Analytical Survey on the Trend of the Market Price of Shares and the Impact of Net Profit on Share Price - A Case Study: Indian Automobile Industry

The company’s earnings are a main determinant of the stock price, because the earnings indicate the operational result of the firm and its future success. Therefore, companies are required to inform theinvestors about its performance. Stock price is an indicator about the health of the company.Increased profits will drive the stock price up and excessive debt will drive it down. Net profit is one of the most closely followed numbers in finance, and it plays a large role in ratio analysis and financial statement analysis. Shareholders look at net profit closely because it is the source ofcompensation to shareholders of the company. The objective of the study is to study and analyze performance of shares of the selected Automobile companies in the Indian stock market. The study intends to examine the Net profit over a period of 7 year from 2007-8 to 2013-14. The results of thestudy show that there exists a strong positive correlation between net profit and share price, and share price fluctuates with change in net profit in the selected companies. Due to RegressionEquation, this highlights the fact that the model is fit to the input data and statistically it is significant.

کلیدواژه ها:

Movement Trend ، Share price ، Net profit ، Shareholders