Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being 1st in Two Wheelers and 4th in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year.
At present the industry is enjoying a growth rate of 14-17% p.a., with domestic sales growth at 12.8%. The growth rate is predicted to double by 2015. The current growth rate indicates that by 2012 India will overtake Germany and Japan in sales volumes. India is the fourth largest car market in Asia – recently crossed the 1 million mark.
In this project we have undergone an analysis of India automobile industry by using some Fundamental tools like Income Statement, Balance Sheet and Ratios. In order to better understand the performance of the industry we have taken two major players i.e. HERO HONDA in two wheeler industries and MARUTI SUZUKI LTD. in four wheeler industry the basis of selection is on their Market share.
Fundamental analysis is an examination of future earnings potential of a company, by looking into various factors that impact the performance of the company.
A company’s financial statements provide the most accurate information to its management and shareholders about its operations, efficiency in the allocation of its capital and its earnings profile.
Income Statement (Profit & Loss)
A profit & loss statement provides an account of the total revenue generated by a firm during a period (usually a financial year or a quarter), the expenses involved and the money earned.
The Balance Sheet
Assets owned by a company are financed either by equity or debt and the balance sheet of a company is a snapshot of this capital... [continues]
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