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International Research Stars

Volume 4, Issue 2, 2025

LIQUIDITY AND PROFITABILITY PERFORMANCE IMPACT ON MARKET CAPITALISATION CONCERNING TATA MOTORS

PAVAN KUMAR R and MURALIDHAR V

1. PAVAN KUMAR R, , Department: Management, NSB Academy, Affiliated to Bangalore University, Bangalore, Karnataka, India.. https://orcid.org/0009-0004-1330-7084

2. MURALIDHAR V  , Muralidhar .V, Assistant Professor, Department: Management, NSB Academy, Affiliated to Bangalore University, Bangalore, Karnataka, India. Email Id: muralithecoach@gmail.com, https://orcid.org/0000-0001-6379-0730

Publisher: Research Stars

Received: January, 02, 2025
Revision Received: February, 18, 2025
Revision Received: March 22, 2025
Accepted: March 27, 2025
Published: April 19, 2025

Research Article

Open Access

Article Preview

This study investigates the financial performance and market valuation of Tata Motors Limited over a ten-year period from 2014 to 2024, utilizing key financial ratios including current ratio, quick ratio, cash ratio, gross profit ratio, net profit ratio, and market capitalisation. Through descriptive statistical analysis, correlation, regression, and ANOVA, the study highlights significant liquidity constraints, inconsistent profitability, and high volatility in cash reserves. The findings reveal that while gross profit positively correlates with market capitalisation, net profit and liquidity indicators show weak or negative relationships, reflecting operational inefficiencies and market uncertainty. Regression analysis confirms that the selected financial ratios lack statistical significance in explaining market capitalisation, indicating the influence of external and strategic factors beyond traditional financial metrics. The study concludes that sustainable financial performance and investor confidence in Tata Motors are likely dependent on improved profitability consistency, strategic liquidity management, and technological adaptation in a competitive automotive industry. The insights contribute to a deeper understanding of financial health assessment and valuation relevance in emerging market firms.

Liquidity Ratio,

Profitability Ratio,

TATA Motors, 

Market Capitalisation

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APA Reference:
PAVAN KUMAR R and MURALIDHAR V (2026); LIQUIDITY AND PROFITABILITY PERFORMANCE IMPACT ON MARKET CAPITALISATION CONCERNING TATA MOTORS , International Research Stars, ISSN: 2583-276X, V4, I2, Pp: 1-17.