Stock analysis is used by traders to make buy and sell call. It’s an approach to make informed decisions while investing in stocks. Stock analysis can be categorised into – fundamental analysis and technical analysis. Fundamental analysis is evaluation of data from sources, including financial records, economic reports, company assets, and market share. Analysts typically study the company’s financial statements – balance sheet, income statement, cash flow statement, and footnotes. These statements are made available to the investors in the form of quarterly earnings, disclosures to stock exchanges in compliance with the Securities and Exchange Board of India (Sebi) norms. In fundamental analysis, the analysts particularly check for a company's core income, income from other sources, profitability, guidance, assets and liabilities and debt ratio among other parameters. The other method, i.e. the technical analysis focuses purely on statistical data. It works on two assumptions; one, the stock price reflects the fundamentals. Second, the study of past and present movement in prices can help determine the future price trends. Technical analysis primarily deals with price, volume, demand and supply factors. This method is effective only when supply and demand forces influence the market. However, when outside factors are involved in a price movement, technical analysis may not be successful. More
According to Dipen Sheth of HDFC Securities, one may look at Balkrishna Industries.
Prakash Diwan of Altamount Capital Management recommends buying Escorts with a target of Rs 129.50 and Balkrishna Industries with a target of Rs 341.50.
Dharmesh Kant of Indianivesh Securities advises buying UPL for a target price of Rs 210 and YES Bank for a target price of Rs 330.
SP Tulsian of sptulsian.com is of the view that one may invest in Balkrishna Industries.
AK Prabhakar, Independent Advisor advises buying Bata India for a target price of Rs 1065 and Sundaram Finance for a target price of Rs 650.
Mehraboon Irani of Nirmal Bang Securities feels that VST Tillers Tractors may test Rs 850. "A company at Rs 40 crore cash in the books and earnings per share of at least Rs 80 in the current year the stock has gone up by Rs 180 in the last 10 days," he adds.
Saurabh Mukherjea, Head of Equities of Ambit Capital suggests to prefer Balkrishna Industries and Elgi Equipments. "Elgi Equipments is a Coimbatore based air compressor manufacturer. It has strong balance sheet, strong cash flows and around 15 times earnings with an export franchise in Europe and America," he adds.
Brokerage house Espirito Santo is upbeat on the prospects on the Indian auto ancillary industry and feels it has the potential to overtake China. Espirito is betting on companies with a technological edge, global scale advantage or dominance of a niche.
SP Tulsian, sptulsian.com feels that Balkrishna Industries can move to about Rs 300 in next six month.
Buy Balkrishna Industries, says Parag Doctor, Motilal Oswal Securities.
On CNBC-TV18's in Super Six show, market gurus Hemen Kapadia, CEO of chartpundit.com, Parag Doctor of Motilal Oswal Securities and Rakesh Gandhi, Sr Technical Analyst of LKP place their bets on two stocks each, thus offering investors a variety of options to choose from.