@Dylan_Tom_49781351 and @POOJA_AMIT_1550411 - You’ve reached the AMA thread. Just post all your questions here and we will answer them. We are LIVE till 5 PM.
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How do you judge whether a company’s debt levels are manageable or risky?
Jai shree Krishna,
We are new to fundamental
Technical to bahut padha h
A few common things to look at could include - earnings growth, ROE profile, size of the companies, market share.
Besides that, each industry has their own unique metrics as well. So, in retail you would look at Same store growth (SSR), in banks it would be NPAs, in Autos - you compare products at different price points. In commodities you can look at utilisation data.
HI @MOHAN_RAM_6192242 welcome to fundamentals. Please ask your question
I trade in options and i use various indicators along with data pattern and market sentiment, global news, major indices movement, Gift nifty, VIX and whatever it takes, i do it promptly, i always try to give my 100% my question is how can i determine, this move of index can give me 5% on my buying price?
and what is easiest formula to match index price with option price, it would be really great if you share some tips or techs to judge option price with index movement.
Hello Sir, what factors should one consider before investing in any company for the long term?
Hi @Rameez Here are a few ways to judge it. Look at something like an interest coverage ratio (EBIT / interest). the lower the ratio, the more difficult it is for a company to manage debt. there are some companies whose interest obligations are almost as much as their EBIT…that should tell you something.
Ratios like Debt: Equity also help. higher the ratio, more the debt. A word of warning here, just by looking at numbers you cannot conclude anything. A lot of capex heavy industries (think telecom, refineries) could have higher debt, but they are used to operating in an environment like that. In a case like this, I would compare D/E across similar players and see who has the highest debt
Konsi konsi baten dhyan me rakhni h
Jo hme read krni h
Aur related source jahan se hm company k bare me jaan ske
Short term point of view and long term point of view
Yes, you’ve reached the AMA thread. Just post all your questions here and we will answer them. We are LIVE till 5 PM.
For long term investing, the main thing to have is your own investment thesis. Be very clear on why you are investing in that company and what is the trigger that will help that company grow.
Besides that, factors like earnings growth, ROE, debt profile, management track record, industry they operate in are all very critical to look at.
At Upstox, we are doing a detailed crash course on company analysis. that can greatly help you. Please check it out, if you find it helpful. In the meantime, happy to keep answering questions here
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Kai saari baaten dhyan mein rakhni hoti hai. Short term - comapny ka next quarter kaisa hoga, agar koi external disturbance aa gaya (tariffs for example), ya jaise ab gaming mein ek bill aaya hai, jisne industry ko thoda nervous kar diya hai.
Long term - industry grow karegi ki nahi, kya company industry se faster grow kar sakti hai. Kya company ka managment majbut aur visionary hai.
these are just a few things one must look at
HI @Uma_17897934 unfortunately I am not an options expert. But we do conduct such AMAs for that as well. Please be on the lookout for a notification from us for the same.
In the meanwhile, please trade safely
How do dividends and payout ratios factor into evaluating a company’s fundamentals?
Why companies share price is not growing despite having good fundamentals
many thanks !!!
Which sectors in India currently look strong from a fundamentals perspective?
Hi @Shweta Dividends are part of the overall returns an investor gets. So when you are calculating your returns from the investment, you would include dividends as well.
Besides that..a company that pays regular dividends or is able to maintain its payout ratio during a lean year - might just be a financially strong company…so that should be factored in your evaluation of the company
कैसे पता करें कि कंपनी डिविडेंड देगी या नहीं
हाइएस्ट डिविडेंड वाली कंपनी कैसे ढूंढें
Hi @Anil_49046146 If you have done your work and you are confident it is a good investment…it will go up. For example…see reliance’s performance from 2010 - 2017ish…the stock did not move. But see the returns after that (not a recco). So patience is essential.
Also, please keep evaluating your investment thesis and make sure you are on the right track. Also, has the comapny rallied a lot before you invested? Sometimes even they need breathers