In the post, I am sharing my watchlist of the Indian Stock Market. These are stocks which my give consistent compounding returns and these are great in companies (as per my analysis) in their respective industry. In the below which gets updated every time whenever I made changes in my watchlist. Below are the parameters which I would like to elaborate:
- CMP-Current Market Price
- Day Change % - Change in % in the stock price as compared to last closing
- My Affordability/Buy Zone %- It is based on formula which is calculating that how much affordable a stock price is at the CMP; it calculates the average of 52 Week High/Low Avg and have a margin of safety of 15%
- Current PE Ratio- It is the price to earnings (last 4 quarter) ratio
- 5 Year Avg PE - Average of 5 years PE
- PE Discounting- It is indicating that how much % up/down the current PE as compared to 5 years avg PE
- 52 Week High/Low Avg.- Average of 52W high and 52W low price of the stock, it indicates the range
- Approx. Fair Value- 52 Week High/Low Avg- 15%
Note:
- This analysis must be used to know the when to accumulate, but this metric must not be used to choose to the stock to put into the portfolio.
- To include a stock in the portfolio you must have done your own research as in case of fraud/scam/price manipulation these all parameters will get fail.
- Stock price may not refresh in real time, sometime 10-15 min delay is expected.
- I prefer companies which have ROCE above 20% and for banks or AMC return on Asset more than 2%.
- For consistent compounding a good time frame is 7-10 years.
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