TITLE: Relationship of Patanjali Foods Limited with Nifty Fifty and to calculate Beta.
AUTHOR: Priyanka Vishal Jadhav (MBA-HRM)
INTRODUCTION: Patanjali Ayurved is an Indian multinational conglomerate holding company, based in Haridwar. It was founded by Ramdev and Balkrishna in 2006. Its office is in Delhi, with manufacturing units and headquarters in the industrial area of Haridwar. The company manufactures cosmetics, ayurvedic medicine, personal care and food products. Our efforts in the sectors of social welfare, health, philosophy and spirituality are guided by our values. We consider ‘guru satta’ and ‘bhagwat satta’ above everything else. We believe in optimum utilization of our capabilities for the betterment of the society. Our functionality and concepts make us a distinguished organization.
OBJECTIVE: To calculate Beta of Patanjali Foods Limited and see its significance.
LITERATURE REVIEW :
- Ruchi Soya to acquire Patanjali Ayurved’s food retail business for Rs 690 crore; rename itself as Patanjali Foods – Mumbai. 18 May 2022
Ruchi Soya Industries on Wednesday announced it will acquire Patanjali Ayurved’s food retail business for Rs 690 crore. The acquired food business comprises of 21 major products namely ghee, honey, spices, juices and atta, etc., the company informed in an exchange filing. The acquisition is valued at a Fair Market value (Net) of Rs 690 crore based on all the fixed assets of Food division & respective current assets on slump sale basis,” the company statement said. Ruchi Soya will also get the manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra. The company said that the Patanjali Ayurved Ltd’s Board has also approved this transfer of food business to Ruchi Soya with an effective date of May 09. The entire transaction is likely to be completed by July 15, 2022, the company statement said. This strategic initiative for acquisition of food business shall strengthen its food product portfolio with array of brands and also contribute to the growth in terms of revenue and EBIDTA, the FMCG firm said. Additionally, the company informed that its Board has approved the change in the name of the firm to “Patanjali Foods Limited”.
- Patanjali Foods Net Doubles – New Delhi. 09 Nov 2023.
Patanjali Foods reported more than double the net profit for the quarter to September at `255 crore, compared to `112.3 crore in the year-ago period, on the back of lower commodity costs. The increase in net profit was also due to other income, which increased to `24 crore from `10.5 crore a year ago, and improved operational performance, the company said on Wednesday. Company’s revenue declined 8.1% year-on-year to `7,821 crore from `8,514 crore, dragged down by a double-digit drop in revenue in its mainstay edible oils business. The company said it is in the process of developing an employee stock option plan 2023. Patanjali Foods also said in a statement that it has signed cricketer MS Dhoni as its first brand ambassador for its Mahakosh and Sunrich edible oil brands.
DATA COLLECTION: The data for Nifty and Equity for Patanjali Foods Limited has been downloaded from finance.yahoo.com for the period 1st Nov 2022 to 31st Oct 2023. The data was manipulated for closing price of nifty and equity. The weekly returns of nifty and equity were found.
DATA ANALYSIS: Equation Patanjali Foods Limited = -0.203 + 0.006Nifty
n= 48, f=0.184, R Square= 0.03
The above equation shows the relationship of Patanjali Foods Limited with Nifty. If Nifty rises by 1unit, Voltas will rise by 0.006unit.
t-stat= 0.429 and p value is 0.669, which is more than 0.05 , so b=0 , meaning Nifty does not impact Patanjali Foods Limited shares.
R square is 0.03, meaning 3% Voltas Ltd shares is explained by Nifty , meaning 97% depends on other things like fundamentals.
F= 0.184 and p value is more than 0.05, so the model is not statistically significant at 5% level
REFERENCES:
Ruchi soya to acquire patanjali Ayurved’s food retail business for rs 690 crore; rename itself as ‘Patanjali foods’. (2022, May 18). Indian Express Retrieved from https://www.proquest.com/newspapers/ruchi-soya-acquire-patanjali-ayurved-s-food/docview/2666301797/se-2
Patanjali foods net doubles [companies]. (2023, Nov 09). The Economic Times (Online) Retrieved from https://www.proquest.com/newspapers/patanjali-foods-net-doubles-companies/docview/2887129422/se-2
