Analysis of Stock

Hello guys, 

I have been getting many requests asking 'How to Analyze a particular Stock?" So I felt I should share what basics I look for, so that everyone also can learn and take advantage of it. Although there are many other aspects and there is this instinct that comes when I analyze a stock but there are always this rules I check. So, for anyone who wants to know how to analyze a stock read further.

For evaluating stock, I follow simple rules. Firstly you need to be aware of all the parameters that are available to analyse the pricing/valuation of the stock. I get almost all the info about the stock from moneycontrol itself. First thing I see is check is its performance over last 5 years.

Go to www.moneycontrol.com -> Search for a particular stock and visit the page.

 

Let the page Open.

​ On the page, ​you will see that there are various tabs present. Now you will see that there is 'Financials' tab present on left hand side.

Open it and go through the Yearly Results.

 

This will show how the company has performed over last 4-5 years. Do you see growth there?

Sales Growth:

Check the parameters like Sales, PBT, PAT, EPS and Net Profit. Now you need to compare the same with its peer companies.

If you are convinced and you see that the company has posted better numbers in ratio than its peers, the company is growing good.

Click on Quote to get all the info of the stock.

I have to split the blog in 2 parts as the website www.blogspot.com is not allowing me to post the whole article in one page. This is one of the reason my post got delayed. For further important instructions, go to link http://shahstocks.blogspot.com/2015/03/analysis-of-stock-part-2.html

Click below link for downloading copy of Microsoft Word file:
ShahStocks Stock Analysis Tutorial