3 points to consider while analysing companies based on fundamentals
Vivek Karwa, Chief Executive Officer — Vridhi Investment, says “the first thing to look at is how long the company has been in business. That is one important point. And is there any more? For example, when you talk about paints, which company comes to your mind? When you talk about theatres, which company comes to your mind? So there are companies which have extremely high moat and brand recall. Those companies always tend to do better.”
What is fundamental analysis and what should one keep in mind while analyzing companies based on fundamentals?
There is no one fixed formula even in fundamental analysis. There are so many things. And anytime you analyze a company, there are so many revolving parts and you have got to put everything together and then come to a conclusion whether you want to buy or not.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIIM LucknowIIML Chief Operations Officer ProgrammeVisitIIM LucknowIIML Chief Executive Officer ProgrammeVisitFor example, the first thing I would look at is how long the company has been in business. That is one important point. And is there any more? For example, when you talk about paints, which company comes to your mind? When you talk about theatres, which company comes to your mind? So there are companies which have extremely high moat and brand recall. Those companies always tend to do better.
Also, does the company also enjoy a monopoly or certain restrictions from the government side? For example, you simply cannot open a casino or you simply cannot, say, put up a cement plant that easily. There are a lot of entry restrictions. So wherever the company has entry
