{"id":22775,"date":"2025-03-25T20:29:55","date_gmt":"2025-03-25T14:59:55","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=22775"},"modified":"2025-03-25T20:29:55","modified_gmt":"2025-03-25T14:59:55","slug":"relation-of-marico-ltd-with-nifty50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22775","title":{"rendered":"Relation of Marico Ltd with Nifty50"},"content":{"rendered":"

Title: Relation of Marico Ltd with Nifty50<\/span><\/b><\/p>\n

Author: Manvi koli<\/span><\/p>\n

Introduction:<\/span><\/b>
Marico Limited is an Indian multinational Consumer goods Company[5] providing consumer products and services in the areas of health, beauty and wellness. With its headquarters in Mumbai, Marico is present in over 25 countries across Asia and Africa. It owns brands in categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care.As of 2019\u20132020, the company generated a turnover of \u20b97,315 crores. Marico has 8 factories in India located at Puducherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib. With a strong focus on innovation, sustainability, and customer-centric solutions, Marico has positioned itself as a pioneer in the fast-moving consumer goods (FMCG) industry. The company has consistently adapted to market trends, introducing premium and value-driven products that cater to the evolving preferences of consumers.<\/span><\/p>\n

Financially, Marico has maintained strong growth and profitability, backed by a low debt-to-equity ratio, high return on capital employed (RoCE), and a robust distribution network. The company has also prioritized digital transformation and sustainability initiatives, aligning its operations with global environmental, social, and governance (ESG) standards.<\/span><\/p>\n

Objective:<\/span><\/b><\/p>\n

To find out the Beta of Marico and <\/span>\u00a0<\/span>it\u2019s significance<\/span><\/p>\n

Literature Review:<\/span><\/b><\/p>\n

Marico \u2013 Competing with an Innovative Business Model <\/span><\/b><\/p>\n

\u00a0<\/span>This case study explores how Marico Limited, under the leadership of Harsh Mariwala, developed an innovative business model to compete against multinational corporations in various markets. The study highlights Marico\u2019s strategic emphasis on innovation to achieve profitability and sustainable competitive advantage in the fast-moving consumer goods (FMCG) sector.<\/span><\/p>\n

\u00a0<\/span>\u201c<\/span>A Comparative Study on Financial Analysis of Britannia Industries and Marico Limited\u201d by Yasodha, Dr. M.; Aishvarrya, R.; Anuraghavi, G.; Krithika, R.<\/b><\/p>\n

\u00a0<\/span><\/b>This study provides a comparative analysis of Britannia Industries and Marico Limited by evaluating and analyzing the companies\u2019 financial statements, strengths, and weaknesses to inform economic decisions. The research focuses on financial metrics such as profitability, liquidity, and efficiency ratios to assess the performance of both companies in the FMCG sector.<\/span><\/p>\n

\u00a0<\/span><\/b>Data Collection:<\/span><\/b><\/p>\n

Marico and Nifty50 data were downloaded for the period 1 January 2024 to 31 December 2024. The dataset was manipulated to extract the Friday closing prices, where Nifty50 was taken as the independent variable (X) and Marico\u2019s share price as the dependent variable (Y). A regression analysis was conducted with Marico\u2019s share price regressed on Nifty50.<\/span><\/p>\n

Data Analysis:
<\/span><\/b>Equation: Marico = 0.0024 + 0.0043 Nifty50<\/span><\/p>\n

Interpretation: The regression equation describes the relationship between Nifty50 (X) and Marico’s share price (Y), indicating that Marico’s share price is the dependent variable, while Nifty50 is the independent variable. The positive coefficient of 0.0043 suggests that for every unit increase in Nifty50, Marico’s share price is expected to increase by 0.0043 units.<\/span><\/p>\n

With 45 observations (), the<\/span>\u00a0 <\/span>value is 0.0321, implying that approximately 3.21% of the variation in Marico’s share price can be explained by changes in Nifty50. The F-value for the model is 1.425, and the p-value for the slope is 0.2389, which is greater than the conventional threshold of 0.05. This indicates that the relationship between Nifty50 and Marico’s share price is not statistically significant at the 5% level. Consequently, this model does not provide strong evidence to suggest a significant linear relationship between Nifty50 and Marico’s share price.<\/span><\/p>\n

\u00a0<\/span><\/b>Conclusion:<\/span><\/b><\/p>\n

Marico’s beta of 0.043 indicates that it is significantly less volatile than the market, making it a relatively stable investment. This suggests that Marico’s stock price is less sensitive to market fluctuations, making it better suited for long-term investors who prefer lower-risk investments over short-term speculative trading.<\/span><\/p>\n

Reference:<\/span><\/b>
Marico \u2013 Competing with an Innovative Business Model. Emerald Emerging Markets Case Studies. Retrieved from <\/span>https:\/\/www.sciencegate.app\/document\/10.1108\/eemcs-05-2017-0093<\/span><\/a><\/span><\/p>\n

Yasodha, M., Aishvarrya, R., Anuraghavi, G., & Krithika, R. (2023). A Comparative Study on Financial Analysis of Britannia Industries and Marico Limited. OP Jindal University Business Review <\/span>https:\/\/www.opju.ac.in\/opjubr\/documents\/8.pdf<\/span><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relation of Marico Ltd with Nifty50 Author: Manvi koli Introduction:Marico Limited is an Indian multinational Consumer goods Company[5] providing consumer products and services in the areas of health, beauty and wellness. With its headquarters in Mumbai, Marico is present in over 25 countries across Asia and Africa. It owns brands in categories of hair… Continue reading Relation of Marico Ltd with Nifty50<\/span><\/a><\/p>\n","protected":false},"author":139822,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22775","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22775","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\/139822"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22775"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22775\/revisions"}],"predecessor-version":[{"id":22776,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22775\/revisions\/22776"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22775"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}