Stock selection criteria - need expert thought

Hi All,

I am planning to start investing in stocks and looking for stock selection criteria. I read many books. But couldn’t come to any concrete conclusion on how to identify good company. So I thought of sharing below and get expert feedback from the group.

  1. Growth rate > 15-20% for last 5-7 years
  2. Cash flow should be +ve
  3. PE should be less than 15 - nice to have
  4. Debt/Equity ratio should be less than 0.3
  5. Net profit Margin should be >10-15%
  6. Promoters stakeholding should be >51%
  7. Prefer dividend paying company
  8. Company should have competetive advantage
  9. Industry should be growing e.g. Consumer/Retail, Finance etc are growing
  10. Stock price should be below intrinsic value - difficult . But there are some companies like Persistent systems which are around their intrinsic value.

Generally I check stock on,moneyworks4me to see details about above. I tried reading annual report of few companies. But not able to get much out of it. So any suggestion to shortlist a stock is welcome.

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I started with learning how to do fundamental analysis of a company watching this playlist.

This is basics of fundamental analysis in Hindi & the guy puts down concepts in extremely simple terms.

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