DrVijayMalik_ValueGuru_Checklist
Ist Upd - 05Jul2020
#Thread
A small tribute to @drvijaymalik on the occasion of Guru Purnima🙏
#valueinvesting #stocks
#SalesGrowth #OPM #npm
#CurrentRatio #DebtToEquity
#SSGR #MarginOfSafety #MaxPEtoPay #EarningsYield
#FII
#MaithanAlloy
1n
The Final Checklist for Buying Stocks !
Financial Checklist !
Taking Maithan Alloys as Sample Stock !
Tax Payout Shown in 1n (above).
2n
Valuation Checklist !
Earnings Yield > 10Yr G-Sec Yield. Higher the difference better it is.
Max PE to Pay calculated on the basis of Prevailing Current Interest Rate in the Economy (10Yr G-Sec Yield)
3n
Business & Industry Checklist !
10yr Cumulative PAT vs CFO. Ideally both should be similar or CFO may be little higher (Maithan Alloy Example)
Creation of Value for shareholders -
10Yr Increase in Market Cap > 10yr Increase in Retained Earnings (Maithan Alloy Example)
4n
Management Checklist & Other Business Parameters !
Most of this needs to be done manually. Take it as homework🙂
Maithan Alloy FII (1.87%) & Promoter Shareholding(74.99%).
Less FII better it is.
Check Change in Promoter Holding in last 3yrs (insider Buying) in 1n (above)
5n