Author – Purvesh Singh
Introduction – 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 is headquartered in Indore, India.
Objective – To find out Beta of company and it’s significance.
Data Collection – Friday Closing price of Nifty 50 and NSE of Patanjali Foods Limited .
Data Analysis –
Weekly Return of the company – 1.61
(3.21 – T stat of weekly return)
observation – 46
R Square – 0.19
F value – 10.33
P Value – 0.0025
The above equation shows the relationship between Nifty 50 and Patanjali Foods Limited. Positive sign before the coefficient of Nifty 50 tell us that there is a positive relationship if nifty rises one unit our company will rise by 0.90 points and vice versa. Figure in bracket is T – Stat for Beta and the p value of which is 0.0025 which is less than 0.05 meaning beta is statistically significant. N – 46, R square is 0.19 which means 19 percent of our company return are explained by nifty 50. F – 10.33 and the P value of that is 0.0025 less than 0.05 meaning overall model is statistically significant at 5% level
Conclusion – beta > 1 and positive therefore our company is good for short term investment if nifty is at the bottom.