Homebeginner1 time learning fundamental analysis in share market, people ask you Tips.
1 time learning fundamental analysis in share market, people ask you Tips.
July 13, 2022
People will ask you for Tips in share market after learning fundamental analysis.
In this article we will learn the basic knowledge of share market. There are so many things to learn in Share market, you meet every day to learn something new in the market and this is where you get to experience new things. Therefore, it is very important to monitor the stock market on a daily basis. You already know share market. This gives you an idea of what’s going on in the share market right now. The first study to understand Share Market is to study fundamental analysis.
Fundamental analysis gives you a good idea of the stock in the market. This helps us to understand which stock may benefit us in the future or which stock may go into loss. Through this fundamental analysis, one can choose the best stock by knowing the complete information of the stock. Can Incoming Calls Really Make You Profitable? We can only determine this by studying it. If you are being cheated by this, then you understand and you can save your future loss. Therefore, it is very important to know the fundamental analysis of stocks in the share market.
In the current era, people who are working in the share market or new entrants, these people are understanding which stock will go up or down on the reliance of Tips and are investing money on it. If you understand today’s article carefully, you will not need the tips of others, just as you know how to choose a good profitable stock yourself. If you understand this article well, other people will start asking you for Tips in share market, because it provides detailed information on fundamental analysis, you can become an expert if you know this information.
Anything needs to use comnsens. Most people do not use comnsens and people who do not use comnsens in the share market lose a lot in the stock market and these people are in large numbers. These people use other people’s tips and invest money on them without knowing about them, which leads to their loss. But today we don’t want to ask for tips from others, we want to tell them to others. But how are we going to do this? You may have had such a question. All you have to do is follow the activity in this article.
We will look at fundamental analysisrandom stock above, this will make it easier for you to understand. You can open the website in share market which br you are using. After that we will choose any stock and see how this stock will grow or fall in the future. You will find large cap, mid cap and small cap companies in stocks. Large cap companies you know. It has big companies like TATA, Reliance, HDFC, etc … These large companies have less risk because they have a strong market capitalization. The risk is slightly higher in MID cap and the risk is higher in Small cap.
Small cap consists of small and new companies. These companies will sometimes get bigger or sink completely in less time, so the money invested in this filed can increase 4-5 times or it can be zero. So now we are going to analysis the stock. There are so many types it’s hard to say. We will now do fundamental analysis of a large cap company and then analysis a small cap company. All you have to do is open the stock screen of the company you want to analysis first, but don’t look at the price first.
Large Cap Company Fundamental Analysis.
Suppose you open hindusthan uniliver on the stock screen. You do not want to see the price of hindustan uniliver right now. The first time you open the financial page, it has nothing to do with whether the stock price has gone up or down. You only mean financial. Financial means what is the revenue of the company ?, What is the profit of the company ?, What is the net income of the company? So what is the top line revenue and what is the bottom line net income. If you use so many commonalities in how much the company generates income, because what is most important in business, is to generate profit. If a business does not generate income, it does not last long.
It is 23,852.32 / – crore in 2012 and this revenu has increased to 47,438.00 / – in 2021 over the next 10 years. So the revenu of this company is going to be positive, so here we have the green signal. Now let’s check the net income. In 2012, the net income of this company is 2,790.66 / – crore, this income has increased to 7,995.00 / – crore in 2021, so this company is generating income. But what is the use of generating income in this because you have to understand the debt burden on this company.
The debt burden on the company is high and nothing is profitable. Suppose a company generates an income of Rs. 1 lakh per month, but the debt burden on that company is Rs. 1 crore. So you don’t know how this company will repay the loan. For example, if a person asks you for a loan of Rs. 1 lakh, if he already has a loan of Rs. 20 lakh, then the question is how he will repay this Rs. 70 lakhs, then you will know that this man can go ahead and sell the house and get his money back.) The same thing happens with the company.
