How to Do Stock Analysis Yourself ?


The Most Challenge part of investment is doing the Stock  analysis. Researching a corporation needs  to uncover important data of a few company and decide that which stocks to sell or  Buy.

Let us undergo through number of ways that to search out important data a few company:

  1. SEBI Filings – Corporations have to be compelled to report back to the SEBI by law. looking SEBI filings for quarterly & annually  reports foe few company is a wonderful place to begin your analysis.
  2. Analyst View – Brokerage Firms & analysis corporations give analysis report to investor that summarize the corporate and make a case for the opinion towards a selected investment.  It doesn’t required to begin analyzing an organization with biases picked up from other analyst if you’re doing all your own analysis.
  3. Industrial magazines – Nearly each trade encompasses a trade magazine . Trade magazines are better way to find out about the competitor atmosphere in an  specific Industries, and  the necessary trends that have an effect on individual corporations in their several business.
  4. Customer due diligence – The Internet has created  easier to find out about a company from thousands of miles away. online forums for a selected interest, and review sites build it to examine what customers have faith in an organization and its product.
  5. Company news – I favor to use CNBC News to look for news concerning the company’s operations. I also use subscription of email alerts concerning individual corporations to reap necessary data concerning the corporate over time.

Understand the corporate Behind The Stock

I like to begin by initial breaking an organization into parts. Corporations are  Group of individuals (employees), capital (land, buildings, factories, ideas, etc.), inputs (raw materials to be became goods) and their customers.

In any business, one thing goes in, and a product goes out. As associate capitalist, our  goal is to find out  specifically wherever a business fits in associate Industry, and what it will to form money.

If one were to research a company, he or she would wish to grasp some necessary data concerning the company like Employees, Capital Inputs Customer  & company’s profit loss etc. 
Find What’s to know

Investing isn’t concerning knowing everything. nobody will grasp and predict the longer term absolutely. It’s not possible. investment is concerning creating the foremost educated guess doable, when knowing all doable cognoscible data – data that you simply will realistically discover a few company.

Once you break an organization into Parts it becomes such a lot easier to examine however the moving components work, and to search out data that’s price knowing a few business.

Once you break down their workers, you’ll be able to head to the SEBI filings to examine however management is maintaining with its goals.

Once you perceive the capital investments necessary to run the business, you’ll be able to check trade magazines and different sources to search out out what quantity these price, or however necessary they’re to the business.

once you break apart the inputs, you’ll be able to check to examine however the value or quality of those inputs can have an effect on the business.

Finally, once you perceive the client, you’ll be able to get a really, superb plan of however changes in workers, capital, or inputs can influence a company’s future.

The Bottom-line
The most necessary data is found wherever nobody else is wanting. Anyone will look in annual reports. Not simply anyone can do the type of due diligence to make alpha by finding unjust data concerning the “softer side” of the business – the things that goes on the far side finance and into the daily happenings of an organization.

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gopal mangal
gopal mangal
7 years ago

Sir main angel broking me broker/sub broker banna chahta hu….:. Iske liye mujhe kya karna padega…. And isme income kya hoti hai….pls tell me….

My email is [email protected]

Bijay Jain
Bijay Jain
7 years ago

Before investing, doing your own is very important. Every investor should always consider checking the cash flows of a company instead of looking at a good P/E ratio or depending blindly on the profits of a company. It took me a considerable amount of time to identify a handful of stocks out of thousands, which I would feel safe to invest in. Initially I was skeptical, but, thanks to which got me started on the front foot and now I’m fairly good at it myself!

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