Abstract:
The pharmaceutical sector holds a crucial position in the Indian economy, with the performance of pharmaceutical companies drawing considerable attention from investors, stakeholders, and policymakers. This research focuses on assessing the financial performance of chosen Indian pharmaceutical firms by employing Altman's Z-Score model, with the objective of gauging their susceptibility to insolvency. The researcher has used the secondary data for the year of 2023, focusing on the top 10 pharmaceutical companies of India on the basis of the market capitalisation. The study found that all the selected pharmaceutical companies perform very well and all are in the “Too Healthy” condition. Zydus Life science Ltd and Lupin Ltd. Shows the z score 3.18 and 3.04 respectively which means they are at the threshold limit of healthy zone so company need to improve its performance. Researcher also studied that there is significant difference between the Z scores of the selected pharmaceutical companies of India. Rest of the above two companies all eight companies performing very well. The research emphasizes the importance of proactive financial management in protecting these essential industry participants, thereby guaranteeing their sustained contributions to India's healthcare sector and the global pharmaceutical markets.
