Understand how to fundamentally analyze and pick the right stocks and thus become a winner in stock market.

Making Investment decision is both an Art and Science. Art, because one should have the passion and love for investment and science because one has to analyze various data’s on the particular stock selected for investment. Fundamental analysis generally looks into the following points.

  1. The Promoter
  2. Industry
  3. Size of the company
  4. Past Performance
  5. Demand/Supply
  6. Capacity Utilization
  7. Location/Marketing
  8. Promoter Stake
  9. Earning Capacity/Accounting Standards
  10. Distribution Policy
  11. Comparison with peers
  12. Equity
  13. Earnings Per Share(EPS)
  14. Dividend
  15. Bonus
  16. Operating Profit Margin
  17. Net Profit
  18. Price to Earnings(PE ratio)
  19. Book Value

While the above list is not exhaustive one should come across all other pertinent points in an attempt to analyze a stock based on the above.