Title: Relationship of Dabur India Ltd. with Nifty 50.
Authors: D Uma Maheshwar
Introduction: Dabur India Ltd. is a leading Indian consumer goods company specializing in Ayurvedic and natural health products, including personal care, health supplements, and food products. From April 1, 2023, to March 31, 2024, its share performance experienced significant volatility, with impressive rises driven by strong earnings and favourable regulations followed by corrections. Given this unpredictability, it may be wise to avoid investing in Dabur India Ltd. if you seek stability and consistent returns.
Objective: To find out the Beta of Dabur India Ltd. and its significance.
Data collection: Data for Nifty 50 and Dabur India Ltd. was downloaded from NSE site from the period 01-04-2023 to 31-03-2024. The Data was manipulated to get Friday closing price and weekly returns were calculated by using formula (Yt-1 – Y t) Yt * 100. Weekly returns of Dabur India Ltd. were regressed on weekly return of Nifty 50.
Data analysis:
Weekly returns of Dabur India Ltd. = 0.05 + weekly returns of Nifty = 0.01
(0.072)
N= 46, R2= 0.0001, F= 0.0052, P value= 0.9429
The above equation shows the relationship between Nifty 50 and Dabur India Ltd. The positive sign before 0.018 means if Nifty 50 rises Dabur India Ltd. will also rises and vice versa. The coefficient of Nifty 50 has tstat =2.112 and P value of which is 0.04. It is less than 0.5 meaning Nifty 50 is statistically significant to increase the prices of Dabur India Ltd. R2 = 0.092 meaning 0.01% of Dabur India Ltd. prices are explained by Nifty 50, 99.9% depends upon other factors like fundamentals. F = 4.46 and the P-value for this is 0.04 meaning it is less than 0.05 means overall model is statistically significant.
Conclusion: As Beta value 0.55 is less than 1 in positive relationship, it is advisable invest long term in this stock.
