• Munmun Pawankumar Sharma
• Dr. Madhuri Gupta
• Dr. Kapil Dev

The present study explores the impact of selected financial ratios on annual stock return for selected pharmaceutical companies listed on national stock exchange in India. The evaluated variables in the study are annual stock return, current ratio, inventory turnover ratio, asset turnover ratio and net profit margin. The time series data of 25 companies for a period of 5 years from April 2013 to March 2018 is used. Hausman test has been utilized to examine which model is suitable for analysing the panel data. Accordingly, Fixed Effect Model is found to be more suitable for the study. The results have showed a positive impact of Asset turnover ratio and a negative impact of current ratio and inventory turnover ratio on annual stock return.

Panel Data analysis, Pharma Industry, Financial ratios, Average Market Stock Returns

"MEASURING THE IMPACT OF FINANCIAL RATIOS ON STOCK RETURNS: EVIDENCE FROM PHARMACEUTICAL COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 3, page no.1302-1307, March-2019, Available :http://www.jetir.org/papers/JETIR1903K85.pdf

"MEASURING THE IMPACT OF FINANCIAL RATIOS ON STOCK RETURNS: EVIDENCE FROM PHARMACEUTICAL COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 3, page no. pp1302-1307, March-2019, Available at : http://www.jetir.org/papers/JETIR1903K85.pdf