Abstract: Return and risk are two important characteristics of every investment. Investment in the equity is very volatile and investors feel it is a very risky market. The fast moving consumer goods stocks are considered as the safe best because they hardly get influenced by the market movement. But, there are instances fast moving consumer goods stock price also has fallen down even though their financial performance is satisfactory. The present study is an attempt to find out the best buy opportunity in FMCG stocks in Indian stock market. The study aims to identify the most promising FMCG stocks available for long-term investors, an comparative analysis of the selected FMCG stocks and to find the relation between FMCG stock price and FMCG index. The study adopted technical analysis to derive the conclusions. The study mainly depends on secondary data collected from the data base of National stock exchange for the period of 5 years starting from September 2015 to August 2020 (monthly basis). The scope of the study has been limited to the select of 5 FMCG stocks - Britannia, Hindustan Unilever Limited (HUL) and Indian Tobacco Company (ITC), Nestle India and Marico. The study uses descriptive and exploratory research method. The data collected was analysed with the help of return, beta, alpha, standard deviation and variance and CAPM model. The study found that the Nestle India and Britannia stocks have performed well compared to Marico and HUL whereas ITC performing negatively during the study period. It is suggestable for the investors to invest more in the stocks of Nestle India, HUL Ltd, Britannia and Marico as the stocks of these companies are under-priced which is an indication of profitability of stocks.
Keywords: CAPM, FMCG Index, HUL, ITC, Marico, Britannia, Nestle India.
Title: A Comparative Analysis of Selective FMCG Companies in Indian Stock Market Using CAPM
Author: Kunj Balar, Juli Senjaliya, Yash Kothari
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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