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Showing posts with the label investment.

Eight golden rule, which every investor should follow before taking an investment decision in a company.

When I decide to buy stock, a common question rise in my mind, Is buying this stock is worthwhile?  Often such questions tend to tighten investors. Getting answer such questions are not less than solving a puzzle. An attentive investor must follow stock investing as if they are attempting to solve a puzzle. As an investor, if I want consistent return from the Indian equity market then I must choose fundamentally strong stock for investing. Here’s eight golden rules that investors should follow 1. Choose a fundamentally strong company for investment. To find a fundamentally strong company, we can filter out healthy companies using two-minute drill so that further investigation can be done. In a two minute drill, we assess the company's seven financial ratios and its tendency. Every investor should know about these eight financial ratio analysis. Every investor should look these points very carefully. Earning per share (EPS)- Should be growing in last five years....

How may I help you ? Ask Ashish.

I f there is a great lesson that I have learned in my life that how things are better in something (some), then there is a way to ask this question ... and a lot of them. Now, questioning does not come naturally to me. All my school and college life, I seldom questioned the fear of looking like a fool for the next five minutes. But I have learned it in a difficult way - through failures, missed opportunities, and (almost) a broken heart - that one who asks a question is silly for five minutes, but he who does not ask the question remains a fool forever. Anyway, now my life revolves around answering questions. It is also important for me to ask questions and find the answer to myself, the more questions we ask ourselves, whether it is from our life or from the investment. The answer we searched for, helps us to know more about that area. I am not a person who has all the answers (nothing), but I try to answer most of the questions that I meet with full sincerity and honesty. An...

What is Free Cash Flow, How to anylaze free Cash Flow of a company ?

F ree cash flow is one of the most important topics to evaluate a company, many of you are involved in the fundamental analysis of a company, then you must have heard of this word. However, those people who are unfamiliar with the term free cash flow, this is a mystery for them. In this post, we will discuss a wide range of free cash flows and will try to know why it is important to evaluate when researching the company. Let's try to understand this with the help of the following point. This post of mine is also important for those who want to learn to evaluate the stock. 1. What is Free Cash Flow (FCF) ? Free cash flow is cash which is available to all the investors of the company. It represents the additional cash that a company is capable of generating the necessary funds for its operation or after expanding its asset base. Here you need to understand that not all income is equal to cash. If a company is earning, it does not mean that it can spend all the incom...

Stock Analysis - Ashok Leyland.

I started screening for a quality business, which I understand and there are long-term competitive advantages and possibilities to generate free cash flow. In my mind, I decided to focus on the automotive industry in India because it is going through a recession and has been in the discussion for bad reasons (high interest rates, inflation, low sales, etc.). It is not uncommon to find a less valuable and reasonably strong business in an area that is undergoing temporary recession or recession. I restrict my screening to the automobile sector. Also, within the automobile area, I decided to concentrate or limit on screening for commercial automotive manufacturer. My screening process within the commercial vehicle manufacturer company area had been narrowed to those companies who have earned a return on equity of 15% higher, with internal accretion (lower credit level and negligible equity dilution) And the sound has increased through working capital management. The scre...