Assessing Financial Performance: A Comprehens...

Assessing Financial Performance: A Comprehensive Analysis of Economic Value Added (EVA) and Market Value Added (MVA) at Bharat Heavy Electricals Limited (BHEL) and the National Thermal Power Corporation (NTPC)

Author Name : Dr. Maneesh Kumar, Rahul Pal

DOI: https://doi.org/10.56025/IJARESM.2023.1201241390

ABSTRACT This study conducts an extensive examination of the financial performance of National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Limited (BHEL), with a particular focus on the evaluation of Market Value Added (MVA) and Economic Value Added (EVA). EVA and MVA are fundamental metrics utilised to assess a firm’s capacity to enhance shareholder wealth and generate value for stakeholders. Through a careful analysis of the financial data pertaining to BHEL and NTPC during a designated timeframe, this study attempts to furnish a comprehensive insight into their respective capacities for value generation and operational efficiency. By conducting a comparative analysis of the EVA and MVA indicators, this study not only provides insight into the relative financial performance of the two companies but also distinguishes the elements that have contributed to their achievements or obstacles. The methodology involves conducting an analytical study that mainly relies on secondary database research. The information is derived from diverse sources, encompassing the Internet, books, and magazines.The analysis yields significant strategic implications that can inform management decision-making at BHEL and NTPC. These implications empower the companies to leverage their respective strengths while also addressing areas that necessitate enhancement.Additionally, it offers practical recommendations for improving shareholder value and organizational performance within the ever-changing business landscape