AN ANALYSIS STUDY ON THE EFFECT OF FINACIAL LEVERAGE ON PROFITABILITY OF THE SELECTED AUTOMOBILE COMPANIES FROM THE NIFTY FIFTY

The automobile industry is most important role in economic development and transportation systems worldwide. The primary purpose of the research work is to evaluate the effect of leverage on profitability from selected Indian automobile companies. The top five companies choose for this study are Bajaj Auto Ltd, Eicher Motors Ltd, Mahindra & Mahindra Ltd, Maruti Suzuki India Ltd and Tata Motors Ltd based on NIFTY 50. The study is covering a period of 5 years 2021-22 to 2025-26. In analysing the leverage and profitability position, financial leverage is considered the independent variable while earning per share is considered the outcome variable. The study examines how changes in financial leverage affect EPS. For the results concluded that Bajaj Auto Ltd and Eicher Motors Ltd Financial leverage and EPS have a negative relationship. In Mahindra & Mahindra Ltd, Maruti Suzuki India Ltd and Tata Motors Ltd, Financial leverage and EPS have a negative relationship. Regression analysis found that there is no effect of financial leverage on earning per share in BJL and EML but in M&M, MSIL and TML financial leverage has significant impact on EPS.