Stock Investing Made Easy

Investing is always a long-term wealth creation option. To accumulate wealth over a period of time, you may want to build a pool of assets that gives you a decent return to secure your future.

Here, the most important factor is the choice of investment that you need to make. 

The pool of invested assets must be selected so that if one of the assets does not give adequate returns, the other assets give a cushion to your portfolio in that case. Overall, maintaining your target expected future returns. Direct Equity, mutual funds, etc., are some of the options that can help you generate returns to meet your financial goals.

However, to invest your money, you must be well-informed about the company's underlying investment options.

To study these companies, you will need to analyze the company's financials, such as the annual report, the Profit and Loss Statement, the Cash Flow Statement, the Balance Sheet, etc.

The challenge here is to decode these statements and pick up the right parameters to identify & analyse the companies to become part of your portfolio.

To help you pick the right parameters, we have designed a  stock investing course to help you learn stock market investing so you can choose winning stocks and grow your wealth over time.

Stock Investing Made Easy is a self-paced course that will give you the right approach to analyzing stocks. With real-world examples and hands-on exercises, you will gain all the necessary skills to make decisions that align with your goal. 

To learn this course in Hindi, click here: फंडामेंटल एनालिसिस अब हुआ आसान

Please find below the overview of the topics covered under the course - Stock Investing Made Easy:

Section 1: Introduction to the Fundamental Analysis

• You will understand the basic concept of fundamental analysis and the goals behind doing it. 
• Look at the factors that affect the stock prices, such as negative or positive newsflow, liquidity in the company, etc. 
• Explore the 5 mantras of value investing. 

Section 2: Different Approaches to Stock Investing

• You will explore the different approaches to investing using fundamental analysis in detail. We will simplify the concepts for you by comparing top-down and bottom-up approaches to investing. 
• Using examples from the IT sector, you will understand the significance of economic analysis before investing in a company. 
• Understand Porter's Five Forces Analysis, a framework for identifying strong businesses and promising sectors. 
• Look at another analysis technique, SWOT analysis, with practical examples.

Section 3: Learn to Analyze a Company

• You will understand the difference between the qualitative aspects, including corporate governance, management, etc. and quantitative aspects, such as financial ratios. 
• Find an extensive guide on an annual report, covering everything from an introduction to its detailed content. 

Section 4: Learn to Read a Balance Sheet

• You will understand what a balance sheet is by delving into a case study of a made-up entity. This will help you understand how to interpret the data given in a company's balance sheet. 
• Explore both the assets and liabilities side of the balance sheet. 
• Learn how to track a company's balance sheet using the StockEdge app. 

Section 5: Analyzing Financial Statement

• You will look at the different financial statements of a company, such as a Cash Flow Statement and Profit and Loss Statement and how to analyze them to understand a business’s financial condition. 
• Learn how to calculate a company's profit and loss using the various data provided. 
• With the help of a case study on Pidilite Industries, we will explain individually each heading that comes under an income statement.

Section 6: Learn Ratio Analysis

• Efficiency Ratios: You will understand ratios such as Days of Payable, Earnings Per Share (EPS), Days of Inventory, PAT Margin(%), EBITDA Margin(%), EBIT Margin, Book Value per Share, and Working Capital Cycle and analyze them using StockEdge App. 
• Growth Ratios: You will learn about various ratios, including EBITDA Growth, Earnings Per Share Growth (%), Net Profit Growth (%), and Net Sales Growth (%) and track them using StockEdge App. 
• Return Ratios: You will explore ratios such as Return on Equity (ROE), Return on Capital Employed (ROCE), and Return on Assets (ROA) and track them using the StockEdge App.
• Cash Flow Ratios: You will learn and analyze ratios such as Free Cash Flow per Share and Cash Flow per Share with StockEdge App.
• Solvency Ratios: You will learn and analyze the Current Ratio, Interest Coverage Ratio, and Debt-to-Equity Ratio and track them using the StockEdge App.
• Banking Ratios: You will understand various banking ratios such as Net Interest Margin, Yield on Advances, Net Non-Performing Assets (NPA), Operating Income Growth, Interest Expended to Total Funds, Interest Income to Total Funds, etc.
• Valuation Ratios: You will learn to analyze ratios, including Market Cap to Sales Ratio, EV to EBITDA Ratio, Price to Book Value Ratio, etc.

Section 7: Key to Fundamental Analysis

• You will understand how we can use a company's historical financial statements to estimate its current position. 
• Understand how to estimate the five year P/L Statement and Balance Sheet of Pidilite Industries to understand future forecasts. 
• Understand the concept and importance of the historical balance sheet and learn how to estimate the current position from its historical balance sheet. 
• Learn to estimate the quarterly financial data provided by the company and use them to analyze it.