If you want to know how many assets a company has, you should look at its balance sheet. When you come to the balance sheet page of the company, in 2021, the company has assets of 20, 153.00 crores. But it is also important to see whether these assets are increasing every year, not that the assets are declining. The assets of this company are increasing every year, but these assets are the house but how much is the current loan. The balance sheet shows the total liabilities of Rs 11,907.00 crore but the company has assets of Rs 20,000 crore and debt of Rs 12,000 crore. So its Situation is in good condition. But the assets of this big company are constantly fluctuating.
The company may have more asset. The company’s assets consist of large machines. In this case, if the machines of this company are worth Rs. Therefore, it is very important to know the difference between the assets and liabilities of the company. The assets of this company are more than the liabilities. So we have a green signal here. After that we would check the cash flow of the company. In this we will see how much money the company has. If there is so much and the company does not have money, then it is of no use. If you look at the cash flow of this company, the cash flow of the company has been increasing continuously for 4 years. The company has a cash flow of Rs 6,751.00 crore in 2020, which means it has money. So this is the green signal here.
In Hindusthan Uniliver, we learned about three activities in which we found green signal in all the three activities. This is how you will find activity in all the big companies. At the top of these pages you will find some indicaters, which show that (the company’s income has increased so much persentage in chas flow) but the company shows nothing in this indicator so you don’t want to pay attention to this. At the bottom of the page of this company, you will see the option of annual report, in which big companies are uploading their annual report every year. We can also download this report. It also has investor pregation available. It is very important to watch.
Most people don’t see the company’s annual report or investor pregention. They also don’t know where the company’s cash flow, balance sheet is, someone said to take stock and make a loss as the stock price goes up. In this we have just analysed this stock, from which we know that there is a green signal in all the three activities, now we will turn to price analysis. When you come to the page of Overview, you will see that the income, balance sheet, asset of this stock has been increasing since 2012, Similarly, the price of this stock is increasing like a graph. This graph will show the graph going up and down from time to time in some places, but it doesn’t matter because we are going to invest money in this stock for long term, so we can get good profit from this big stock in next few years. This way you can make a good profit book by investing long term money in the stock market by doing a fundamental analysis of the stock yourself.
Small Cap Company Fundamental Analysis.
Next we will analyies a small cap company. These small cap companies have a lot of small companies, most of which are companies you don’t know about. In this we will do a stock analysis of a company called Burger King. In this we will not see the price of this stock but we will go directly to the balance sheet of the company. Of this, its revenu is 7.97 crore in 2014 and is going to increase to 846.83 crore in 2020, so we have the green signal here. But it is important to look at how the net income is, this company has a loss in net income every year and this company spends money of investor people every year. Of this, the loss is -24.85 crore in 2014 and -75.56 crore in 2020. So this place has a red signal.
Now we are going to check the balance sheet of the company. Of this, the company had assets of Rs 698.46 crore in 2017 and Rs 1197.88 crore in 2020. It is also very important to check the liability of the company. Because if the difference between the company’s liability and assets is small, then there is a red signal. The company had 330.91 in 2017 and 922.46 in 2020, with little difference in the company’s assets and liability. So these places are a red signal to this company. In this, some companies increase their assets, we should be aware of this danger. Let’s face it, the cash flow of this company is negative because the company has no cass available. The company has -96.61 crore in 2017 and -114.81 crore in 2020. So this company is on the verge of sinking in the future. To invest in this company is to book a loss. This is how to invest money in companies by doing fundamental analysis of different companies and if you become an expert by practicing in this, people will start asking for tips from you.
As per the above activity, if you study fundamental analysis and start investing money in the market, you will never go into loss, at the same time other people will start asking you for these Tips and calls. Also some companies make money by selling their calls to people like this, similarly you can make good money from these Tips. Keep visiting our website to know some share market related information as well as to learn new things. Thank you for reading this article wholeheartedly and may the same guidance be with you.