The analytical study of Altman Z score on NIFTY 50 Companies

Abstract

Stock market investments are subject to market risks and there is a possibility for loosing of all the money invested. Investment decisions are so crucial for a successful investor. Investors are using different techniques for stock selection and for investment. The Altman Z-score is a widely used measure that applies an algorithm that has been found to have useful predictive value on the likelihood of a business going bankrupt. In this paper trying to assess the Altman Z-score  of NIFTY 50 companies excluding banks and financial companies. The score tries to predict probability of default by the companies due to the financial distress based on the current financial statistics of the company.