A Comprehensive Financial Analysis and Business Valuation of Selected Companies: Insights and Trends

A Comprehensive Financial Analysis and Business Valuation of Selected Companies: Insights and Trends

1Shrikant Jaiswal, 2Subhramsis Das,3 Seema Kumari

Mittal School of Business

ABSTRACT

This research undertakes a comprehensive financial analysis and business valuation of three prominent companies within the Indian automotive sector: Bajaj Auto, Hero MotoCorp, and Tata Motors. Through the application of ratio analysis, trend analysis, and Altman’s Z-Score evaluation, the study aims to provide a comparative assessment of their financial health, strategic positioning, and growth potential. The analysis utilizes financial data spanning five years to examine critical performance indicators, including profitability, liquidity, solvency, and operational efficiency. Key financial ratios such as gross profit margin, net profit margin, return on equity (ROE), current ratio, and debt-to-equity ratio are employed to identify underlying financial trends. Altman’s Z-Score is incorporated as a predictive measure of financial distress. The study reveals distinct financial profiles among the companies, reflecting their strategic choices and the dynamic nature of the automotive industry. Bajaj Auto demonstrates strength in profitability and export performance, while Hero MotoCorp focuses on the domestic market, and Tata Motors navigates a diverse portfolio with varying success. The findings offer valuable insights for investors, corporate strategists, and policymakers, highlighting the importance of financial resilience and strategic adaptation in a competitive environment. The research also emphasizes the role of data visualization tools in enhancing the understanding of complex financial data.