ABSTRACT

This chapter discusses the auto sector companies. It follows the steps to do the data analysis for all the chosen companies: In case of Ashok Leyland find that there is positive correlation between debt and equity and ROE and both are increasing for consecutive years. Debt and equity is decreasing for consecutive years but, on other hand, return on equity (ROE) is fluctuating; first it increases sharply and in same fashion it falls sharply in next year. Now in order to do further analyses we have calculated MBIE and MBRD. We have found that MBRD has increased in 200910 as compared to 200809 but it decreases in 2010 11, but, on other hand, MBIE is increasing for all consecutive years as compared to previous year. All this conditions help us to conclude that Marti Suzuki India Ltd was able to maximize their shareholders wealth by leveraging debt.