Wealth Creation in the Indian Pharmaceutical Sector an EVA Approach

Abstract

Economic Value Added for the sample 30 Pharmaceutical companies listed on the National Stock Exchange, India and that formed part of the S&P CNX 500 was calculated for the period of five years, from 1^st April 2006 to 31^st March 2011. Majority of the pharmaceutical companies showed positive Economic Value Added. This represents that the pharmaceutical companies were able to add value and create wealth for their shareholders. The study is an aid to the investors to make investment decisions and helps them to achieve their long term objective of wealth maximization.