Fundamental analysis is an approach used to determine the 'correct price' or intrinsic value of a security. The objective is to identify underpriced and overpriced securities in the marketplace, thereby aiding in sound investment decisions such as buying or selling. A security is considered underpriced if its current market price is below its intrinsic value, and overpriced if the market price exceeds this value.
This method evaluates a security by examining various economic, financial, and other qualitative and quantitative factors, including company-specific variables. The analysis typically follows the Top-Down Approach, also known as the E-I-C (Economy-Industry-Company) framework.
Due to growing demand, technical developments, and supportive government regulations, the Indian vehicle industry continues to expand and plays a significant role in economic development. This study looks at the financial performance and Nifty 50 rating of five significant automakers: Eicher Motors, Bajaj Auto, Mahindra & Mahindra, Tata Motors, and Maruti Suzuki.
This topic uses an exploratory research design that is based in secondary data. This study will take into account data from a chosen group of companies listed on the National Stock Exchange for the period of March 1, 2020, through March 31, 2024. The annual reports served as the basis for the descriptive research. The balance sheet, profit and loss account, and cash flow statement of the business from 2020-2024 are used to do the ratio analysis.This study expands our knowledge of the ways in which basic analysis could guide smart financial decisions in one of India's most significant industries.
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