THE IMPACT OF FINANCIAL VARIABLES ON SHARE PRICES: A COMPREHENSIVE ANALYSIS OF INDIA'S LEADING AUTOMOTIVE COMPANIES

This study examines the relationship between financial variables and share prices within India's automotive sector, focusing on four major companies selected based on market capitalization.Using secondary data from annual reports spanning fiscal years 2016-17 to 2020-21, combined with share price data from the Bombay Stock Exchange, we employed correlation and regression analyses to assess these relationships.Our findings reveal that financial variables significantly influence share prices, with Maruti Suzuki India Ltd. demonstrating the strongest correlations across multiple financial metrics.However, the impact of financial variables varies considerably among different automotive companies, with the asset turnover ratio showing minimal influence across all studied firms.These results provide valuable insights for investors considering automotive sector investments and highlight the importance of company-specific financial analysis in investment decision-making.