Risk and return analysis of selected stocks in the Indian automobile industry on the national stock exchange

The Indian automobile industry has experienced substantial growth, driven by rising domestic demand, urbanization, and technological advancements, positioning India as a significant global manufacturing hub. The industry has also embraced the shift towards electric vehicles (EVs), particularly in the two-wheeler and three-wheeler segments, spurred by government initiatives like the Faster Adoption of Manufacturing of Electric Vehicles in India (FAME) and the Production Linked Incentive (PLI) schemes. This study explores the risk-return dynamics of selected publicly listed Indian automobile companies, analyzing their equity performance between 2017 and 2023. By evaluating market, financial, operational, and regulatory risks, the research aims to offer insights into the investment potential of these companies. The study investigates how systematic and unsystematic risks influence investment decisions, with a focus on prominent companies such as Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Hindustan Motors, and Ashok Leyland. Using statistical tools like mean, standard deviation, variance, and beta, the analysis provides a comprehensive understanding of the volatility, return potential, and overall risk profile of the companies. Results suggest a direct correlation between higher risk and higher returns, with Ashok Leyland emerging as a top performer, while Maruti Suzuki demonstrated more stable returns. The study also provides recommendations for investors, emphasizing the importance of diversification and long-term analysis. Despite its limitations, the research contributes valuable insights for investors looking to navigate the evolving Indian automobile sector.

Authors

Institutions

Publication Details

Journal
Edelweiss Applied Science and Technology
Published
2024-12-06
DOI
https://doi.org/10.55214/25768484.v8i6.3528
Citations
1
Primary Topic
Market Dynamics and Volatility
Type
article
Field-Weighted Citation Impact
1.13
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Risk and return analysis of selected stocks in the Indian automobile industry on the national stock exchange

Chee Pung Ng, Wong Chee Hoo, Sudhakar Madhavedi, Anugu Anil Reddy
1 citations
Edelweiss Applied Science and Technology
Market Dynamics and Volatility
1.13
article

Risk and return analysis of selected stocks in the Indian automobile industry on the national stock exchange

Chee Pung Ng, Wong Chee Hoo, Sudhakar Madhavedi, Anugu Anil Reddy
article en
1 citations

Abstract

The Indian automobile industry has experienced substantial growth, driven by rising domestic demand, urbanization, and technological advancements, positioning India as a significant global manufacturing hub. The industry has also embraced the shift towards electric vehicles (EVs), particularly in the two-wheeler and three-wheeler segments, spurred by government initiatives like the Faster Adoption of Manufacturing of Electric Vehicles in India (FAME) and the Production Linked Incentive (PLI) schemes. This study explores the risk-return dynamics of selected publicly listed Indian automobile companies, analyzing their equity performance between 2017 and 2023. By evaluating market, financial, operational, and regulatory risks, the research aims to offer insights into the investment potential of these companies. The study investigates how systematic and unsystematic risks influence investment decisions, with a focus on prominent companies such as Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Hindustan Motors, and Ashok Leyland. Using statistical tools like mean, standard deviation, variance, and beta, the analysis provides a comprehensive understanding of the volatility, return potential, and overall risk profile of the companies. Results suggest a direct correlation between higher risk and higher returns, with Ashok Leyland emerging as a top performer, while Maruti Suzuki demonstrated more stable returns. The study also provides recommendations for investors, emphasizing the importance of diversification and long-term analysis. Despite its limitations, the research contributes valuable insights for investors looking to navigate the evolving Indian automobile sector.

Edelweiss Applied Science and TechnologyVol. 8(6)
INTI International University (MY), Telangana University (IN)
Sustainable cities and communities
Openalex Percentile: Top 11%
Market Dynamics and Volatility
1.13
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.