Main Article Content
Abstract
The present research work has been undertaken to study the relationship between profitability ratios and share price movements of SENSEX companies and to assess the impact of profitability ratios on share price movements of SENSEX companies. The researchers considered 30 companies which are constituted in the index of SENSEX of BSE as sample. The researchers used ratio analysis as financial tool and descriptive statistics, correlation analysis and regression analysis as statistical tools. The study period was 11 years from 2006-07 to 2016-17. The researchers found that share price movement in terms of return on shares of the sample companies had significant relationship with operating profit ratio and dividend growth rate during the study period, both the relationships were positive but found to be weak. It was also found that operating profit ratio, firm size and dividend growth rate had significant impact on share price movement of SENSEX companies during the study period, of which firm size had negative impact and other factors had positive impact. At a whole profitability ratios did not have major impact on share price movement of SENSEX companies during the study period.