How do I Analyse Stocks? — Investment Masterclass

[00:00:00] Speaker 1: क्या तुम ने कभी किसी से प्यार किया क्या क्या तुमने कभी किसी को दिल दिया क्या तुमने कभी स्टॉक मार्केट में इंवेस्ट किया क्या तुमने कभी किसी कंपोनी को अनिलाइस किया क्या वे ने भी किया [00:00:30] Speaker 2: कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो कर दो क I need to analyze this further but till date I have never disclosed this on my YouTube channel that how do I do a further analysis of that stock and today exactly that is what we are going to discuss right but what are the five key points that we are going to discuss in today's video these are number one we are going to talk about how can you get latest updates about the stocks which are there in your portfolio number two we are going to talk about how to get key information about the company number three we are going to try and find out how to pick up undervalued stocks we are also going to talk about how to start analyzing stocks for a beginner and very very important and one of the most interesting points how to find and find turn around stock stories wait wait wait before we start with the first feature I am sure you all are hungry people hungry for knowledge and you would want to learn more okay in Marathi I can also say use it little bit different word how wrote how wrote for knowledge okay so if you are interested to know more and get answers with detailed analysis I am going to give you a bonus feature at the end of this video and it is going to answer the big question as to why ITC stock is falling so stay on tuned till the end of the video I am sure you are going to learn a lot about detailed analysis of companies all right now let us understand how do you get updates about the stocks in your portfolio now how will this website understand which stocks are there in your portfolio for that what you have to do is you have to create a watch list how do you create a watch list on the right hand corner you can see your profile name just hover your mouse over that and here you will see the option of watch list now can you create only one watch list no you can create multiple watch lists as well okay but what happens is that whenever you add few stocks to your watch list any update what could be the update update can be about the quarterly result update can be about a credit rating report which has come up update can be regarding insider trading all these updates will directly flash up where will they flash up in two places number one you will get this on the home screen as well as you will also get an email notification for the same so you might be wondering that oh are these stocks which are there in Rachana's portfolio no this is my dummy account and this is my dummy watch list okay so if you want to add another watch list can you do that yes just click on add another watch list just give a name here and just hit save okay now question is how many companies can you have in your watch list so if you have a free account of with screener you still can have 50 stocks in your watch list i think that's a very big number and if you have the paid version of this specific site then you have an opportunity to add up to 1000 stocks in your watch list but i think that's that's a very big number even 50 is a very big number i guess so right so this is done fair enough but then will i check my email every time no if i'm working i should get a push notification some important news has come regarding the stock in my portfolio how do i enable that for that again there is a very good feature again hover around your profile name hit settings and once you click settings here you see something like a push notification click on that and just here you go you have something as a button which says enable push notifications i think this will help you to get real time updates about the stocks in your portfolio right what else can you get on the home page as i mentioned this is the watch list update but wait as i mentioned you can create multiple watch lists so assume you have three watch lists then will this entire news feed contain stocks information about all three watch lists no whichever is your primary watch list only updates about those stocks will appear in your home screen field okay then you have two more things which are these two one is news which are sorry new quarterly results if you click here on new quarterly results up to last 50 57 uh companies quarterly results you will be able to see on this home page on this screen right so you can just analyze which companies have done better as compared to the previous quarter as well as previous year because here you can see it's as good as a qoq as as well as yoy all comparisons are given here the last one is new annual reports if any new annual reports have come up you can easily check it out here so i think all in all the home page itself gives a lot of handy information now let's move on to the second point as to how can you get key information about any company right so for that what you have to do you have to search for any company first so assume that i want to search more about britannia industries okay again this is not a stock recommendation i'm just telling you how to get information about that a very interesting feature i found in this home page was that on the right hand side you can get a lot of information about the company so for example what i do is just click this uh show more kind of a thing here you can see about the company so it says that britannia industries is one of the india's leading food companies with a hundred years of legacy and annual revenues in excess of 9 000 crores okay you also get to know about their major products which are these what are the major brands that they have right then there is again a very interesting feature which talks about the key points now what is this key points in short quickly i'll tell you what is this this is like a wikipedia of that company okay now why i'm calling this as