PERFORMANCE EVALUATION OF NIFTY 50 NON FINANCIAL COMPANIES IN INDIA: AN ENTROPY BASED TOPSIS APPROACH
Description
This study evaluates the financial performance of 39 non-financial companies listed on the Nifty 50 index in India for the financial year 2022-2023. The analysis employs the Entropy and TOPSIS approaches to assess the companies based on seven key financial ratios. The Entropy method determines each criterion’s weight, objectively evaluating their relative importance. Subsequently, the TOPSIS method ranks the companies by comparing their financial performance against an ideal solution. The findings provide valuable insights into the relative performance of these companies, offering a comprehensive view of their financial health and operational efficiency during a period marked by economic volatility and post-pandemic recovery. This study aims to assist investors, financial analysts, and policymakers in making informed decisions by identifying top-performing companies and understanding the factors contributing to their success. The results also shed light on the critical financial metrics significantly influencing the company’s performance in the Indian market. The entropy analysis showed that the debt-equity ratio is the most significant performance indicator, while the net profit margin (NPM) is the least significant criterion. Subsequently, TOPSIS analysis revealed that Nestle India Ltd. was the top performer during the study period. On the other hand, the company Bharti Airtel Ltd. has shown poor performance and requires more attention for improvement in some areas.