Equity Valuation and Analysis of Auto Ancillary Companies in India

The essence of the study was to optimize portfolio returns by analyzing stock market dynamics and the behavioral aspects of the investors. Primary findings of the study revealed that psychological facets (i.e. disposition, endowment, fear of regret and framing) impinge on investment decisions. The crux of the work was to determine the extent to which a well researched stock with strong fundamentals and calculated market timing could earn extra ordinary returns. Particularly, the Indian auto ancillary segment was targeted as a few conspicuous players controlled the market; stock beta was less than one and stock volatility was not time dependent. A detailed study of the operating environment revealed that though the industry was fragmented and only a minuscule 0.4% of the global US 1.2 trillion dollar industry, augmented turnover and exports indicated immense potential for growth and earnings in this sector.

Autorentext

The author has been teaching Financial Management since the past fourteen years. She has a keen interest in analyzing stock market movements and has a flair for teaching. To cherish her zeal, she has developed her PhD thesis to analyze stock market dynamics and investment behavior, by linking theoretical aspects to practical situations.