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@article{185060,
        author = {S. GAJALAKSHMI and S. SOUNDARYA and PL AMIRTHAM and M. MAHALAKSHMI},
        title = {PERFORMANCE EVALUATION OF SELECTED NBFCS IN INDIA - USING TOBIN'S Q RATIOS WITH FUZZY LOGIC VIEWS},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {5},
        pages = {69-80},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=185060},
        abstract = {This study evaluates the valuation dynamics of five prominent Non-Banking Financial Companies (NBFCs) in India Bajaj Finance Ltd, Indian Railway Finance Corp Ltd (IRFC), Cholamandalam Investment & Finance Co Ltd, Shriram Finance Ltd, and Muthoot Finance Ltd from 2021 to 2025 using Tobin's Q ratio, augmented with fuzzy logic to address uncertainties in traditional binary classifications. Tobin's Q, calculated as the ratio of market value to asset replacement cost, is fuzzified through triangular and trapezoidal membership functions to assign degrees (0–1) to undervalued (Q < 1), fair-valued (Q = 1), and overvalued (Q > 1) categories, providing nuanced insights into market perceptions amid economic recovery, regulatory changes, and sector-specific drivers. Key findings reveal a predominant overvaluation trend across the cohort, with fuzzy overvalued degrees often reaching 1.00, reflecting investor confidence in NBFCs' growth in retail lending, infrastructure financing, and financial inclusion. Bajaj Finance and Cholamandalam exhibited persistent overvaluation, driven by consumer credit expansion, while Muthoot Finance's Q values are fluctuated with gold prices. IRFC transitioned sharply from fair/undervalued to overvalued post-2023, fueled by rail sector optimism. Shriram Finance maintained relative balance, with evolving mixed memberships, highlighting stability in MSME/rural segments. The analysis underscores NBFCs' resilience, with projected 15–17% asset growth for FY26, but warns of risks from liquidity mismatches and premiums potentially unsustainable in volatile conditions. Fuzzy logic's granularity aids investors in identifying transitional opportunities, recommending diversified strategies for long-term value in India's evolving financial landscape.},
        keywords = {Fuzzy logic, India Bajaj Finance Ltd, Indian Railway Finance Corp Ltd (IRFC), Cholamandalam Investment & Finance Co Ltd, Shriram Finance Ltd, Muthoot Finance Ltd, Tobin's Q},
        month = {September},
        }