wikipedia anyone can edit it so here you can see edit option okay so you just have to click on edit if you feel that i want to write something more about this company you can you can write it here and then at the end you can say save changes but very important these submissions are moderated so you can't write anything okay and it will start showing up on the website no once you give your base reference points here you also have to add the url from where you got the information then the owners or the you know moderators of screener.in will check whether this information is relevant or not and then they will give it a green signal then it will start appearing here so if you just click here on key points what key points can you get so first of all key point is it's a part of wadia's group a renowned name second it's a market leader in biscuit segment 90 percent of the revenues is coming from this segment it also talks about britannia bread companies one of the largest player in organized bread market then if i talk about dairy products how much revenue is the company is generating from this so all the key points you can imagine are you can get at one shot one very nice thing i found about this company they followed the 80 20 growth strategy you can read this it's an amazing read okay so anyway so this is about how to get about basic information about the company now if i want to talk about the left hand side of the screen here you can see three main points now what are these three if i click here then i will get directed to the home screen of britannia.co.in so this is like i'm getting redirected to the company's own website so if i want to find out some more information okay anyways so this i found through their website second one you can see here is bsc karlink now what is this bsc karlink here it will redirect you to bsc websites britannia's page okay again i'm closing this if i want to check something on nsc again click i'll go to nsc's britannia's page so i think all information just at fingertips it's very easy to get now just if i scroll down a little bit what do i get i get almost nine ratios about the company okay now if you say that okay all these are here but if i want to add one more so for example debt to equity ratio is not here can you add a ratio here yes directly add it up so just write type out let us say debt to equity it will start showing up okay can i cancel this also yes i can cancel this i can go to edit ratios for that when i click on edit ratios i can just say close that ratio will be gone easy enough so i think this is the way how you can get some basic information about the company but if you want to know more about this very interesting section just check out the next part of the video now let's come to again a very interesting point is how can you find out undervalued stocks okay is this the only way to find it answer is no this is just one of the ways to find it okay so let's understand what all can you see in the next part of the website okay so i hope till here it is okay we have just gone to britannia industries homepage this is what we saw in the first part of the page then i'm just scrolling down this is where you can see a basic graph about the company's share price if you see the default setting is one year i can take it to three years five years max whatever okay now if you see uh let me just take back to one year only now what all things can you see actually on this graph here you can see price 50 dma 200 dma and volume uh if you remember i have also talked about in dot trading view which is one of the websites which is corely based for technical analysis so there you will get a lot of price points this is corely for fundamental analysis but few price points or few features of technical analysis are included here so 50 dma 200 dma what is the significance 200 dma is like a long term average 50 dma is like a short term average and you can see where the price is right now so here you can see britannia share price is just about to cut the 50 and 200 dma price from below looks like a bullish sign as per technical analysis one of the indicators okay you can also see the volume volume is how many shares were traded this last point is about the volumes okay what else can you see here in volume so if i just hover around this here you can see that you can see volume is 1644k so 1644 000 uh shares were traded during the day out of that you can see d is 69 percent now what is that d is delivery percentage out of number of shares that exchanged hands how many were delivery based not intraday okay higher the delivery percentage it shows better confidence in the investors okay so delivery percentage is 69 percent so this is the first base thing many people already know about this but now comes the interesting part now the next one is p ratio okay just have a look at this chart very carefully it is going to tell you tell us a lot of information here i prefer to always click on max okay now what does this tell me okay pay 100 attention this bar graphs uh light blue color bar graphs they will show you how much is the eps of the company if you see here on the left hand axis you can see eps here you can see it's continuously growing since almost 2012 14 say it's continuously growing eps okay now what is this this line chart which is going zigzag what is that that is pe pe ratio okay now you can see pe is how much here you can see in 18 it was almost at the peak point as if i consider last few years and since then it has been continuously decreasing till the latest level that i can see is almost about 44 okay so what now what can i see here interesting point eps is continuously increasing but pe is continuously decreasing it means that the denominator pe price upon earning earning is continuously increasing denominator is increasing that is why pe is decreasing okay simple mathematics denominator is going high so that is why pe is decreasing so can i say that here the price the price at the