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Abstract
Globalization has changed India’s economy from agrarian to service based economy. Domestic companies are getting tough competition from foreign companies. The ratio of financial sickness/ distress has increased in last few years which attracted researchers to study and predict the company performance on the basis of their financial statements. The present paper aims to predict the financial stability of Agro & allied based (Coffee& tea) Producers companies those are listed on National Stock Exchange (NSE) over the period of 2014-2018.
To achieve the objective of the study, through multiple discriminant Analysis (Altman z score) model to predict the stability of the companies. The study is an attempt to analyze the sustainability and prediction of the financial stability of agro based listed companies in India.
The Altman’s Z score calculation method to analyses the financial health of top five agro based companies through the use of SPSS statistical software package. These companies are selected on the basis of largest market capitalization value. Thus, the finding of the study is unique and it would not only help to managers but it would provide further direction of policy formation to policy makers. The study also indicates the insolvency status in the near future. The study would help to companies to take an active stop to restructure the financial performances.