Evaluating Profitability of Selected Companies of NIFTY 50

Abstract

A company's profitability immediately affects the decisions of its stakeholders, making it a critical factor in assessing its effectiveness and long-term viability. From 2011–12 to 2020–21, the profitability of a subset of companies listed in the benchmark index, the NIFTY 50, is examined in this study. These important profitability ratios were examined in order to assess performance: Net Profit Margin (NPM), Return on Equity (ROE), Earnings per Share (EPS), and Return on Assets (ROA). The results, which were obtained using a one-way ANOVA test, show that the chosen companies' EPS, NPM, ROE, and ROA differ significantly. For investors, legislators, and business decision-makers, the study offers valuable insights into the relative efficiency of NIFTY 50 companies.