Stock Investment in India – The Best Comprehensive Guide

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Stock Investment in India

Investment plans are the best way to multiple your assets. People across the globe are now looking for good investment plans which can maximize their money with minimal market risk. However, investment planning is not an instant task to perform. It requires a lot of market research and effort that can gain you maximum benefits. We are here going to take a close look to the stock investment today so that the investment planning can be clear to you.

First question first, how to choose the best stock to plan your investment on:

  • No matter which company you are investing in, make sure that the revenue of the company is consistently good for 5 years at least. IT will help you to understand the reliability of the company. The annual sales growth of the company should be 10% at least.
  • The net profit also ensures the company’s growth and prospect in future years. And this is important for you to know for your investment planning and How to invest. At least 15% of net profit annually is required for the investment.
  • Earning Per Share is another unavoidable factor. It should grow at a rate of 10% for 5 years at least.
  • Price to Book Ratio should be as low as compared to the peer companies which are operating in the same industry.
  • Price to Earnings Ratio should be as low as other companies that are actively dealing in the same industry.
  • You have to check the Debt to Equity Ratio where the dent-free company is required. If not, it should not be more than 0.25.
  • The Beta version of the stocks should not be less than 1. It indicates the share is actually less vulnerable in the market.

Apart from these above-mentioned points, before investing in the stocks, you have to check some other factors as well which consists:

  • Future potential of the company – You have to understand the business goal and their efforts to achieve that. The progress can be determined by the past and present growth.
  • The business model of the company is also important to understand. With an outdated model, a company cannot sustain in the market for long. Keep this in your mind as well.
  • The management group is also important to know. If the company is established and run by someone who doesn’t have knowledge about the very industry and the market, the growth of the company can’t reach the height.
  • The product or service which the company is offering must not have a huge competition with a thousand others. It will limit its possibility of expansion.

Now, when you already know how to choose the best stock to invest in India, you may think it is the right time to start. However, you are still not completely ready. There are numerous stocks available in the market which offer you the profit return in the same way. The options can be really overwhelming for you and here you can be in fix. So that you don’t make any mistake to choose any one of them, here we are sharing some of the best stock information with you.

APL Apollo Tubes Ltd.

This is the largest Electric Resistance Welded steel pipes manufacturing company in India which has warehouses and branch offices in 25 cities across India. The distribution network makes it one of the largest Galvanised Iron pipe manufacturers in India. More than 20 countries across the globe are their export partners.

  • Revenue Growth – 23.43%
  • Price to Earnings Ratio (P/E) – 20.44
  • Net Profit Growth – 20.16%
  • Price to Book Ratio (P/B) – 3.71
  • Earnings per Share (EPS) – Rs. 39.37
  • Return on Equity (ROE) – 19.36%
  • Debt to Equity Ratio – 0.18
  • Beta – 0.85

Asian Paints

Since the year of 1945 Asian Paints is trading in India. It is a Large Cap company that operates in the Paints sector. Right from the manufacturing, distribution, selling of coatings, paints and to other products related to home decor are their specialized areas. It is India’s largest and Asia’s fourth-largest paint company.

  • Net Profit Growth – 12.14%
  • Revenue Growth – 9.68%
  • Earnings per Share (EPS) – Rs. 26.62
  • Return on Equity (ROE) – 27.16%
  • Price to Book Ratio (P/B) – 17.18
  • Price to Earnings Ratio (P/E) – 65.62
  • Debt to Equity Ratio – 0.00
  • Beta – 0.91

Berger Paints

It was 1923 when Burger Paint was established. Being a large-cap company it also operates in the Paints sector. The business dealing is the same as Asian Paints. However, Berger Paints is famous for different types of paints such as industrial paints, house paints, decorative paints and more.

  • Net Profit Growth – 14.51%
  • Revenue Growth – 10.19%
  • Earnings per Share (EPS) – Rs. 4.88
  • Return on Equity (ROE) – 22.78%
  • Price to Book Ratio (P/B) – 18.82
  • Price to Earnings Ratio (P/E) – 86.32
  • Debt to Equity Ratio – 0.10
  • Beta – 0.89

Bajaj Finance

From 1987 Baja Finance is operating in the market in the Finance sector. The Company incorporated various activities providing loan facilities for purchasing car or motorcycle, small business loans, consumer durables, personal loans, etc.

  • Net Profit Growth – 40.14%
  • Earnings per Share (EPS) – Rs. 77.08
  • Revenue Growth – 33.88%
  • Price to Earnings Ratio (P/E) – 48.68
  • Debt to Equity Ratio – 5.19
  • Return on Equity (ROE) – 21.06%
  • Price to Book Ratio (P/B) – 12.25
  • Beta – 1.69

Britannia Industries Limited

Britannia Industries Limited has been in the market since 1945. The Company is involved in the business of Bakery Products. For providing a range of products Britannia is so popular among people. It has the largest portion share in the bakery market.

  • Revenue Growth – 9.84%
  • Earnings per Share (EPS) – Rs. 55.56
  • Net Profit Growth – 24.66%
  • Price to Earnings Ratio (P/E) – 31.86
  • Debt to Equity Ratio – 0.01
  • Return on Equity (ROE) – 37.11%
  • Price to Book Ratio (P/B) – 18.33
  • Beta – 0.81

Minda industries

Minda industries was established in 1992. It has an active part in the Auto Ancillaries sector. The major products it deals in are Switches, Scrap, Lighting Products, Horns, automotive batteries, air brakes, and LED Lights, brake & fuel hoses, clutch, etc. The company has design centers in Japan, Taiwan, and Spain and sales offices in the USA, Vietnam, Europe, and Spain.

  • Net Profit Growth – 117.89%
  • Revenue Growth – 28.20%
  • Price to Earnings Ratio (P/E) – 31.86
  • Earnings per Share (EPS) – Rs. 5.36
  • Debt to Equity Ratio – 0.17
  • Price to Book Ratio (P/B) – 4.36
  • Return on Equity (ROE) – 22.10%
  • Beta – 1.06

Pidilite Industries

Pidilite Industries was established in 1969. It is an Indian-based adhesives manufacturing company that also sells construction chemicals, art materials, and other industrial chemicals. Famous products like Fevicol, Dr.Fixit, Fevikwik,  Cyclo, Roff, Hobby Ideas and Manipal are its offerings.

  • Net Profit Growth – 16.09%
  • Revenue Growth – 10.57%
  • Price to Book Ratio (P/B) – 15.44
  • Earnings per Share (EPS) – Rs. 19.69
  • Debt to Equity Ratio – 0.00
  • Price to Earnings Ratio (P/E) – 68.96
  • Return on Equity (ROE) – 27.10%
  • Beta – 1.02

Titan Company

Titan Company since 1984 is operating in Consumer Durables sector. It is the fifth-largest integrated own brand watch manufacturer across the globe. From the elderly to the youngster, Titan has every type of watch to satisfy its customers of all ages.

  • Net Profit Growth – 13.81%
  • Revenue Growth – 12.60%
  • Price to Earnings Ratio (P/E) – 71.50
  • Earnings per Share (EPS) – Rs. 15.72
  • Price to Book Ratio (P/B) – 16.91
  • Return on Equity (ROE) – 23.93%
  • Debt to Equity Ratio – 0.01
  • Beta – 0.83

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