REPORT
Title: Relationship of Procter & Gamble Hygiene and Health Care Limited (PGHH) with Nifty50
Author: Pranoti Limaye
Batch: F1
Roll No: 21230023319
Introduction:
Procter & Gamble Hygiene and Health Care Limited is an India-based fast-moving consumer goods (FMCG). The Company is engaged in manufacturing and selling branded packaged FMCG in the feminine care and healthcare businesses. The Company has two segments: Health care products and Hygiene products. Health care products segment comprises ointment and creams, cough drops and tablets. Hygiene products segment comprises feminine hygiene products and other skin care hygiene products. It offers ayurvedic products, sanitary napkins, and deodorants. The Company’s brands portfolio includes Whisper, Vicks and Old Spice. Its product portfolio includes Whisper Choice XL, Whisper Choice Ultra, Vicks VapoRub, Vicks Throat Drops, Vicks Action 500 Advanced, Vicks Inhaler, Vicks Baby Rub growth and others. The Company’s products are sold through retail operations, including mass merchandisers, grocery stores, membership club stores, drug stores, department stores and high-frequency stores.
View and Reviews:
Motilal Oswal recommended Neutral rating on Procter and Gamble Hygiene and Health care with a target price of Rs 16,940 in its research report dated September 23, 2023. The market in which the company deals is still underpenetrated, offering ample opportunities for growth. The management expects mid-single digit volume growth over the next four to five years and believes that bottom-line growth will outpace the top-line growth.
Data Collection:
Data was downloaded from nseindia.com from 01/11/2022 to 31/10/2023 for Nifty50 and for PGHH. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for them. Returns for X and Y were calculated, X being Nifty50 and Y being PGHH. Data Analysis was conducted.
Data Analysis:
Equation: Return of PGHH = 0.3456 +0.4796 (Return of Nifty 50)
(2.331835) = t-stat for b
R Square = 0.1036
F = 5.4374
The above equation shows the relationship between Nifty 50 and PGHH. Return of PGHH is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases PGHH also increase. If Nifty50 price rises by 1 unit, PGHH share price will falls by 0.4796 and vice versa. No of observation are 49. Figure which is written in bracket that is (2.331835) is t- stat for b. The P value for which is 0.2348 which means Nifty 50 is not statistically significant at 5% level. R square 0.1036 is which means 10.36% of variances in PGHH share price are explained by Nifty 50 in other words 0.0658 is error means 6.58% is due to the variables which are not in the model. F is 5.4374. Overall model is not statistically significant at 5% level.
Conclusion:
Beta is 0.4796 which is less than 1, therefore it is good for long term investment.
References: