Fundamental Analysis

Key Financial ratios every new investors should know before analysing a business.

So from the last post I hope you have picked your company and the next step is to analyse whether they are fundamentally strong and financially stable. When you analyse a business there are lot of parameters to look for, sometimes it is overwhelming to look at the data that you have collected from their annual reports, rating agencies and other financial sites. So first let’s make that process simple and easy.

Let me explain some of the key financial ratios that compulsorily needs to be looked when analysing a business.

Selecting businesses

How to pick a company of your choice to invest in as a beginner

Before I start I want you to read this:

Even if you start with 1 Lakh, a kid who is starting at the age of 20 and goes on till 70 has a better chance to make it to 1Lakh Crore. The reason for starting early is because of the power of compounding is not as much about the rate but more about the longevity of the rate. I mean 25% is a very high rate but 25% in 5 years is 3 times, in 10 years it is 10 times, in 20 years it is 100 times and in 50 years it is 100,000 times.

– Raamdeo Agrawal, MD & Co-founder, Motilal Oswal


So This is who I’m, This is What I do !

Firstly I would like to thank all the front line warriors who are fighting the Covid-19. As we all know, we are facing unprecedented crisis in the the name of Covid-19 which brought the whole world and the economy to the grinding halt. Again a big thanks to all the health care workers and the government who are doing everything in their power to protect us from these unprecedented times.

This is Who I’m