Volume : V, Issue : III, March - 2015

TREND OF CAPITAL STRUCTURE IN METAL AND PHARMASUTICAL INDUSTRY–AN INDIAN CASE

Sanjay Anandilal Hiran, Dr. Mahendra Sojatia

Abstract :

Proportion of debt capital and share capital constitute capital structure of any business organisation. This paper studied the existing pattern or composition of capital structure and debt equity ratio of Metal and Pharma industry which is based on eleven companies engaged in such industry. After comparative analysis followed by ratio analysis it is found and concluded that companies are using both debt and equity financing as a part of its capital structure. The average debt equity ratio in case of Pharma Industry is lower as compared to Metal Industry. The Pharm Industry should pay more attention to debt financing to maximise the value of the share price. Both the industries are advice to maintain a trade–off between debt and equity so as to achieve the objective of optimal capital structure.

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

SANJAY ANANDILAL HIRAN, DR. MAHENDRA SOJATIA TREND OF CAPITAL STRUCTURE IN METAL AND PHARMASUTICALINDUSTRY – AN INDIAN CASE Indian Journal of Applied Research, Vol.5, Issue : 3 March 2015

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