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VOL. 11, ISSUE 10 (2025)
A comparative study on financial performance analysis of selected automobile companies in India
Authors
Muniraju G, Dr. A Muthumoni
Abstract

This study provides a comparative financial performance analysis of major listed Indian automobile companies (Maruti Suzuki, Tata Motors, and Mahindra & Mahindra) over the period 2018–2023. Employing a methodology that combines comprehensive ratio analysis, the DuPont framework, and statistical validation, the research evaluates the divergent strategic financial models operating within the sector.  

Key findings establish two distinct archetypes: Maruti Suzuki follows a conservative, efficiency-driven strategy characterized by negligible financial leverage (Debt-to-Equity ≈0.01) and superior operational efficiency, evidenced by an Inventory Turnover Ratio peaking at 25.87 times. In stark contrast, Tata Motors adopts a highly capital-intensive model, relying on aggressive financial leverage (D/E up to 1.17) to fund its diversified asset base and significant strategic investments. The DuPont decomposition confirms that Tata Motors amplifies shareholder returns through high asset utilization (Fixed Asset Turnover 2.12x) and leverage, while Maruti Suzuki’s returns stem from margin mastery. Furthermore, the analysis reveals that high R&D intensities (up to 5.7%) aimed at the mandatory EV transition (projected 40% penetration by 2030) temporarily pressure short-term solvency. The conclusion emphasizes that for high-CapEx firms, long-term valuation must prioritize the strategic value of growth investments (which take 1–3 years to translate into value) over immediate liquidity concerns.
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Pages:64-70
How to cite this article:
Muniraju G, Dr. A Muthumoni "A comparative study on financial performance analysis of selected automobile companies in India". International Journal of Commerce and Management Research, Vol 11, Issue 10, 2025, Pages 64-70
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