For many years Shareholder value creation or shareholder wealth maximization have turned into the corporate objective. Measuring the performance and value creation is an essential part of any organization and this enables the organization in forming strategies in achieving the corporate objective. The Economic Value added (EVA) developed by Stern Steward Co., has been broadly acknowledged and used by all levels of corporates across the globe for measuring and evaluating the firm's performance

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... d shareholder value. The present study examined the shareholder's value creation in Indian pharmaceutical companies as measured by EVA. The Wealth creators and destroyers have been identified in the Pharmaceutical sector during the study period 2007-15. The Highest Average EVA generated by the Piramal Enterprises Ltd during the study period is 1020.84 cr. The study shows that 39 firms out of 77 were wealth creators. Finally, the conclusion is made that the companies with positive EVA will be able to attract investors in the future. Whereas negative EVA firms are not able to earn a return that is at least sufficient to cover up its overall cost of capital employed. EVA based performance framework not only provides the financial performance, it helps the management in strategic decision making in enhancing shareholder value.