TITLE: RELATIONSHIP OF HINDUSTAN UNILEVER LTD.WITH NIFTY50
AUTHOR: Harshita Bhadra (021330024214)
INTRODUCTION: Hindustan Unilever
- Hindustan Unilever Limited (HUL) is one of India’s largest fast-moving consumer goods (FMCG) Companies
- Founded: 1933 as Lever Brothers India Limited
- CEO: Rohit Jawa
- Its stock closed at rs2,848.75 with a weekly decline of 3.96%.
- Revenue: Rs 96,707 crore
- Net profit: Rs 8,345 crore
- EPS: Rs 43.98
Object: To find out the beta (β) of HUL and its significance.
Data Collection: The data was collected by taking the weekly return of NSE (National Stock Exchange) , NIFTY50 and HUL of dated time period of 1 year from 1st May 2023 to 30th April 2024 with the help of the NSE site. Friday’s closing price and weekly return were calculated by formula.
(YT+1-YT)/YT *100.
The weekly return of Nifty was taken as (X) in terms of company (HUL) as Y is taken. Y was regressed on X.
Data analysis: Regression equation; Y (Intercept)= HUL + NIFTY 50 (weekly return of nifty)
Relationship of Nifty 50 and HUL = 0.27 + (-0.02)
(-0.07){t-stat})
N = 49, = 0.000096, F = 0.004, P(VALUE)= 0.38
The above equation shows the relationship between Nifty 50 and HUL, the negative sign before the co-efficient of Nifty 50, Tells us that there is a negative relationship if the nifty rises by 1unit, company will fall by 0.27
And vice versa as the co-efficient of t stats as (-0.07) for beta. The p-value for which is 0.39which is more than 0.05 meaning beta is not statistically significant.
N=49, = 0.000096 which means 0.0096% of HUL returns are explained by Nifty 50. Other (99.99%) are variables explained not in the model.
f= 0.004 and the value for that variable is 0.94, which is more than 0.050 meaning the overall model is not statistically significant at a 5% level.
Conclusion: As per the given data of RELATIONSHIP OF HINDUSTAN UNILEVER LTD WITH NIFTY50. We know that:- beta value i.e (-0.02) is negative, means the company (Hindustan Unilever Ltd.) is not good for investment. Showing interest in investment is not beneficial.V