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Assignment 1

Britannia Industries is an Indian food company founded in 1892 and headquartered in Kolkata. It is best known for its biscuit products sold under the Britannia and Tiger brands. The company reported a 13.25% increase in revenue and 32.89% increase in net income for fiscal year 2021. Stock price analysis of Britannia Industries from February 22nd to March 16th, 2022 showed moderate correlation and risk level below the market average based on correlation, regression, and covariance methods.

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122 views4 pages

Assignment 1

Britannia Industries is an Indian food company founded in 1892 and headquartered in Kolkata. It is best known for its biscuit products sold under the Britannia and Tiger brands. The company reported a 13.25% increase in revenue and 32.89% increase in net income for fiscal year 2021. Stock price analysis of Britannia Industries from February 22nd to March 16th, 2022 showed moderate correlation and risk level below the market average based on correlation, regression, and covariance methods.

Uploaded by

Janani Priya
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BRITANNIA INDUSTRIES

INVESTMENT MANAGEMENT

DONE BY:
SIVA NANDINI S
19CMH30
INTRODUCTION

Britannia Industries Limited is an Indian company specialized in food industry, part


of the Wadia Group headed by Nusli Wadia. Founded in 1892 and headquartered
in Kolkata, it is one of India's oldest existing companies and best known for its
biscuit products. The company sells its Britannia and Tiger brands
of biscuits, breads and dairy products throughout India and abroad. Beginning with
the circumstances of its takeover by the Wadia Group in the early 1990s, the
company has been mired in several controversies connected to its management.
However, it still has a large market share and it is profitable.

PERFORMANCE IN STOCK MARKET:

Its annual income statement is Britannia Industries Ltd reported revenue of 131.4B
for FY 2021, an increase of 13.25% compared to FY 2020. Net income grew 32.89%
to 18.6B.

Its annual balance sheet is Britannia Industries Ltd reported total assets of 80.1B for
FY 2021, an increase of 2.12% compared to FY 2020.

Its annual cash flow is Britannia Industries Ltd reported cash flow of 18.5B for FY
2021, an increase of 24.69% compared to FY 2020.

Its annual earnings is Britannia Industries Ltd reported Earnings Per Share (EPS) of
77.4 for FY 2021, an increase of 31.52% compared to FY 2020.
FOLLOWING ARE THE MARKET INDEX AND SHARE PRICES OF
BRITANNIA INDUSTRIES OF FEB AND MARCH 2022

NSE BRITANNIA
DATE INDEX (Y) INDUSTRIES Rm X Rm Y X- ͞X Y- ͞Y (X- ͞X)(Y-͞Y) (X- ͞X)^2 X^2 Y^2 XY
(X)
22 feb,2022 17092.2 3489.75
23 feb,2022 17063.25 3511.15 0.61 -0.17 0.91 -0.14 -0.13 0.83 0.38 0.03 -0.10
24 feb,2022 16247.95 3446 -1.86 -4.78 -1.56 -4.75 7.39 2.42 3.44 22.83 8.87
25 feb,2022 16658.4 3422.75 -0.67 2.53 -0.37 2.56 -0.96 0.14 0.46 6.38 -1.70
28 feb,2022 16793.9 3427.45 0.14 0.81 0.44 0.84 0.37 0.19 0.02 0.66 0.11
2 Mar,2022 16605.95 3391.75 -1.04 -1.12 -0.74 -1.09 0.81 0.55 1.08 1.25 1.17
3 Mar,2022 16498.05 3366.4 -0.75 -0.65 -0.45 -0.62 0.28 0.20 0.56 0.42 0.49
4 Mar,2022 16245.35 3371.35 0.15 -1.53 0.45 -1.50 -0.67 0.20 0.02 2.35 -0.23
7 Mar,2022 15863.15 3153.45 -6.46 -2.35 -6.16 -2.32 14.32 37.99 41.77 5.54 15.21
8 Mar,2022 16013.45 3113.75 -1.26 0.95 -0.96 0.98 -0.94 0.92 1.58 0.90 -1.19
9 Mar,2022 16345.35 3123.85 0.32 2.07 0.62 2.10 1.31 0.39 0.11 4.30 0.67
10 Mar,2022 16594.9 3222.95 3.17 1.53 3.47 1.56 5.41 12.06 10.06 2.33 4.84
11 Mar,2022 16630.45 3199.9 -0.72 0.21 -0.42 0.24 -0.10 0.17 0.51 0.05 -0.15
14 Mar,2022 16871.3 3185.85 -0.44 1.45 -0.14 1.48 -0.21 0.02 0.19 2.10 -0.64
15 Mar,2022 16663 3222.85 1.16 -1.23 1.46 -1.20 -1.76 2.14 1.35 1.52 -1.43
16 Mar,2022 16975.35 3313.65 2.82 1.87 3.12 1.90 5.94 9.72 7.94 3.51 5.28
-4.82 -0.41 31.05 67.93 69.48 54.16 31.18
✓ ͞͞͞X = 0.30
✓ ͞͞͞Y = 0.03
✓ rim = 0.51
✓ σm = 2.06
✓ σy = 1.84
✓ Cov(RM,RI) = 1.94
✓ σ2M = 4.25

CORRELATION METHOD
β= 0.45
REGRESSION METHOD
β = 0.45
CO-VARIANCE METHOD
β = 0.45

INTERPRETATION

THE ABOVE RESULTS (β) SHOW THAT THE COMPANY IS BELOW THE
AVERAGE RISK

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