This research provides a comprehensive financial analysis of the capital budgeting practices at Shiva Texyarn Ltd., Coimbatore, using key evaluation techniques such as Payback Period (PBP), Accounting Rate of Return (ARR), and Net Present Value (NPV). The study aims to assess the effectiveness and viability of the company’s investment decisions over a five-year period (2020–2024). Results indicate variability in project profitability, with certain years demonstrating high returns and efficient capital use, while others reflect suboptimal outcomes and potential financial risks. The findings highlight the importance of adopting appropriate capital budgeting tools and maintaining consistent evaluation practices for sustainable financial performance. This study serves as a practical reference for improving investment decision-making in mid-sized manufacturing firms.