Title: Relationship of Dabur India with Nifty50.
Author:
Divyanshu Singh
Introduction
Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman in 1884, headquartered in Ghaziabad. Dabur today operates in key consumer product categories like Health Care, Hair Care, Oral Care, Skin Care, Home Care, Hygiene and Food & Beverages. The ayurvedic company has a wide distribution network, covering 7.7 million retail outlets with a high penetration in urban and rural markets.
Dabur’s products also have huge presence in the overseas markets and are today available in over 120 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe, and Russia. Dabur’s overseas revenue today accounts for over 25% of the total turnover.
Objectives:
To calculate beta and find its significance.
Views & Reviews:
Dabur’s strong brand presence in FMCG staples and Ayurveda positions it well for long-term growth (20% YTD gain), but premium valuation (₹566, high P/E & P/B) demands caution. While consistent dividend payouts and rural market focus are attractive, potential margin pressure from inflation and competition, along with recent muted growth, warrant a “cautiously optimistic” stance. Analyse thoroughly before diving in.
Data Analysis:
Equation: Y= 0.196309108517655+ 0.176213326028156x
Interpretation:
In the above equation shows the relationship between Nifty 50 and Dabur share. Return of Britannia is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, Dabur share price falls. If Nifty 50 price rises 1 unit, Dabur share price will fall by 0.3328 unit & vice versa. No of observation are 50. Figure which is written in bracket 1.3723 is t test for b. The P value for which is 0.440289576 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.012724507 which means 1.27% of variances in Dabur share price are explained by Nifty 50 in other words 0.440289576 % is error means 96% is due to the variables which are no in the model. F is 1.8833. Overall model is statistically insignificant at 5% level.
Conclusion:
Beta is 0.1963 is less than 1 it means Dabur is good for long term investment.
References:
https://www.nseindia.com/reports-indices-historical-index-data