A Study on Risk and Return of Automobile Sector Stocks: Maruti Suzuki and Tata Motors

Abstract

The automobile industry is one of the most significant sectors contributing to the economic growth of India. Investors often analyze automobile stocks to understand the relationship between risk and return before making investment decisions. This study focuses on two major automobile companies in India: Maruti Suzuki and Tata Motors. The objective of the study is to evaluate and compare the risk and return patterns of these companies’ stocks. The research uses secondary data collected from stock market reports, company annual reports, NSE, and BSE websites for analysis. Different statistical tools such as average return, standard deviation, beta, and correlation are used to measure risk and return. The study identifies the performance of both companies under changing market conditions and examines which stock provides better investment opportunities. Maruti Suzuki is found to provide stable returns with comparatively lower risk, whereas Tata Motors offers higher return potential with greater volatility. The research helps investors understand stock behavior in the automobile sector and supports effective investment decision-making. Overall, the study concludes that risk and return are closely related and vary according to market fluctuations and company performance.