What is Profit&Loss (P&L) Statement ?

Definition : Also known as Income statement, is a financial statement which shows expenses and revenue of a company during a particular period, usually a fiscal quarter or year.
Read : What Is Balance Sheet ?
Income Statement helps to convey the status of a company i.e. Company is making profit or suffering losses. It is very important to read Income Statement of a company before investing, both of recent and past years.
Note : Revenue : Total amount received from sales of goods and services. Expenses : Total amount spend in producing final product or service.
Structure of P&L Statement  Income Statement is divided into Five main section - Net sales, Cost of Goods Sold, Gross Margin, Operating Expenses and Net Profit Before & After Income Tax (Or Net Loss in case of Loss).
Net Sales : It is the sum of Gross sales excluding its returns, allowances and discounts.Cost Of Goods Sold : Amount of money used to produce the final product. For example cost of inventory, merchandise purchased…

Use These Eight Steps For Easy And Time Saving Stock Analysis

Stock Analysis is a very important part of investing. Searching a value stock is  not a easy job, it takes lots of effort and time to find a stock with good fundamentals and that can give good future gains. Analysis is used to  predict future performance of a stock by properly analysing its present and historical data. We always need to aware of changes made by the companies, and also change in rules and regulations by government. 

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Stock analysis is very important if you are planning for long-term investment as you need to go through every fundamentals and accounting of a company including its management and future plans before investing. Every successful investor always suggest to analyse a stock both technically and fundamentally before investing, this will help you to reduce risk factor and increases greater probability of gaining good future gains. Analysis is the key of Intelligent Investor.

There are basically two types of Stock analysis - Technical analysis and Fundamental Analysis :

Technical analysis - Predicting future price movement of a stock based on its past price movement.

Fundamental analysis - Examining Stock’s true value. Focuses on company’s financial data, accounting terms and management data.

As Stock Analysis takes lots of effort and time, i came up with few tips that can help you to save your plenty of time and effort. Everyone know how to use google to find your desired result and here i will give you some tips using which you can easily and efficiently cover your stock analysis and able to choose a valuable stock to invest.

 Use the given search query following Name of the Stock or Company ( or stock symbol) :  

1. Share Price : Type name of a company following ‘share price’ in google search and you will get current price of that stock in graphs including the price movement of that stock from the beginning it registered on stock exchange. You can track price for different time period like 3 months, 6 months, 5 years, etc. 

Example : Reliance ind. Share price

Also provides information like percentage of rise and fall in price of a particular stock. You can track price movement of a stock from first day it registers on stock exchange till today (as you can see in image). You will also see other links below like Moneycontrol and Economictimes. You can visit these the links for detailed information, they are very helpful to gain financial information of a stock and you can also able to track variety of information like Financial ratios, sales and revenue, depreciation, tax, bid and offer price , etc using Moneycontrol and Economictimes.

2. Wiki : Type name of a company following ‘wiki’ in google search and you will get the Wikipedia link of that company, where you will able to find detailed information related to that company including net worth, key members, stock symbol, history of establishment, etc. Before investing in a company you must need to understand that company. If Wikipedia article is not available for the company you searched about, which is a very rare case, even in that case this search query will results in related links where you can find the similar information like of Wikipedia, where you will able to find details of a company. 

Example : You can see in below image, top link will redirect you to Wikipedia page.

3. Future Plans and Goals : Type name of a company following ‘future plans and goals’ in google search. This search query will result in various links which will provide details of company’s future plans to increase their business and profitability. Also various reviews of how will that stock perform in coming days and in long-term. This is very helpful to know perception of different people and firms about a particular stock as it will help you to know some crucial points. 

Example :

4. News : Type name of a company following ‘news’ in google search. This search query will help you to find past and latest news of a company like New product launch, Steps taken , change in Key members like CEO and chairman. Also able to find negative aspects of that company like Income tax theft, cases against the company and its member, etc. So always check News headlines of that company in which you are planning to invest. You can get latest financial news from different sources such as BloombergQuint.com/Business, Newspapers like Economic times of India, Financial express, Mint, etc., Google alerts - google.com/alert(visit this link and type the name of the company in search bar and you will get regular updates of that company), Apps like Moneycontrol, ET Markets, Business Insider, etc.

Example :

5. Red Herring Prospects : Type  name of a stock following ‘red herring prospectus’ in google search. You will find a link of red herring prospectus of that stock. Companies need to submit their red herring prospectus for stock exchange registration. Red herring prospectus is very helpful as contains detailed information of a company.

Check Out : Top 15 Penny Stocks With Good Fundamentals

Red herring prospectus contains: 
  • Business details
  • Capital structure
  • Risk Factor
  • Startegies
  • Promotion and management
  • Past financial data
Reading Red herring prospectus is good way to find a valuable stock and top investors always suggest to take good look at company’s Red Herring Prospectus.

Example: You will get red herring prospectus of desired company in .pdf format (see in below image)

6. Glassdoor.co.in : Visit this website and type desired company and then click on 'company reviews'. This website will provide you reviews and ratings of companies worldwide. Helps you to know the relation between a  company and its employee.  Good relation between a company and its workers helps to generate goodwill for that company and higher the goodwill more valuable a company is. So it is very important to gather such information about a company. This website will help you to find job vacancies in nearest cities. 

Example : 

Check Out : Top 5 Tycoon Of Wall Street

7. Management : Type name of a company following ‘management’ in google search bar. You will able find information of company’s top management who run and control the entire business and takes part in every decision making for growth and development of the company For e.g. Chairman, Director, COO, CEO, Marketing Head, Production Head, etc. As such positions holders run the business, it is very important to know about them also as how efficient they are using capital, and also how they react during market downturn. Most successful investors like warren buffet always gives top priority to company’s management as if a company has excellent management then the business will surely grow.

Example : 

8. Marketsmojo.com : Visit this website to find Research Reports on every company. Here you will able to find various research reports on every stock written by different experience holders. Always keep  in mind do not focus on stock they recommend, always try to gain knowledge and invest with proper analysis and take decision wisely.

Example : 

9. Promoter's Shareholding : Type  name of a stock following ‘promoters shareholding’ in google search. A stock promoter is a firm or person who promotes a stock, seeking to include potential investors to buy it. this search result will help you to know percentage of shares held by the promoters. it is very important to know promoter's shareholding as they represent the status of a stock. If promoters hold high percentage of shares it show good signal to invest in that company. If promoter's shareholding is very less there is possibility of future downturn in that company or company is involved in some fraud. So always try to know reasons behind all this.

Example : Visit top links for more accurate results. 


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