Financing compatability: a study of pharmaceutical companies of India

Since the liberalization of Indian economy, there has been a continue research on company financing activities, particularly aimed at understanding how companies finance their activities and why they finance their activities. In practice, it is observed that finance managers use different combinations of debt and equity to meet the various financial requirements of the company at least cost and risk. Therefore, this study is aimed to make the comparative analysis of capital structures of various companies for the period of 2011–2012, determine the company having effective capital mix and analyse the effect of changes in capital structure over the period of time on the company's performance. To study the set objectives, this paper include the comparative analysis of detail financial information of three most reputed pharmaceutical companies, that are Dabur Ltd, Sun Pharma Ltd, Cadila Health Care Ltd related to the financial pattern over the period of time.