Fundamental TItan

Companies for long term investments based on few of the most crucial fundamental parameters, including ROE, ROCE, Debt/Equity, Promoter Holdings, Pledged Percentage, Profit Growth, PBV, PEG ratio, PE ratio and Intrinsic Value. Together with the above filter, sector analysis must be done to understand the current and near future prospects of the sector. Sectors which are performing better in the current global and domestic economic state must be preferred. An analysis of the underlying indices, like banknifty, NiftyIT, Niftypharma, Niftyauto etc (minimum 3 months data) can give clear indications of the better performing sectors while future prospects of the sector must be researched. Any recent news which is not impacting the fundamentals and long term vision of the company must be ignored. The investment time horizon is at-least 6 months and up to 3 years. If two consecutive quarterly result are bad after the first 6 months, investors may re-review their holdings. If the bad quarterly performance is attributed to global and domestic cues, and not due to any change in internal policies of the company, additional shares must be purchased to decrease the average cost per share, provided all other conditions of selecting the stock are intact. If the performance is at par with your expectation and you do not need any cash, and if all the previously discussed conditions are intact, maintain your holding for as long as possible. Good luck!

by Selva Kumar