Analysing the effect of different financial ratios on the performance of the Indian Pharmaceutical Industry

Nishkam Prabodh; Yoshita Agrawal

Volume : IV, Issue : VII, July - 2015

Analysing the effect of different financial ratios on the performance of the Indian Pharmaceutical Industry

Nishkam Prabodh, Yoshita Agrawal

Abstract :

This paper presents an overview of the Indian pharmaceutical industry, including statistical figures of the major players in the Large Cap, Mid Cap and Small Cap domains. Using the financial ratios of these companies, this paper suggests an econometric model that infuses the effects of these ratios in order to ascertain the financial performance of the company. It a sumes ROE to be the main indicator of the performance of a firm/sector and identifies the relationship between ROE and the different factors and from there on suggests conclusions for the decision makers.