeping the natural taste intact and providing maximum benefits.
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 Patanjali food Ltd were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
𝐃𝐚𝐭𝐚 analysis:
Equation y= – 0.024 + 0.99 x + e (Patanjali Food Ltd = – 0.024 + 0.99 Nifty 50 + e)
T stat for b = 2.04
R2 =0.0799
F= 4.16
The above equation do not show any relationship between nifty 50 (X) and sun tv(Y). sun tv runs on own fundamentals the t stat for b is 2.04 not statistically significant at 5 % level, R2is 0.0799 which means 7.99% Y is explained by X. 92.01% is the error in model 4.16 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
Because the Beta Of Patanjali Food Ltd Is < 1 So The Company Is Good For Long Term Investment.