Abstract

Fundamental analysis is the examination of the underlying forces that

affect the wellbeing of the economy, industry groups, and companies.
As with most analysis, the goal is to derive an actual picture of the
current scenario persisting in the company or industry and with this
trend future value can be ascertained for better investments. At the
company level, fundamental analysis may involve examination of
financial data, management, business concept and competition. At the
industry level, there might be an examination of supply and demand
forces for the products offered. For the national economy, fundamental
analysis might focus on economic data to assess the present and
future growth of the economy. To forecast future stock prices,
fundamental analysis combines economic, industry, and company
analysis to derive a stock's current fair value and forecast future value.
The Indian Automobile industry has a growing potential on comparison
with other developing countries . The automobile industry accounts for
22 per cent of the country's manufacturing gross domestic product
(GDP).To match production with demand, many auto makers have
started to invest heavily in various segments in the industry in the last
few months. The industry has attracted foreign direct investment (FDI)
worth US$ 12,232.06 million during the period April 2000 to February
2015, according to the data released by Department of Industrial Policy
and Promotion (DIPP).

Keywords : Fundamental analysis, The Indian vehicle industry ,

Financial ratios.