A COMPARATIVE PERFORMANCE ANALYSIS OF INDIAN MANUFACTURING AND SERVICE SECTORS COMPANIES

The present study attempts a comparative performance analysis of Indian manufacturing and service sectors companies. To fulfil this objective, the present study has considered two sectors separately and comparison has been done on the basis of descriptive analysis and trend analysis. Firm's financial performance has been analysed with the help of Return on Assets (ROA) and Return on Equity (ROE). Tobin's Q (TQ) and Market to Book value (M/B) has been employed as a measurement indicator for a firm's valuation. This study also considers Firm size, leverage, growth and liquidity and compare by applying ratio analysis. The study shows that all the financial performance (Return on Assets and Return on Equity) & valuation ratios(Tobin's Q and Market to Book value) of the manufacturing companies are better than the service companies during the study period. The study also shows that the sales growth and leverage of the manufacturing companies is higher than the service companies during the study period. But the total assets and liquidity of the service companies are higher than the manufacturing companies' average during the study period. This implies manufacturing companies are more efficient in assets management and shareholders' fund management than the service companies. The manufacturing companies are also more efficient to fulfil a growth strategy and give investors a positive approach regarding the firm's growth opportunity than the service companies as a whole.