Fundamentally Strong stocks

Fundamental analysis with 15 parameters I. PE < Industry PE (PE value should be less than industry PE) II. PEG <1 (Price to Earnings Growth should be less than 1) III. RoCE – refer the recommended value from step 2 IV. RoE – refer the recommended value from step 2 V. Debt / Equity < 1 VI. Price /Book value < 1 VII. Last 3 years sales growth – should be positive and in double digit VIII. Last 3 years profit growth – should be positive and in double digit IX. Last quarter sales growth – should be positive X. Last quarter profit growth – should be positive XI. EV/EBITDA < 15 (recommended but again inference varies and find out from step 2) XII. OPM > 15% (recommended but again inference varies and find out from step 2) XIII. Intrinsic Value (IV) – If the price is < IV, then the stock is undervalued and This means that the market is pricing the stock lower than what is believed to be its true worth, based on fundamental analysis. Investors often view undervalued stocks as opportunities to buy, expecting that the price will eventually rise to reflect the intrinsic value, leading to potential gains. XIV. FII holdings – MUST XV. DII holdings – MUST XVI. Last 3 years cash flow – should be positive

by Ashishrathi