Report
Title: Relationship of P&G health ltd with Nifty
Author: Prakhar Kankane
Introduction: Procter & Gamble health ltd is a multinational consumer goods corporation headquartered in Cincinnati, Ohio, USA. Established in 1837 by William Procter and James Gamble, P&G health ltd has grown to become one of the world’s largest and most successful companies in the fast-moving consumer goods (FMCG) industry. The company’s diverse portfolio includes a wide range of household and personal care products, such as cleaning agents, beauty and grooming products, health care items, and more.
P&G health ltd is known for its iconic brands, including Tide, Pampers, Gillette, Crest, and Olay, among others. The company’s commitment to innovation, research, and development has played a significant role in shaping the consumer goods landscape. P&G’s health ltd emphasis on understanding and meeting the evolving needs of consumers has contributed to its enduring success and global presence. As a leader in sustainability and corporate responsibility, P&G also strives to make a positive impact on communities and the environment.
Objective: To calculate Beta and find its significance.
Views and Reviews: Procter & Gamble Hygiene and Health Care Ltd. is a consumer goods company, which is engaged in the manufacturing, marketing and distribution of healthcare, feminine hygiene, and personal care products. The healthcare business includes Vicks vapo rub, Vicks cough drops, Vicks inhaler and Vicks action 500 brands. The feminine hygiene business offers whisper ultra and whisper choice. Procter & Gamble Hygiene and Health Care was founded on July 20, 1964, and is headquartered in Mumbai, India.
Data collection: Data was downloaded from nseindia.com for Nifty as well as for P&G. All the columns were deleted for the sheets except date and closing price and the Friday closing price were found for both of them. Returns for X and Y were calculated, X being Nifty and Y being PNB. Finally, data analysis was done.
Data analysis: Regression Equation
Y = 0.3897+0.1080X (Return of Nifty50)
R square = 0.0022 (0.3272)
In the above equation shows the relationship between Nifty 50 and P&G share. Return of P&G is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty 50 price rises, P&G share price rises. If Nifty 50 price rises 1 unit, P&G share price will rise by 0.1080 unit & vice versa. No of observation are 49. Figure which is written in bracket 0.3272 is t stat for b. The P value for which is 0.744 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.0022 which means 0.22% of variances in P&G share price are explained by Nifty 50 in other words 99.78% is error means 99.78% is due to the variables which are no in the model. F is 0.1070. Overall model is statistically significant at 1% level.
Conclusion: If Beta is less than 1, it is good for long term investment. If Beta more than 1, it is good for short term investment. So, beta is here less than 1 means this is good for long term investment
References:
https://www.forbes.com/companies/procter-gamble-hygiene-health-care