{"id":18321,"date":"2023-08-22T07:44:21","date_gmt":"2023-08-22T02:14:21","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=18321"},"modified":"2023-08-22T07:44:21","modified_gmt":"2023-08-22T02:14:21","slug":"relationship-of-jubilant-foodworks-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=18321","title":{"rendered":"Relationship of Jubilant Foodworks with Nifty 50"},"content":{"rendered":"

Title: – Relationship of Jubilant Foodworks with Nifty 50<\/strong><\/p>\n

Author: – <\/strong>Jayesh Devidas Pardeshi (MMS First Year, Roll no. 0222106)<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 Kohinoor Business School, Kurla.<\/p>\n

Introduction: – <\/strong>Jubilant Foodworks Limited is India’s largest food company and is part of the Jubilant Bhartia Group. Founded in 1995, the company owns the exclusive master franchise rights from Domino’s Pizza Inc. to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. It has a solid and extensive network of 1,838 Domino’s restaurants in 394 cities in India. Jubilant Foodworks also has exclusive rights to develop and operate Dunkin’ restaurants in India and Popeyes restaurants in India, Bangladesh, Nepal and Bhutan. The company currently operates 21 Dunkin’ restaurants in six Indian cities and 17 Popeyes restaurants in four cities. In 2019, Jubilant Foodworks launched its first restaurant brand \u201cHong\u2019s Kitchen\u201d in the Chinese cuisine segment, which now has 15 restaurants in three cities.<\/p>\n

Objective: – <\/strong>To Calculate the Beta of Jubilant Foodworks and find out its significance.<\/p>\n

Views and Reviews: –<\/strong><\/p>\n

Avinash Kant Kumar, President of Jubilant Foodworks Limited<\/strong>, commented on the occasion “We are delighted to introduce \u2018Taste Tibet\u2019 Food Festival to our guests at Hong\u2019s Kitchen restaurants. This offers them a chance to explore the captivating flavors of Tibet. Our chefs have been diligent in ensuring each dish truly represents the essence of Tibet cuisine. This festival embodies the rich culinary diversity that Indo-Chinese cuisine has to offer, and we eagerly anticipate sharing this experience with our patrons.”<\/p>\n

(Dutta, 2023)<\/p>\n

\u00a0<\/p>\n

Sandeep Anand, Executive Vice President & Chief Marketing Officer<\/strong> at Domino\u2019s India, expressed his enthusiasm about the new offer, stating, “We are delighted to introduce the Freedom Feast Offer in conjunction with the 76th Independence Day celebrations. This occasion signifies freedom, unity, and shared moments. Through this exclusive offer, we aim to elevate our customers’ festivities and provide them with an opportunity to relish exceptional food experiences with their loved ones.”\u00a0(ANI, 2023)<\/p>\n

\u00a0<\/p>\n

Data Collections: – <\/strong>Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Jubilant Foodworks (i.e. Y) were calculated.<\/p>\n

\u00a0<\/p>\n

Data Analysis: –<\/strong> Equation \u201cY=-0.1348-0.5586(X)\u201d<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 (tstat <\/sub>= 1.7987)<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 <\/strong>n = 50, R2 <\/sup>= 0.0631, F = 3.2352<\/p>\n

The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Jubilant Foodworks (y) the negative sign means a negative relationship meaning if \u201cx\u201d rises \u201cy\u201d falls and vice versa. If \u201cx\u201d rises by 1 unit, \u201cy\u201d falls by 0.5586, \u201cn\u201d means there are 50 observations, and figures in brackets are tstat<\/sub> for \u201cb\u201d, so \u201cb\u201d is not as Calculated tstat<\/sub> for b i.e. 1.7987 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2<\/sup> is 0.0631 means 6.31% of y is explained by x. As the calculated value of F =3.2352 is less than the tabulated F (F 0.05,1DF,49DF) = 4.038, the overall model is not statistically significant at the 5% level.<\/p>\n

So overall the model is statistically not significant at the 5% level.<\/p>\n

Conclusion:<\/strong><\/p>\n

If b<1, Jubilant Foodworks share is good for long term investment.<\/p>\n

\u00a0<\/p>\n

References<\/h1>\n

ANI. (2023). NewsVoir. ANI<\/em>, 2. Retrieved from https:\/\/www.aninews.in\/news\/business\/business\/dominos-makes-independence-day-extra-delightful-launches-freedom-feast-offer20230811114412\/<\/p>\n

Dutta, S. (2023). Hong’s Kitchen Introduces a Flavourful Journey with \u2018Taste Tibet\u2019 food. Hong’s Kitchen<\/em>, 2. Retrieved from https:\/\/www.jubilantfoodworks.com\/Uploads\/Files\/748jf-Hong-s-Kitchen.pdf<\/p>\n

\u00a0<\/p>\n

\u00a0<\/sup><\/p>\n","protected":false},"excerpt":{"rendered":"

In my paper titled “Relationship of Jubilant Foodworks with Nifty 50” I have investigated the relationship between the closing prices of Jubilant Foodworks and Nifty 50. I have used the data from 1st June 2022 to 31st July 2023 and found that there is a negative relationship between the two prices. This means that when the Nifty 50 rises, the price of Jubilant Foodworks tends to fall and vice versa. However, the relationship is not statistically significant, which means that it cannot be said with certainty that there is a causal relationship between the two prices.<\/p>\n

I believe the negative relationship between the two prices is because Jubilant Foodworks is a cyclical stock. This means that its price tends to move in the same direction as the overall economy. When the economy is doing well, people tend to spend more money on food, which leads to higher prices for Jubilant Foodworks. However, when the economy is doing poorly, people tend to spend less money on food, resulting in lower prices for Jubilant Foodworks.<\/p>\n

The fact that this relationship is not statistically significant suggests that there are other factors influencing the price of Jubilant Foodworks. These factors may include company performance, new product introductions or changes in consumer preferences.<\/p>\n

Overall, my study suggests that there is a negative relationship between the closing prices of Jubilant Foodworks and the Nifty 50. However, the relationship is not statistically significant, which means that it is not possible to say with certainty that there is a causal relationship between the two prices. More research is needed to understand the factors that influence the price of Jubilant Foodworks.<\/p>\n","protected":false},"author":138856,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-18321","post","type-post","status-publish","format-standard","hentry","category-investing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18321","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\/138856"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18321"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18321\/revisions"}],"predecessor-version":[{"id":18322,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18321\/revisions\/18322"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18321"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}