Fundamental Analysis (FA) is a holistic approach to study a business. When an investor wishes to invest in a business for a long term (say 2 – 5 years) it becomes extremely essential to understand the business from various perspectives. It is critical for an investor to separate the daily short term noise in the stock prices and concentrate on the underlying business performance. Over a long term, the stock prices of a fundamentally strong company tend to appreciate, thereby creating wealth for its investors.
We have many such examples in the Indian market. To name a few, one can think of companies such as Infosys Limited, TCS Limited Page Industries, Eicher Motors, Bosch India, Nestle India, TTK Prestige etc. Each of these companies has delivered on average over 20% compounded annual growth return (CAGR) year on year for over 10 years.
Topics covered in our Fundamental Analysis workshop given below:
- Introductions of Fundamentals Analysis.
- Mindset of an Investors
- Analysis of Annual Report
- Results Analysis
- Cash Flow analysis
- Ratio Analysis
- Investment opportunity (Stock Selection Criteria)