Evaluating Financial Performance in the Indian Food Sector: A TOPSIS Approach to Company Assessment

Abstract

When evaluating financial performance, industry-specific elements that have an influence on the food business are taken into account, including raw material costs, pricing dynamics, the competitive environment, regulatory environment, and consumer trends. When assessing a company's general health and future prospects, it is important to take these elements into account because they have an impact on its financial performance Over the years, India's food business has undergone substantial development and change, driven by factors including shifting customer tastes, urbanisation, and rising disposable income. The industry includes a number of subsectors, including restaurants, processed food, drinks, dairy products, and confectionery. Over the years, India's food business has undergone substantial development and change, driven by factors including shifting customer tastes, urbanisation, and rising disposable income. The industry includes a number of subsectors, including restaurants, processed food, drinks, dairy products, and confectionery. Investment Decisions: Evaluating the financial performance of food sector firms enables investors to make wise investment choices. Risk management: It's crucial to comprehend the financial status of businesses in the food sector. Industry Competitiveness: Analysing financial performance sheds light on the Indian food industry's competitive environment Government agencies and regulatory organisations can use financial performance assessments to develop policies and regulations that support the expansion and sustainability of the food sector. Sector Analysis: Evaluations of financial performance help with a more comprehensive study of the Indian food business. Investment Decisions: Evaluating the financial performance of food sector firms enables investors to make wise investment choices. Risk management: It's crucial to comprehend the financial status of businesses in the food sector. Industry Competitiveness: Analysing financial performance sheds light on the Indian food industry's competitive environment Government agencies and regulatory organisations can use financial performance assessments to develop policies and regulations that support the expansion and sustainability of the food sector. Sector Analysis: Evaluations of financial performance help with a more comprehensive study of the Indian food business. Alternative Parameter taken as Company 1, Company 2, Company 3, Company 4, Company 5, Company 6. Evaluation Parameter Net Profit Margin, Current Ratio, Debt Ratio, Debt to Equity. After doing topsis analysis company 2 has ranked 1 company 2 has ranked 6. TOPSIS method provides a systematic and comprehensive approach for evaluating alternatives based on multiple criteria. It considers both the positive and negative aspects of each alternative and helps decision makers in selecting the most suitable option based on their preferences and objectives.