amount at which i'm getting that price that share is comparatively lower this i feel it's comparatively cheaper right now okay is there any other thing which can prove this yes here that dotted line here it is more visible this dotted line shows us what is the median pe okay this is also given here median pe is 44 now you can see that the stock's current pe is almost close to the median p okay so i hope you have understood that currently it seems to be undervalued based on which parameter based on pe parameter i hope you have clearly understood this if i want to give you a better comparison then you will get this striking difference okay comparison can be of its peer which is the peer of nestle i i give you the answer share it's okay which is a peer of britannia it's nestle right so i'll just click on this and here i again go to pe ratio right and again what do i choose max whoa again for this company you can see the earnings since 16 have gone up very nicely here you can see there's a fall in eps we'll discuss that in the next part and from here it is continuously increasing okay but what about the p p is also continuously increasing okay what is the latest p it's 79.5 what is the median p 45 okay so current p is way above the median p so can i say right now based on this parameter does it seem to be a bit overpriced answer is yes i hope this point is clear right moving on to another very interesting point which is sales and margins okay again let me take you back to britannia now i've taken the correct name okay so getting you back to britannia and i am again going to click on sales and margins so if i click here sales and margins here you can see what a fantastic performance guys this is 2006 from 2006 how can a company show such amazing results i'm checking those purple color bar graphs okay continuously rising what are these purple color bar graphs these are quarterly sales so quarter on quarter on an average you can see that company is performing very well okay now what are these horizontal lines the the maroonish color line or pinkish color line i'm not that good at colors you can understand my feelings okay uh animation team please highlight this properly okay so this pink or whatever color is gross profit margin okay operating profit margin you can also remove untick so that the clutter is less and then is the net profit margin so you can see that gross profit margin is also pretty much constant right on top almost 40 percent and net profit margin is somewhere around 10 to 12 percent okay now if i want to compare this sales amazing sales increasing sales continuously of britannia with nestle now okay let's see how we can see the sales of its peer so i clicked on nestle what am i going to do sales and margin again max whoa wait the sale was increasing but there was a big drop here which year is this 2016. i want you all to tell me in the comment section what happened exactly in 2016 that it saw a big drop in the sales ideally if you think a little bit hard you should be in a position to easily get this okay let me see who can give the correct answer why there was a drop in nestle sale but again balance things are same i hope you have understood how to find out undervalued companies based on these graphs based especially on pe and median pe well now let's understand how as a beginner one can start and analyzing these companies okay in the initial phases you might not even be aware about the various terms like what what these are what they really mean so for that there is a very simple section available again in this website so i'll show you some other other company i have been talking about britannia and nestle for quite some time now i'll show you one company which is known as alkyl amines and few pro investor members who are watching this video they are going to be like yes we already know about this company right okay anyways alkyl amines if i just scroll down a little bit okay so how much parts have we done we are done with this home home page part the very base part then we talked about this graph and now we are coming down to the third part in the home page home screen of the company page right whoa if you see here that it's filled up with pros what are the pros it says company has reduced debt good sign see it's written in normal english second one is company is almost a debt free so one is reducing debt and right now it's almost debt free company is expected to give good quarterly results next one is company has delivered good profit growth now you will understand that actually this they are saying that good profit growth of almost 42.76 CAGR okay so on an average the profits are exp are growing at 40 plus percentage next one is ROE good ROE track record three years ROE is 39% and also median sales growth for last 10 years so on an average 10 years sales growth has been 20% plus okay 21.93% so this is what i think as an absolute beginner what can you do just go on reading pros of various companies and see if you can understand the meaning of these and then slowly we'll try to understand that oh reduced debt will never come in cons reduced debt will always come in pros okay so this is how as a beginner you can just start getting the feel of how to analyze various companies well now let's move on to another very interesting section first we'll understand what all is given in the quarterly results screen okay and then an amazing interesting part is going to come up so wait just few few few more minutes right so what i'm going to do again let me show you some different stock uh let's say i'm i'm talking about share india security is limited okay now you know what this first is like the basic information that wikivala thing i told you the next is about the graph i told you next one is about pros and cons here comparison right then next one comes up is quarterly results okay now if you see here what all can you see here your view standalone i can click if i click on view standalone then there's a