{"id":23020,"date":"2025-12-19T02:17:10","date_gmt":"2025-12-18T20:47:10","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23020"},"modified":"2025-12-19T02:17:10","modified_gmt":"2025-12-18T20:47:10","slug":"relationship-of-nifty-50-with-godrej-industries-limited-author-gaurang-fakare","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23020","title":{"rendered":"Relationship of Nifty 50 with Godrej Industries Limited Author: Gaurang Fakare"},"content":{"rendered":"<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">1. <u>Introduction of the Company<\/u><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Godrej Industries Limited (GIL)<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> is a flagship company of the <b>Godrej Group<\/b>, one of India&#8217;s oldest and most trusted conglomerates, founded in 1897. Godrej Industries serves as a holding company for the group\u2019s key businesses. Its operations are highly diversified across several sectors:<\/span><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Chemicals:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> A leader in oleo-chemicals and surfactants.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Agribusiness (Godrej Agrovet):<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Involved in animal feed, palm oil, and crop protection.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Real Estate (Godrej Properties):<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> One of India&#8217;s premier property developers.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Consumer Products (Godrej Consumer Products):<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> A major player in the FMCG sector (soaps, hair care, etc.).<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Financial Services (Godrej Capital):<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Providing housing finance and credit solutions.<\/span><\/li>\n<\/ul>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">The company has a significant global footprint and is known for its commitment to sustainability and innovation.<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">2. <u>Objective<\/u><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">The primary objective of this analysis is to evaluate the risk and return profile of Godrej Industries Limited by:<\/span><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">Comparing its weekly stock returns with the benchmark <b>NIFTY 50<\/b> index.<\/span><\/li>\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">Calculating the <b>Beta <\/b>of the stock to understand its sensitivity to market movements.<b><\/b><\/span><\/li>\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">Assessing the volatility and average performance of the stock over the specified 12-month period.<\/span><\/li>\n<\/ul>\n<p><b><span style=\"font-size: 14.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">\u00a0<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">3. <u>Literature Review<\/u><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">During the 2024-2025 period, the Indian equity market (NIFTY 50) faced various macroeconomic challenges, including inflationary pressures and global geopolitical tensions. However, sectors like Real Estate and Agribusiness remained resilient.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">Godrej Industries underwent a significant family-led restructuring in 2024, aiming for a simpler corporate structure. Financial reports for FY 2024-25 highlighted a robust growth in consolidated revenues, driven largely by the stellar performance of Godrej Properties and the expansion of Godrej Agrovet&#8217;s margins. Analysts noted that while the stock exhibited high individual volatility, its diversification provided a unique risk-return trade-off compared to pure FMCG or chemical plays.<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">\u00a0<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">4. <u>Data Collection<\/u><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">The data was collected from the provided historical equity quote file covering <b>December 1, 2024, to November 30, 2025<\/b>.<\/span><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Stock Data:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Weekly closing prices and percentage returns for <b>Godrej Industries (GODREJIND)<\/b>.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Market Data:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Weekly closing values and returns for the <b>NIFTY 50<\/b> index.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Sample Size:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> 48-50 weekly observations.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Preprocessing:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Prices were cleaned of currency formatting, and dates were aligned to ensure synchronized returns.<\/span><\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">\u00a0<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">5. <u>Data Analysis<\/u><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">The statistical analysis of the returns data yielded the following key metrics:<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">A. Statistical Summary<\/span><\/b><\/p>\n<table class=\"MsoNormalTable\" border=\"0\" cellspacing=\"3\" cellpadding=\"0\">\n<thead>\n<tr>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Metric<\/span><\/b><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Godrej Industries<\/span><\/b><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">NIFTY 50<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Mean Weekly Return<\/span><\/b><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">0.294%<\/span><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">-0.108%<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Standard Deviation (Risk)<\/span><\/b><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">7.056%<\/span><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">1.880%<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Minimum Weekly Return<\/span><\/b><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">-14.52%<\/span><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">-2.04%<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Maximum Weekly Return<\/span><\/b><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">7.64%<\/span><\/p>\n<\/td>\n<td style=\"border: solid windowtext 1.0pt;padding: 6.0pt 9.0pt 6.0pt 9.0pt\">\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">2.73%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">B. <u>Regression Analysis<\/u> (Beta Calculation<\/span><\/b><b><span style=\"font-size: 12.0pt;line-height: 107%\">)<\/span><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Beta:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> <b>0.789<\/b><\/span>\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">A Beta of 0.789 indicates that the stock is <b>defensive<\/b>; it is less sensitive to market movements. For every 1% move in the NIFTY 50, Godrej Industries tends to move by 0.79%.<\/span><\/li>\n<\/ul>\n<\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Correlation:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> <b>0.210<\/b><\/span>\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">The low correlation suggests that a large portion of the stock&#8217;s price movement is driven by company-specific (idiosyncratic) factors rather than broad market trends.<\/span><\/li>\n<\/ul>\n<\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Coefficient of Determination (R<sup>2<\/sup>):<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> <b>0.044 (4.4%)<\/b><\/span>\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">Only 4.4% of the variance in Godrej Industries&#8217; returns is explained by the NIFTY 50.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">C. <u>Trends<\/u><\/span><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Volatility:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> The stock is significantly more volatile (7.06%) than the index (1.88%). This high volatility is likely due to the cyclical nature of its chemical and real estate subsidiaries.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Performance:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Despite the market showing a slight negative average weekly return during this specific window, Godrej managed a positive average return of 0.29%.<\/span><\/li>\n<\/ul>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">6. <u>Conclusion<\/u><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">The analysis reveals that <b>Godrej Industries Limited<\/b> acted as a relatively independent performer during the 2024-2025 period. While it has a lower Beta (0.789), suggesting it is less prone to market-wide shocks, its high standard deviation indicates substantial unsystematic risk. This makes the stock more suitable for investors who have high risk-tolerance or those looking for a diversifier that does not strictly follow the NIFTY 50&#8217;s trajectory. The positive average return amidst a flat-to-negative market trend reflects the strong underlying performance of its business segments.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 12.0pt;line-height: 107%\">\u00a0<\/span><\/p>\n<p><b><span style=\"font-size: 14.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">\u00a0<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">7. <u>References<\/u><\/span><\/b><\/p>\n<ol style=\"margin-top: 0cm\" start=\"1\" type=\"1\">\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Godrej Industries Official Website:<\/span><\/b> <a href=\"https:\/\/www.godrejindustries.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 12.0pt;line-height: 107%\">www.godrejindustries.com<\/span><\/a><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">National Stock Exchange (NSE) India:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Historical Data for GODREJIND and NIFTY 50.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Equity master:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Annual Report Analysis for Godrej Industries (2024-25).<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%\">Investopedia:<\/span><\/b><span style=\"font-size: 12.0pt;line-height: 107%\"> Financial definitions for Beta and Regression Analysis.<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>1. Introduction of the Company Godrej Industries Limited (GIL) is a flagship company of the Godrej Group, one of India&#8217;s oldest and most trusted conglomerates, founded in 1897. Godrej Industries serves as a holding company for the group\u2019s key businesses. Its operations are highly diversified across several sectors: Chemicals: A leader in oleo-chemicals and surfactants.&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=23020\">Continue reading <span class=\"screen-reader-text\">Relationship of Nifty 50 with Godrej Industries Limited Author: Gaurang Fakare<\/span><\/a><\/p>\n","protected":false},"author":139884,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23020","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\/23020","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\/139884"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23020"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23020\/revisions"}],"predecessor-version":[{"id":23021,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23020\/revisions\/23021"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23020"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}