šŸ“¢ Ask Me Anything About Fundamental Analysis: Aug 21, 4-5 PM!

Hi @Rameez this is not a recco, but am personally looking at some consumption stories (benefits from expected GST cuts), private banks that have not moved in the past few years.

@MOHAN_RAM_6192242 mein hindi mein type nahi kar paunga..but asha karta hu yeh jawab aapko help kare…

Company saaf saaf batati hai, ki voh dividend pay karengi ya nahi. Yeh annual report mein data hota hai.

agar aap simple google karenge - highest dividend yield company in India, appko jawab mil jayega. Iske alawa kaafi sccrener hai jo aapko help karte hai

How to read P&L statements and what important things to check?

Kya fundamental se ye bta skte h ki company kb tk upar jayegi jaise short term k bare me janana ho to like

15 days

1month

1.5 months

2months ………

What are the limitations of P/E ratio and when should we avoid using it?

How can I correlate fundamental analysis with technical chart to invest. Can I mix those to get buy or sell signal?

Hey @POOJA_AMIT_1550411 you want to start with looking at the whole P&L. People only focus on the sales and net profit only. So look at things like gross and EBITDA margin. You want to try and analyse profitability at each level. So for example, if you look at a lot of new fintech companies…they are profitable at the gross margin level, but due to higher marketing and promotion costs, lose money at EBITDA level.

Similarly, there are some companies that are EBIT profitable, but have such a high interest cost, it eats up their profits.

Point being - identify where the strength or pain lies for the company. and then you can judge if the company is taking steps to work on them,

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HI @GANESH_1082726 the PE ratio is not applicable to banks and loss making companies. For banks - PB is better ratio since it reflects the latest value of the assets. For loss making companies, since earnings are negative..the PE is no help.

The PE is also not a good measure of cyclical companies. During strong earnings cycle, the PE will artificially look low and vice versa. You will land up making the wrong investment decision.

PE is also not helpful when you compare one company with a lot of debt versus one with limited or no debt.

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Hey @SATYAVAN_S_1689302 a lot of people do that. they analyse companies fundamentally and then use technicals to gain a good entry and exit point. Its a good mixture of both disciplines.

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Hi @MOHAN_RAM_6192242 nahi sir. FA long term ke liye hota hai. aur investing mein help karta hai. Trading ke liya technical analysis aur frankly thoda common sense and awareness help karta hai. COVID ke baad agar aapne news padha hota, to pata chal jata ke companies ko technology mein invest karna tha aur IT benefit karega.

Ek baat jarur yaad rakhiye – koi bhi aapko nahi batayega ki company ka price kab upar jayega!

Aapki side se thoda aur btao fundamental k bare me

@MOHAN_RAM_6192242 kya janna chaenge app? mein personally discipline se invest karta hu. Mahine ki salary ka ek fixed percentage every month invest karta hu. Jo bhi stocks mere paas hai, woh kaafi time se hai aur mein unhe kaafi time tak hold karunga!

Salary ka kitna persentage

Just ki individual kitna krte h aur avarage kitna krte h

Aap kitna krte h aur avarage invester kitna krte h

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Hi @Jay_Mehta

I meant this
API for fundamental analysis - Developer API - Upstox Community