TITLE: Relationship of Nifty and Jubilant food works
\nAUTHOR: Jayesh Sharma \t\t\tSAP ID: 80012100958
\nIntroduction
\nJubilant FoodWorks Limited is an Indian food service company based in Noida, Uttar Pradesh which holds the master franchise for Domino’s Pizza in India, Nepal, Sri Lanka and Bangladesh, for Popeyes in India, Bangladesh, Nepal and Bhutan, and also for Dunkin’ Donuts in India.[3] The company also operates two home-grown restaurant brands called Ekdum! and Hong’s Kitchen. Jubilant FoodWorks is a part of the Jubilant Bhartia Group, owned by Shyam Sunder Bhartia (husband of Shobhana Bhartia) and Hari Bhartia
\nOBJECTIVE: To calculate Beta Value of JUBLFOOD and find its significance.
\nVIEWS AND REVIEWS: according to Vinnii Motiwala News Analyst at ET Now Jubilant Foodworks reported a subdued quarter with the Like-for-Like growth at 7.5% which was lower than expected, affected by lower sales in the past 12-15 days of December due to lower operational hours. The Company has shifted from SSSg to LFL because a significant number of delivery orders (over 60%) are now fulfilled within 20 mins. Store additions are an important part of ensuring faster deliveries. Thus, the management stated that going forward, it would share LFL only, citing that LFL is a better reflection of real underlying growth and not SSSG, as the store split impact would be high for the near term. Near term Impact on Mother store revenue. The Company is likely to open 200 stores in FY22. Also, the price increases taken in Dec\u201921 should offset the inflation witnessed in Jan\u201922 as well. ICICI Securities maintains add rating with a target price of Rs 3600. Vinnii Motiwala
\nDATA COLLECTION: The data of NIFTY and JUBLFOOD was collected through NSE Website and was downloaded from 1-March-2021 to 28-February-2022 in an excel sheet. The closing prices were found out. The data was filtered on weekly basis and then weekly returns of both NIFTY and JUBLFOOD was calculated. The company returns have been regressed on nifty\u2019s returns.
\nDATA ANALYSIS:
\nPredicted Y = -0.00193+ 0.813002X
\nN=47, R Square= 0.107721
\n, F= 5.311934
\nTstat(beta)=2.304763
\n Tstat (0.05,45)= 2.0141<\/p>\n
The above regression equation tells us the relationship between X and Y. Where X is NIFTY\u2019s weekly returns and Y is JUBLFOOD\u2019s weekly returns.
\nThe positive sign of Beta tells us that there is a positive relationship between NIFTY and JUBLFOOD\u2019s weekly returns.
\nFrom the equation, it can be seen that if X rises by 1 unit, Y will rise by 0.813002
\nUnits.
\nT calculated is more that T tabulated which means, \u03b2 is statistically significant at 5% confidence level.
\nR^2 is 0.107721 which means 10.77% of Y (JUBLFOOD) is explained by X. And the balance is explained by error.
\nF is 5.311934 which is more than table value which means model is statistically significant at 5% level.<\/p>\n
CONCLUSION:
\n\u03b2 is statistically significant in case of NIFTY and JUBLFOOD. Also, it can be concluded that JUBLFOOD is a low beta share. Since it is less than 1.<\/p>\n","protected":false},"excerpt":{"rendered":"
TITLE: Relationship of Nifty and Jubilant food works AUTHOR: Jayesh Sharma SAP ID: 80012100958 Introduction Jubilant FoodWorks Limited is an Indian food service company based in Noida, Uttar Pradesh which holds the master franchise for Domino’s Pizza in India, Nepal, Sri Lanka and Bangladesh, for Popeyes in India, Bangladesh, Nepal and Bhutan, and also for… Continue reading Relationship of Nifty and Jubilant food works AUTHOR: Jayesh Sharma SAP ID: 80012100958<\/span><\/a><\/p>\n","protected":false},"author":91941,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,38],"tags":[],"class_list":["post-15972","post","type-post","status-publish","format-standard","hentry","category-economics","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/91941"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15972"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15972\/revisions"}],"predecessor-version":[{"id":16178,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15972\/revisions\/16178"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15972"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}