toggle for view consolidated okay so i'm i'm sure everyone knows there is there are two things one is standalone one is consolidated okay standalone is only the company consolidated will have that company plus associates plus subsidiaries plus jvs all put together okay so generally whatever is more important will come up as a default okay and then you will have to just click on either view standalone or view consolidated as a toggle button right what else can you see here then you can see that there are certain basic points like sales expenses operating profit which is a very important parameter i always check it how much is the core how much profit they are able to generate from core operations right then you also have opm percentage operating profit margin percentage then few more points and i think one more important point here is pbt profit before tax okay also towards the end you you get to see their pat profit after tax as well as eps okay earnings per share an amazing feature again here you can see is raw pdf okay sometimes what happens is that when i'm doing the analysis of a company i get confused what is this figure i want to know about this figure in detail then i'll again have to go to company's website and see where is the quarterly results nothing i'll not be required to do anything just here you can see this gets uh clickable now i click on this these are the quarterly results of that company it's so much handy right so okay let's get back to our discussion wherein we were talking about quarterly numbers so i hope this part is clear till here what all we can get on the home screen for quarterly results if you click on this plus sign you can see how much is yoy sales growth as well even if you click on expenses two very important points you'll see here how much is the material cost percentage and how much is the employee cost percentage right so i hope these basic points are absolutely clear now let's try and analyze how has been the journey of this company okay now if you see sales started with 35 crores okay here you can see rupees in crores from 35 crores da da da da da da till september 20 it it was 100 crores december 20 105 crores and march 21 191 crores so in one quarter there has been a jump from 105 crores to 191 crores wait next if you check out their operating profit also from one in december 18 1 crore in december 18 to 13 crore in december 19 to 32 crores in december 20 to 56 crores in march 21 again a jump from 32 crores to 56 crores in the latest quarter now if even if you check pbt profit before tax it's a shade more than double now the big question here is that wow nice now if you want to go into more depth than what just check this pdf then you'll be able to understand few more analysis points right but the question is ma'am how did you find this we'll have to check out all the companies now so for example just quickly i'll tell you if i check for britannia i'm going to just click on britannia scroll down here too you will get again same thing but now i don't see a big jump here from 3166 it is 31631 so will i have to check all companies and then find out that company which showed a big jump is there any shortcut yes there is a shortcut but for that you have to wait up till the next section of the video let's try and understand whether there is any shortcut everyone loves shortcut because you know there are 5000 plus companies which are listed on bombay stock exchange how can i get let's say just 150 companies just 200 companies which fit into few of my criterias now what can be a criteria you remember i was talking about a turnaround story identification that let's say the company has been showing its quarterly results back to back decent enough numbers but there is a big jump in the latest quarter out of 5000 companies how am i going to search these companies is there any shortcut answer is yes how to do that so for that let me take you to this part which is known as screens okay now in screens you can create your own screen as well okay so let let me say i'm going to create a new screen what do you have to see that qoq quarter on quarter sales growth so here if you're on the right hand side you can also see the description what is the meaning of qoq sales it says that quarter on quarter sales growth as per latest quarterly result this sales growth i want more than let us say let us say i want the sales growth more than 40 percent okay so in simple as a simple example let's say december quarter sale was 100 this quarter sale has to be more than 140 because i'm saying sales growth has to be more than 40 percent okay here you can see value in percentage is already given so i just have to type of 40 and okay one more thing qoq qoq let us say profit growth okay here again you can see profit growth as per latest quarterly results is how much greater than let us say 30 percent okay once i do this i just have to tick check this box show only those companies where recent quarter result is available and then i say run this query now once i run this there are totally only 80 companies out of those 5000 plus companies which are fitting into this specific filter and here you can see the second one was share india securities right now every time we'll have to keep on typing this out no is there any solution yes what is that save this query okay so i just hit save this query and here what what can i say assume that quarterly magic numbers okay quarterly magic numbers no part one part two full stop okay that that's my screen name here i can give a description of my screen so what did i what did i say my quarterly sales growth is uh more than 40 percent and my quarterly profit growth was greater than how much quarterly profit growth was greater than 40 percent was greater than 30 percent so this is just a description for the viewers to understand or for me to understand what was the entire screen about okay make this query public or private so here uh the there is an option to be selfish or