Evaluating Investment Potential of Selected NSE Stocks through Fundamental Analysis

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Published: 2026-05-12
DOI: https://doi.org/10.70102/5ybqsb37
Keywords:
Fundamental Analysis, EIC Framework, Valuation Metrics, NSE India, Value Investing, Financial Econometrics

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Thanga Kumar R
Ph.D Research Scholar, Annamalai University Department of Commerce Chidambaram Roll No: 1905240078
Dr. R Jagannathan
Assistant Professor, Department of Commerce, Rajeswari vedachalam Government Arts and science College, Chengalpattu (Deputed from Annamalai University, Chidambaram)

Abstract

This study presents a comprehensive fundamental analysis of selected blue-chip equities listed on the National Stock Exchange (NSE) of India, spanning the financial years 2021-22 through 2025-26. Fundamental analysis serves as a cornerstone for sustainable value investing, allowing market participants to isolate intrinsic equity values from speculative market noise. Adopting a structured "Top-Down" (Economy-Industry-Company) evaluation framework, this paper investigates the financial health, operational efficiency, and valuation metrics of five leading enterprises representing distinct high-growth sectors: Reliance Industries Limited (Energy/Conglomerate), HDFC Bank Limited (Banking & Financial Services), Infosys Limited (Information Technology), Hindustan Unilever Limited (Fast-Moving Consumer Goods), and Tata Motors Limited (Automotive).The empirical methodology employs a four-tiered statistical and econometric testing architecture: Descriptive Financial Ratio Profiling, Paired-Samples $t$-test (evaluating pre- and post-2023 regulatory/macro updates), One-Way Analysis of Variance (ANOVA) across sectoral valuations, and Multiple Linear Regression modeling to calculate the explanatory power of key financial drivers on Market Capitalization. The findings demonstrate that while macroeconomic variables like inflation and interest rate cycles alter short-term momentum, micro-level operational metrics—specifically Return on Equity (ROE), Debt-to-Equity ratios, and Earnings Per Share (EPS) growth—remain the true long-term drivers of market value. The paper concludes with actionable strategic insights for institutional and retail investors navigating the structural expansion of the Indian capital markets.

Article Details

Issue

Vol. 6 No. S1 (2026): Volume 6, Issue S1, 2026

Section

Articles

How to Cite

Evaluating Investment Potential of Selected NSE Stocks through Fundamental Analysis (T. Kumar R & R. Jagannathan, Trans.). (2026). International Journal of Aquatic Research and Environmental Studies, 6(S1), 872-878. https://doi.org/10.70102/5ybqsb37

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