Author: Deven Dinkar Kamble (75)
1.Introduction:
Dabur India Limited is a leading company in the FMCG industry in India and one of the leading Ayurvedic and Natural Health Care companies in the world. It was founded in 1884 by Dr. S.K. Burman and is headquartered in Ghaziabad, Uttar Pradesh. Dabur has a presence in various consumer product segments like hair care, oral care, health care, skin care, and home and personal care foods. Its philosophy is to be “Dedicated to the Health and Wellbeing of Every Household” by providing quality products in the natural health care segment.
2. Objective:
To calculate Beta and observe its significance
3. Literature Review:
i) The Study of Consumer Buying Behaviour
According to a study conducted by Kumar et al. (2019), the marketing strategy of Dabur revolves around its core philosophy of “Nature’s Way to a Healthier Life” with a focus on creating brand awareness among customers about the benefits of Ayurvedic products. The study indicates that Dabur’s emphasis on the use of natural ingredients, along with its strong distribution network, has helped the company create a strong brand image as a reliable brand in the Indian market.
ii) Marketing Strategies and Distribution Channels of FMCG Giants
According to the literature on rural marketing strategies, Dabur has a long history of commitment to the rural market because it has understood the rural market’s potential from a very early stage. Dabur has been able to overcome the challenges of accessibility and affordability of its products in rural areas through its rich heritage in shaping the buying behaviour of the consumers in rural areas.
4. Data Collection:
Data on Nifty 50 and Dabur India Limited was analysed over a period of 01/01/2025 to 31/12/2025. The data was processed by using the closing prices on Fridays to calculate the returns on the stock and volatility of the stock relative to the market.
5. Data Analysis:
|
y=-0.26+0.86 |
|||||||||||
|
N |
48 |
|
|||||||||
|
R square |
0.229 |
|
|||||||||
|
F |
13.65 |
|
|||||||||
|
P-value |
0.0005841E-0.4783 |
|
|||||||||
|
t stat |
3.69 |
|
|||||||||
|
B |
0.86 |
|
|||||||||
The regression analysis for Dabur India Limited shows the relationship between Market Return (X) and Stock’s Return (Y). The R Square value is 0.2288, which means 22.88% of the variance in Dabur’s return is due to Market Return, and 87.58% is the error for variables not included in the model. The F value is 13.65, and the P-value is 0.0140, which is less than 0.05, so it is statistically significant at 5%. The P-value of the coefficient is 0.014, which is less than 0.05, which means the market return has a significant impact on the company’s return. The Intercept is -0.2612, which means that if market return is 0, then the return on the company is -0.2612%. The Coefficient of market return (Beta) is 0.8569, which means for every 1 unit increase in market return, the company’s return increases by only 0.8569 units, which means it is a defensive stock. The number of observations is 48.
6. Conclusion:
Since, the Beta for this company is 0.86, this stock is strictly a long-term play to be traded only when we expect the Nifty to rise.
7. Reference:
Verma, S. (2018). A Project Report on the Study of Consumer Buying Behaviour with Reference to Dabur India Ltd. in the Ayurvedic Healthcare Segment. Department of Management Studies, University of Delhi. https://www.scribd.com/do++++++cument/330359140/Consumer-Behaviour-Towards-Dabur-Chyawanprash
Nair, R. K. (2021). Marketing Strategies and Distribution Channels of FMCG Giants: A Case Study of Dabur India Limited. School of Management, Kochi. https://www.scribd.com/document/525195658/Channel-Strategy-and-Distribution-Network