to be generous so if i uncheck this this queries this screen is available only for me but if i want to be a bit generous i can click this and i can make this query public then i say save query okay once i save this it will be there in the screens only my screens no this is made public now your question where can we find the screen ready made link is there in the description okay you can check you can just see a description of quarterly magic numbers you click on that it will be available to you okay one more very interesting thing is this feature i just love this get updates by email now what is this meaning okay so i ran this query i felt nice wow i've done some analysis today okay three days later one company announces the results and that result fit into this query of mine that results are falling into that category of 40 growth and 30 growth will i do this every day no if i check this get updates by email then automatically it says alerts activated for quarterly magic numbers so the moment any company fits into this criteria i'm going to get an email amazing point number one and second point is much more amazing what is that this entire thing is available free of cost i think i have been talking about this website for so much time on my channel why because in marathi we always say this okay so if i'm getting so much free of cost why not make full use of this and try and become a better analyst of stocks yeh dil maange more isn't it so here comes your bonus point which is going to answer the most important question which is which is which is why itc is falling i think this stock has become the memer's most favorite stock in fact in one of my recent whatsapp group i got this amazing message that can we treat itc share as an immovable property so i think people who are itc shareholders can very well correlate to this okay thankfully i don't own even one stock right now okay so what is the reason why it is falling continuously or why it is not showing a nice growth that can be seen very beautifully in one of the features on this website so now what i'm doing i'm just scrolling and after peer comparison after quarterly results comes the pndl okay pndl in detail i'll talk about if you want to know more about there are so many points more left in this website if you want episode 2 of this do let me know in the comment section i'll be happy to make episode 2 master class on how to analyze companies in a better way in a further way right so coming right now to this part which is the product segment part just one small point here that this feature is a paid feature okay but then i feel that i do have a paid subscription for this website if you want to have a paid subscription for this website the link is there in the description i feel that if i'm getting so many things free of cost then i must also explore the paid version the paid feature as well if i feel it is worth it why not subscribe to it okay so what we are going to do i just clicked on view segment now here the amazing feature is that you can see segment wise now it's not only total sale sale from various segments sale from fmcg cigarettes is how much sale from agribusiness is how much sale from paperboard is how much from hotels is how much okay all in detail you can get so here you can see which is the highest segment or i can say which is the segment which is generating the highest revenue that's cigarettes right here you can see which is the segment which is generating the lowest lowest revenue right now it is hotels it's just 664 crores whereas if you're talking about sales is 22 000 crore plus okay that's a big number how much is the growth in this because this is the most highest revenue generating product line okay ideally the growth should be good then it's going to be better for the company now i click on this growth here you can see it's a minus five percent growth and if you see baki like others agribusiness and and all that is showing positive growth is it a problem yes any other problem that we can identify now let's go down to profit before interest and tax okay first let's come to which segment is contributing highest profit again fmcg cigarettes it's contributing 13 500 crores to the profitability which is the lowest lowest again i can say is others okay even agribusiness is just 918 crores now again ideally if this is the segment which is giving highest uh amount of profit ideally growth should be good then it is going to sustain nicely so let's click on growth percentage minus 15 percent very bad correct i hope you have understood that if a specific segment which is giving me the highest profitability if it is showing a d growth minus growth is it going to be good for the company no not at all few more important points if you can if you just see i'm scrolling down again um amount wise and also roc percentage wise if i just go on how much capital is employed where capital wise one of the lowest capital is employed in cigarettes and if you see roc percentage now this is the highest 513 percent roc but this is the segment which is showing a d growth this is hardcore fundamental analysis you have to go dig down deep to understand the answers to various questions so again i'm repeating this is the one paid feature there are also few more paid features of the on this website as well but if you want to check this out link is again there in the description box so i hope you have enjoyed this amazing video which talked about in-depth analysis this is like classic example of fundamental analysis using various features which are there on screener.in if you want another video wherein i cover the p and l in depth wherein i cover the balance sheet in depth wherein i talk about more and more screens which are available on this website do let me know in the comment section if you want an episode two on this if you have liked this video please don't forget to share it with with your friends and family members till then take care Jai Hind and bye bye