TITLE: Relationship of Dabur India Ltd. with Nifty50
AUTHOR: Dhruv Gheewala
Batch = Finance 3 (F3) ITM Business School
INTRODUCTION: Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and headquartered in Ghaziabad.] It manufactures Ayurvedic medicine and natural consumer products,] and is one of the largest fast-moving consumer goods (FMCG) companies in India. Dabur derives around 60% of its revenue from the consumer care business, 11% from the food business and remaining from the international business unit.
OBJECTIVE: To calculate beta and find its significance.
VIEWS AND REVIEWS: India’s leading Science-based Ayurveda major Dabur India Ltd today announced a 11% growth in Consolidated Revenue for the First Quarter of 2023-24 to cross the Rs 3,000 Crore mark for the first time in the first quarter, driven by strong double-digit growth in both HPC and HC businesses. The Ql Revenue growth stands at 13.3% on Constant Currency basis.
Dabur’s International Business reported a 20.6% growth in constant currency terms. The Turkey business reported a 51.2% growth, while the Egypt business grew by 45.7%, Sub-Saharan Africa by 13% and MENA by 10.2%.
DATA COLLECTION: Nifty and Dabur India Ltd. closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return of Dabur India Ltd is termed as “Y”. besides that, a few other things written in this report are taken from other websites and its information is provided in references.
DATA ANALYSIS:
Equation: Y = 190.7300781+ 0.014324271X
- of Observations = 49
R-square = 0.357059977
F-static = 26.1016864
P-value = 0.000005814
INTERPRETATION:
The above equation shows the relation between Nifty50 and Dabur India Ltd.
Return of Dabur India Ltd. is dependent variable and return of Nifty50 is independent variable.
Negative sign means if Nifty50 is less by 1 unit then share price Dabur India Ltd will also less by 0.357059977 and vice-versa.
Number of observations are 49.
3.716113296 is the t-stat for Y, the p-value for which is 0.000005814
R square is 0.357059977 which means 0% of variances in Dabur India Ltd. are explained by Nifty.
F is 26.1016864, p-value for this 0. 000005814 which means model is statistically significant at 1% level.
CONCLUSION: Beta is 190.7300781 which is more than 1, it means that Dabur India Ltd.is good for short term investment.
REFERENCES:
https://www.nseindia.com/get-quotes/equity?symbol=DABUR
https://www.niftyindices.com/reports/historical-data