Relationship Between Nifty and Patanjali Food Ltd
Author: Pooja Manohar Kadam
Introduction: Patanjali Foods Ltd is founded in 2006 by Ramdev and Acharya Balkrishna. Patanjali Foods, formerly known as Ruchi Soya Industries Ltd, is an Indian multinational Fast-moving consumer goods company specialized in the food industry, part of the Patanjali Ayurved. It headquarter in Indore, India.
Objective: To calculate Beta and its Significance
Literature Review:
1) Market Analysis of Patanjali Food Limited: A Case Study. This paper provides an in-depth analysis of Patanjali Food Limited, focusing on its market position, growth trajectory, and competitive strategies. The study utilizes both primary and secondary data sources, including company reports, market research, and industry analyses. The findings highlight Patanjali’s rapid expansion in the Indian food market, driven by its emphasis on natural and Ayurvedic products, aggressive pricing strategies, and extensive distribution network. The paper also discusses challenges faced by the company, such as quality control issues and increased competition from multinational corporations. Overall, the analysis sheds light on Patanjali Food Limited’s unique approach to capturing market share in the highly competitive food industry.
Reference: Sharma, R., & Gupta, S. (2019). Market Analysis of Patanjali Food Limited: A Case Study. International Journal of Management Studies, 6(2), 45-58.
- Consumer Perception and Buying Behavior Towards Patanjali Food Products. This study examines consumer perception and buying behavior towards Patanjali Food products in the Indian market. Through a combination of surveys and interviews, the research explores factors influencing consumers’ preferences for Patanjali products, including perceived health benefits, affordability, and trust in the brand. The findings reveal a strong positive perception of Patanjali products among consumers, with many associating them with natural ingredients and traditional Ayurvedic principles. However, the study also identifies areas for improvement, such as concerns regarding product quality and consistency. Overall, the research provides valuable insights into the factors shaping consumer behavior in relation to Patanjali Food Limited’s product offerings.
Reference: Jain, P., & Singh, A. (2020). Consumer Perception and Buying Behavior Towards Patanjali Food Products. Journal of Consumer Studies, 14(1), 25-38.
Data Collection: The Nifty 50 data and Patanjali food ltd has been downloaded from NSE site from the period 01/02/2023 to 31/01/2024 and data has been manipulated to get for Friday closing prices. Friday closing price for Nifty50 is ‘x’ and Friday closing price for Patanjali food ltd is ‘y’.
Data Analysis: The standard equation is : Y = a + b*X
Where,
X = Nifty 50 Returns
Y = Patanjali Foof Ltd Returns
Y was Regress on X
Therefore the equation becomes,
Y = -0.344779164+0.048322107*X
Equity = -0.344779164+0.048322107* Nifty
N = 25
R^2 = 0.000967155
F = 0.022266
Interpretation: The above equation shows relationship between Nifty 50 & Patanjali Food Ltd. Nifty 50 is dependent variable and Patanjali Food Ltd is dependent variable.
The negative sign in equation means that there is an inverse relationship between Nifty 50 & equity of Patanjali Food Ltd i.e., if the return Nifty 50 increases then the return of Patanjali Food Ltd will decreases & vice versa.
The no. of observation is 25.
Rsquare = 0.000967155 which means 0.09% of Patanjali Food Ltd is explained by Nifty 50 99.91% are errors which are not in model figures & brackets are t-stat is R-square. The t-stat value of this is F= 0.022266, which means overall model is statistically significant at 5 % level.
Conclusion: β = 0.048322107 which is greater than 1, then we should invest for short time.
Reference: Sharma, R., & Gupta, S. (2019). Market Analysis of Patanjali Food Limited: A Case Study. International Journal of Management Studies, 6(2), 45-58.
Jain, P., & Singh, A. (2020). Consumer Perception and Buying Behavior Towards Patanjali Food Products. Journal of Consumer Studies, 14(1), 25-38.