Author: Bhavya Paliwal (021330024098).
Introduction: Britannia Industries Limited is one of India’s leading food companies, known for its wide range of biscuits, dairy products, and bakery items. Established in 1892, the company has grown into a household name with iconic brands like Good Day, Marie Gold, and Tiger. It operates in both domestic and international markets, focusing on innovation and quality. Listed on the BSE and NSE, Britannia’s shares are popular with investors due to its steady growth and blue-chip status, offering reliable returns.
Objective: To Find out beta and significance of Britannia Industry Limited.
Data Collection: Data of Britannia Industry Limited and Nifty 50 is taken from 01/05/23 to 30/04/24 downloaded from NSE. The data is manipulated to get Friday closing prices. Weekly return of Nifty 50 is taken as (x) and Britannia Industry Limited is calculated. Weekly return of Britannia Industry Limited was regressed on weekly return of Nifty 50.
Data Analysis: Weekly return of Britannia Industry Limited-
-0.16 + 0.56 weekly return of Nifty 50.
t Stat= (2.27), N= 48, R Square=0.10, F= 5.14, P-value= 0.02.
Interpretation: The above equation depicts the relationship between weekly returns of Britannia Industry Limited and weekly return of Nifty 50. The (+) sign before the coefficient of Nifty 50 tells that if Nifty rises, Britannia Industry Limited will also rise and vice versa. If Nifty rises one unit, Britannia industry Limited will also rise by 0.56 unit. Figure in the bracket is t Stat for beta and the P-value for which is 0.02 which is less than 0.05. Meaning, beta is statistically significant at 5% level. R Square is 0.10. Meaning, 10% of company return are explained by Nifty 50. The balance 90% maybe due to fundamentals. F is 5.14 and the P-value is 0.02. Meaning, overall model is statistically significant.
Conclusion: The beta is less than 1. Meaning, invest for long term.