Introduction \u2013
\nVadilal Industries Ltd is an Indian ice cream and flavoured milk manufacturer. The company is also one of the largest processed food manufacturers in India with significant exports of frozen vegetables and ready to eat snacks, curries, and breads.
\nVadilal offers a large range of ice creams in the country with multiple flavors and packs, across forms (cones, candies, bars, ice-lollies, small cups, big cups, family packs, and economy packs). In addition to a supermarket presence, Vadilal also has a retail presence through its chain of Happinnezz ice-cream parlour, which are run through a franchisee model. Since Vadilal started by catering to the people of Gujarat, all their products are vegetarian and do not use eggs.
\nVadilal Industries has two ice cream production facilities \u2013 one at Pundhra in Gandhinagar district, Gujarat and the other one at Bareilly in Uttar Pradesh. It has a distribution network of 50,000 retailers, 250 SKUs (stock keeping units), 550 distributors, 32 CNF and 250 vehicles for delivery of goods.
\nObjective
\nTo calculate \u03b2 & find its significance
\nData collection
\nThe data was gathered from a secondary source, the NSE\u2019s official website. Data on the NSE\u2019s daily closing stock price & the Vadilal has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.
\nData Analysis
\nRegression Statistics
\nMultiple R 0.239675
\nR Square 0.057444
\nAdjusted R Square 0.053613
\nStandard Error 78.50437
\nObservations 248<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.057444, which means that 5.74% of weekly returns of Vadilal industries can be explained by Nifty.
\nWe can infer that to the given extent Vadilal does follow the Nifty trend.<\/p>\n
ANOVA
\ndf SS MS F Significance F
\nRegression 1 92397.56854 92397.57 14.99246 0.000138
\nResidual 246 1516082.099 6162.935
\nTotal 247 1608479.667<\/p>\n
Interpretations:
\nH0: Nifty is not influencing the weekly returns of Vadilal
\nH1: Nifty is influencing the weekly returns of Vadilal
\nHere as the F value is 14.99246 which is more than 4, thus we reject the null hypothesis & accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of Vadilal.
\nCoefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
\nIntercept 739.2919 68.1186838 10.853 1.12E-22 605.1217 873.4622 605.1217 873.4622
\nX Variable 1 0.015951 0.004119612 3.87201 0.000138 0.007837 0.024065 0.007837 0.024065<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 0.843596 meaning that 1 unit change in Nifty leads to 0.843596 change in weekly returns of Vadilal. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
\nThe P value is 1.12E-22 which is less than 0.05, thus the model is significant at 95% confidence interval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction \u2013 Vadilal Industries Ltd is an Indian ice cream and flavoured milk manufacturer. The company is also one of the largest processed food manufacturers in India with significant exports of frozen vegetables and ready to eat snacks, curries, and breads. Vadilal offers a large range of ice creams in the country with multiple flavors… Continue reading Relationship between Nifty & Vadilal Industries<\/span><\/a><\/p>\n","protected":false},"author":91979,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[1641],"class_list":["post-16043","post","type-post","status-publish","format-standard","hentry","category-finance","tag-vadilal-industries","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16043","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\/91979"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16043"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16043\/revisions"}],"predecessor-version":[{"id":16115,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16043\/revisions\/16115"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16043"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}