A study for equity stocks of automobile sector: with reference to tata motors, Maruti Suzuki, Mahindra and Mahindra

India is a developing country. Nowadays many people are interested to invest in financial markets especially on equities to get high returns, and to save tax. Equities are playing a major role in contribution of capital to the business. The field of equity research is very vast and one has to look into various aspects of the functioning of the company to get to any conclusion about the possible performance of the company in the market. The Indian auto industry is one of the largest in the world with an annual production of 21.48 million vehicles in FY 2013–14. The automobile industry accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). This research paper initiated with understanding the mannerisms of the stock market trading followed by the dynamics of the automobile sector. TATA Motors, Maruti Suzuki, Mahindra, and Mahindra, the major players in automobile sector were selected for analysis. TATA Motors, Maruti Suzuki and Mahindra and Mahindra were further studied in detail with respect to their financials and the management's plans regarding the functioning of the company, their expansion plans, and various news about these companies. This research paper analyses financial information for five years of these three automobile industries by considering various ratios. This research paper deals with the fundamental analysis aspect of the equity research. The researchers in this paper have tried to look into the details of the financial statements of the companies, the environment surrounding of the automobile sector.