Fundamental_Alaysis_Hints

Fundamental Anaysis: Product What the company produces' Market prospects of the product Are there strong entry barriers What is d kind of market size How fast is the market growing' Domestic or foreign market also Who are d competitor in foreign also Is it the sunrise or sunset product' Promoter Who are the promoters' Are they family business or 1st generation promoter' Is there any other venture if yes who are the bankers What is d kind of succession plan tat d promoter has Whether the promoters are technocrat or family business Land and building P & M Margin money for working capital Pre operative expenses / Preliminary expenses Profitability Analysis:- (financial analysis ) Balance sheet lending – size of the balance sheet doesn’t change but given d existence to get the lil bit profit high within the balance sheet (Interest Coverage= EBITD/ Interest) Profitability Ratio Current Ratio Turnover ratio *NPV= -1000+GPn/(1+r)^n*, project is viable when NPV > 0 IIR (Internal rate of return) =* rate of discount where NPV = 0*, if IRR > r then the project is viable As a promoter will only see IRR As a banker he will Compare IRR with banker rate of interest As a share holder u will see the IRR is greater than ur required rate of return As a strategic Investor for calculating intrinsic value u will use WACC Sensitivity Analysis:- Use some parameter differentiation and compare where DSCR is gud fit and see the gud and worst scenario and also see by increasing the return and decrease the cost of material one at a time *Technology part has* to be seen For infrastructure business see whether there licence is valid or not if valid den for how long Mortgage on non trasferabel assets Hyothentication of transferable assets If pleasure of share or not *Interest rate and Repayment Schedule of the principle (Monatorium) a period u hav to pay only interest and after some u hav to start repayment d principle*:- Break Even analysis Pricing: credit rating of that company Conclusion