Using the Altman Z-Score Model to Forecast the Financial Distress of a Subset of NIFTY 50 Companies in the Indian Stock Market

Abstract

The financial stability of a company has a significant impact on the growth of a country and the well-being of society. Financially sound companies safeguard stakeholders' funds and utilize them for the benefit of society and the nation. This study aims to assess the financial distress status of selected NIFTY 50 companies in the Indian Stock Market. Out of the 50 NIFTY 50 companies, only those outside the finance industry were chosen for analysis. The researcher utilized the financial statements of these companies as secondary data for the period 2022-23. This research paper is descriptive and analytical in nature. The Altman Z-Score model was used by the researcher to measure the financial distress of the companies, revealing that out of the 39 selected companies, 9 are in a state of bankruptcy.