Research Methodology
Report Writing
Title: – Relationship of Nifty with Nestle India Ltd
AUTHOR: – Nilakshi Zade
ROLL NO: – 021331025629
BATCH: – Operations and Supply Chain Management
CONTENTS
|
SR. No |
Title |
Page No |
|
1 |
Introduction |
2 |
|
2 |
Objective |
3 |
|
3 |
Data Collection |
3 |
|
4 |
Literature Review |
3 |
|
5 |
Data Analysis |
3 |
|
6 |
Conclusion |
4 |
|
7 |
References |
4 |
1. INTRODUCTION
Nestlé India Ltd. is a leading Indian subsidiary of Nestlé S.A., Switzerland, and is one of the largest food and beverage companies in India.
The company operates in various segments such as milk products & nutrition, prepared dishes & cooking aids, chocolates & confectionery, and beverages.
Nestlé India Ltd. is known for its strong brand portfolio including Maggi, Nescafé, KitKat, Milkmaid, and Cerelac, and has a significant presence across the Indian market.
This study uses regression analysis to examine the relationship between the returns of Nestlé India Ltd. and an independent variable in order to estimate its beta (β) and understand its market sensitivity.
2.OBJECTIVE
To calculate the beta (β) of Nestlé India Ltd. and observe its statistical significance.
3. DATA COLLECTION
· The data consists of observations of the dependent variable (returns of Nestlé India Ltd.) and the independent variable (X)
· A total of 47 observations were used for the analysis.
· The regression analysis was carried out using MS Excel.
4. LITERATURE REVIEW
· Sharma and Gupta (2018) analyzed the financial performance of Nestlé India Ltd. and found that the company has maintained strong profitability
and stable growth, supported by strong brand equity and efficient cost management.
5. DATA ANALYSIS
• Regression Equation:
y = 3.509304x + 24293.33
where:
y = Return of Nestlé India Ltd.
x = Independent variable return
This equation indicates that if X increases by 1 unit, the return of Nestlé India Ltd. increases by 3.5093 units.
· Number of Observations = 47
· t-stat for β = o.372828
· p-value = 0.711026 èThis indicates that since p-value >0.05, β is statistically not significant at 1% level.
· R2 = 0.003079 è This indicates that only about 0.31% of the variation in the returns of Nestlé India Ltd. is explained by X, while 99.69% is due to other factors not included in the model
· F =0.139001
· Significance F = 0.711026·
Since Significance F > 0.05, the overall regression model is not statistically significant.
6. CONCLUSION
Here, β = 3.509304. Although β is positive, indicating a positive relationship between X and the returns of Nestlé India Ltd., the p-value (0.711026) shows that this relationship is not statistically significant. Therefore, the independent variable does not significantly explain the returns of Nestlé India Ltd., and the model is not reliable for prediction or investment decisions.
7. REFERENCES
National Stock Exchange of India (NSE). (2025). Historical price data of Nestlé India Ltd. Retrieved from www.nseindia.com