Title: Relationship of JUBLFOOD Works with Nifty 50
Author: Janhavi Kale
Introduction: JUBLFOOD Works is India’s largest food service company, operating popular brands like Domino’s Pizza and Dunkin’ Donuts. It has a strong presence with over 1,800 outlets across various cities in India, focusing on delivering quick-service meals. The total number of equity shares is 66,07,93,103 with a face value of ₹2 each. The symbol of the JUBLFOOD Works share is JUBLFOOD.
Objective: To find out Beta of JUBLFOOD Works and its significance.
Data Collection: Data of JUBLFOOD Works and Nifty 50 was downloaded from 01/05/23 to 30/04/24 taken from NSE, then data is manipulated to get Friday closing prices.
Weekly return of Nifty 50 is taken as X and weekly return of JUBLFOOD Work is taken as Y, then weekly returns of both were calculated, Weekly return of JUBLFOOD Work was regressed on weekly returns of Nifty 50.
Data Analysis:
Weekly return of JUBLFOOD Work = 0.39 + (-0.45) weekly return of Nifty 50
(-1.22)
N = 48, R square = 0.03, F = 1.51, P value = 0.22
Interpretation: The above equation depicts the relationship between weekly returns of JUBLFOOD Work and weekly returns of Nifty 50.
The plus sign before the coefficient of Nifty 50 tells that if Nifty rises your competition will also rise & vice versa, If Nifty rises by one unit JUBLFOOD Work will rise by 0.90 unit, figure in the bracket is T stat for beta.
The p value for which 0.22 which is more than 0.05 meaning beta is statistically not significant at 5% level.
R square is 0.03 meaning 3% of company’s return are explained by Nifty 50 the balance 33% may be due to fundamentals.
F is 1.51 & P value is 0.22 meaning overall model is statistically insignificant.
Conclusion: As beta is -0.45 meaning it is Negative, hence Avoid this company.