FUNDAMENTAL ANALYSIS

abhishreshthaa

Abhijeet S
HERE IS ARE SOME INFO ON FUNDAMENTAL ANALYSIS OF COMPANIES CHECK IT OUT ......


FUNDAMENTAL ANALYSIS OF COMPANY:

  • Fundamental analysis of a company yields the intrinsic value.
  • If the intrinsic value of a stock is above the current market price, the investor would purchase the stock.
  • If the intrinsic value of a stock is below the current market price, then the investor would sell the stock.



Researchers have found that stock price changes can be attributed to the following factors:

  • Economy wide Factors : 30-35%
  • Industry Factors : 15-20%
  • Company Factors : 30-35%
  • Other Factors : 15-25%


A commonly advocated procedure of fundamental analysis involves a three-step examination, which calls for :

  • Understanding of the macro economic environment and developments.
  • Analyzing the prospects of the industry to which the company belongs.
  • Assessing the historical and projected performance of the company.


Two approaches are used by investors and security analysts when doing fundamental analysis:

  • Top-down approach
  • Bottom-up approach


ECONOMICAL INDICATORS:

  • Higher agricultural output on the back of the exceptional monsoon; and*
  • Infrastructure-led increase in industrial production, which should aid demand of materials such as cement, steel etc.
  • Demand for the services sector, which will continue to rise on the back of lower interest rates, aiding higher consumption of durables, including commercial vehicles.

IN AUTOMOBILE INDUSTRY:

  • Drivers for CV growth
  • The rise in fuel costs (i.e. diesel prices) is more than offset by the superior efficiency of the newer vehicles, and cheap loans have reduced holding costs and interest expenses
  • 27.8% increase in CV demand this year

Road infrastructure
  • Golden Quadrilateral (Delhi-Kolkata-Chennai-Mumbai-Delhi ).
  • North-South-East-West Corridor (connecting Kashmir to Kanyakumari).
  • Project to connect with motorable all-weather roads each of the country’s 150,000 villages with a population of 500 or more.

:SugarwareZ-147:
 
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