Fundamental analysis of a stock is used to determine the financial and business health of a company. It is always recommended to perform a complete fundamental analysis of the stock before investing if you are planning for a long-term investment.
Here are the six essential steps that you need to perform to analyze the fundamentals of a company in the Indian stock market. They are really simple, yet effective to find fundamentally healthy companies. Here it goes
Step 1: Use the financial ratios for Initial Screening
Step 2: Understand the company
Step 3: Study the financial results of the company
Step 4: Check the Debt and Red Flags
Step 5. Find the company’s competitors
Step 6: Analyze future prospects