Research any stock – with downloadable financial data. Plus market metrics.
View and download data on stock financials, prices, valuations, ownership and much more.
A powerful tool to help you filter stocks using the right metrics and data.
Metrics that we have set to give you readymade shortlists. A great base to start on which you can build further.
We had, in mid-2021, initiated a buy call on a stock that was reinventing itself from a supplier of diesel engines into an EV player. It was an early call we’d made on the EV boom, which appears well-timed as electric 2-wheeler sales jumped from 16,000 units in 2018 to 150,000 units in 2021 to a whopping 615,000 units in 2022!
With the EV 2-wheeler market now clearly segmenting itself, there is more clarity on how competition and market share is shaping up. The EV 2-wheeler industry is also going through regulatory tightening.
There are more theories on what works in stock investing than there are listed stocks. Each one seems to be successful at some point in time. However, there is still no single universally applicable formula. I am still in search of that magic formula. If any of you do find one, please post it in the comments section.
But if there can be said to be two warring camps on the right approach to stock investing, these are usually fundamental analysis and technical analysis. Both have loyal camps of followers who swear that their method works best.
In one of our stock recommendations last year, we analysed a company that was moving from ‘tonnage to technology’. We spoke briefly about the company transforming itself from a manufacturer of forged components to a supplier of products, systems and assemblies to defence and electric vehicles. The stock delivered 27% since our call (index 8.5%) and we retain a buy. In this report we detail further on the above opportunities based on the information that the company shared with analysts last month.
Our Stock research philosophy
With it comes to doing stock research, quality, growth and right price for the business – all matter to us. We also believe that good businesses can spring up in any market cap segment. Therefore, we don’t have defined allocations to large-caps, mid-caps, and small-caps or defined allocations to sectors in our stock recommendations. Here’s how we build Prime Stocks.
- To start with, we consider the entire Nifty 500 basket – given that this covers almost the entire listed market cap, it throws up all available opportunities.
- To this, we apply basic filters to remove the very illiquid stocks so that you’re actually able to invest the amounts you wish to. Our liquidity filter applies regardless of the stock’s market cap.
- Then, we do a further round of elimination to weed out those with very shaky fundamentals – such as the severely loss-making, negative net worth, heavily indebted, and more.
- On this universe, out stock research methodology applies quantitative filters to rank this universe of stocks. This helps set a basic bar on the fundamental metrics that a company needs, to make it to our shortlist.
- Our model considers over 20 different metrics to measure quality and growth alone, besides a series of other metrics to understand stock risks, volatility, and valuations.
- The stock research methodology we have developed measures balance sheet strength, growth in revenue and profitability, as well as the quality of this growth. We combine both short-term and long-term averages to ensure that we’re not overtly influenced by the latest numbers. For example, while we look at revenue or earnings growth, we also look at how strong or stable this growth has been, whether or not it leads to cash flows, whether or not it is real growth. While we look at debt levels, we also look at ability to service interest and whether the debt has been put to good use. While we look at NPAs, we also see what the loan book is like and trends in NPAs.
Stock research deep dive
From the shortlist our model generates, we dig deeper to understand more about each company, its sector, its growth and profit drivers, valuations, and more. This exercise is an entirely qualitative analysis. This quantitative-qualitative blend gives us the ability to assess stocks and opportunities across sectors and market caps. It also removes any potential bias we may have towards particular sectors. It helps us offer a mix of styles. Our ‘buy’ list can and often will feature growth-style stocks, quality stocks, value or contrarian picks, or even dividend plays.
We additionally have a ‘Watchlist’, where we list stocks that we think hold promise, but are not ‘buys’ because we are watching developments. These could be related to valuations or the business. So, not all ‘Watchlist’ stocks will move to ‘Buys’! We also give you alerts on when a stock is overvalued or where the fundamental thesis fails or changes. We issue a ‘Sell’ call at such times.
Stock research doesn’t have to be the domain of only the market savvy. Subscribe to PrimeInvestor and use our recommendations, screeners and rankings to be a top stock research analyst yourself!