An Empirical Analysis of Financial Ratios and their Impact on Share Price Movements: A Study of Infosys Limited

Mr. Kavin R  Mr. Thirumoorthi B

Student of II MBA, Department of Management Studies, Nehru Institute of Technology, Coimbatore, Tamil Nadu

Assistant Professor(SG), Department of Management Studies, Nehru Institute of Technology, Coimbatore, Tamil Nadu

ABSTRACT:This study looks at the impact of financial ratios on Infosys Limited's share price between 2021 and 2025. It seeks to assess the company's financial performance using important criteria including profitability, liquidity, and leverage and investigate how these ratios relate to changes in stock prices. Regression and correlation analysis are two methods used to examine data that is gathered from financial websites and yearly reports. According to the study, Return on Equity (ROE) considerably raises share prices, underscoring its significance in market value. Earnings Per Share (EPS), on the other hand, exhibits a weak link. Additionally, it mentions how outside variables like investor sentiment and the state of the economy affect share prices, giving analysts and investors important information.

KEYWORDS - Financial Ratios, Share Price Movement, Return on Equity (ROE), Earnings Per Share (EPS), Profitability Analysis, Liquidity Ratio,Leverage Ratio,Correlation Analysis, Regression Analysis, Stock Market Behaviour, Infosys Limited