Every individual always wishes to get a decent return on his/her investments because investor makes the investment from the hard earned savings. Among the various schemes of investment, equity market is considered to be one of the most rewarding avenues even though it involves more risk. Since the risk is very high in equity investment, the investors need to make equity analysis that helps them to know about the risk return characteristics of those equity shares and those industries in which he/she wishes to park the savings. In this outlook a study has been undertaken to analyse the equity shares of companies in automobile industry of Indian stock market. Indian automobile industry is one of the largest in the world and considered to be one of the fastest growing sectors. In order to maintain the growing demand many auto makers have started to invest in this industry. So the study on equity analysis of this industry will help the potential investors in taking informed and rational investment decision. This study is conducted for a period of 5 years, covering from 2012 to 2017. It takes only 50% of the total companies forming NIFTY Auto index as on 21st April 2017. That is 8 companies. From the analysis, it is found that among all other companies Mahindra & Mahindra Ltd is the best company to invest because its beta value is less than one (0.9082) and it has a positive alpha value (0.0073).