The Basic Checklist
As promised, I am going to share my checklist below. Well, I have made 7 sections of the checklist out of which I am sharing the 1 st section of my checklist in this post. It’s The Basic Checklist when you start to analyse a Stock. This checklist is more suitable for Mid-Caps/Small-Caps/Micro-Caps as Large-Caps are already a safe bet fundamentally. A basic understanding is required of the Sector that the Stock belongs to. If you have an understanding of how revenue is generated and how companies operate in this sector, it helps you better understand their financials. It is also important to understand if the raw materials for this sector are easily available & if it can replace imports. The basic analysis of the stock starts with its P/E, EPS, P/B & Book Value. I did not quantify a benchmark for these ratios but preferred that EPS & Book Value grew in the last 10 years and P/E is not very high. The next focus was on the Promoter Holding. It is better if the Promo