How to do step-by-step fundamental analysis

Q&A: Questions & Answers Investing Basics Q&A
1

Hi All,
I am an experienced electrical engineering professional with 25+ years of experience in power plant and oil & gas industry. I am investing in Indian stock market for the last 22 years based on fundamental analysis and research report from Moneycontrol.com and other brokerage firms. I have done “Security Market Analysis” 6 month online course from P.N. Vijay academy, Delhi in 2009 and 3 month’s course “Final Analysis Technique & Equity Research” (FATER) course from XLRI Jamshedpur in 2018. I can read the Balance sheet and P&L statement of the companies from their Annual Report. I devote time for this analysis along with my existing work as electrical engineer. Now, I wish to do equity research on full time basis and I am looking for suitable guide/mentor for doing work.
Can you please suggest suitable options to get more experience for equity research and gain more confidence write my own equity research report?
Have you come across any course which give step-by-step practical experience to write research reports based on fundamental analysis of companies?
How can we use the forum more effectively to achieve this objective? Any comments/suggestions please reply to this message.
Regards,
Shailendra Pal
+91-7338178293
Bengaluru-India

4 Likes
2

use dr. vijay malik site

2 Likes
3

Thank you Jagjit2!!. I heard about Dr. Vijay Malik, but never attended his workshop.

I also see that he is using excel sheet based on the data derived from screener.in website. I also use the similar excel sheet, but find it challenging to calculate the future profits based on qualified assumptions.

2 Likes
4

Check here,

You will be amazed by the quality of analysis available for free by Sir Ismohit Arora(School of Intrinsic Compunding).

2 Likes
5

This is something I follow not necessary its the best way.

  1. Check for red flags in a company by running google searches and also checking the valuepickr thread for any potential red flags like any past legal cases on the company or any shortchanging of minorities.
  2. Understand the business model - You need to understand how does the company generate the revenue (What are the revenue streams - Geographically, segmentally or also product wise etc). What are the costs which a business incurs to bring this revenue. I make a value chain to understand any business where on the left I have supply side and on the right is the demand side.
    Something like this
    image
    image1429×804 121 KB
  3. Industry - Understand how is the industry structure, size and players.
  4. What is the X factor or moat in the business.
  5. Understand the management and how are they (Check management in terms of integrity and competence)
  6. What are the potential risks the biz can face and are you comfortable with those?
  7. Once everything is done ask yourself if this is a business you would like to own if answer is yes you may go ahead and do modelling and valuations.
1 Like