The stock market has always lured investors with the promises of big money, however, generating a profit through equity investments is not easy. It requires a huge amount of discipline, patience, in-depth understanding of the market, and a great deal of research among others.
We all have heard our fair share of stories of someone becoming a multimillionaire or going bankrupt by investing in shares. While the bankruptcy and loss booking stories may turn off most people from the share market there are those who dream of the millions they can make.
This article is for all such dreamers.
New To The Share Market?
Newbies generally buy shares after hearing of a solid share market tip. A tip that promises quick and easy money.
Here’s A Quick Stock Tip For Today (31st May 2018):
(Read the latest share market tips updated on a daily basis)
Bharat Electronics (NSE Code: BEL) - Can be a good investment option at its current market price of Rs.119.
Valuation: Overvalued stock with trailing PE of 17.67x as compare to closed peers.
Reasons to consider: The company posted healthy numbers over last five years. ROE improved to 17.63% as of now from 14.52% in FY13. Slow down in order inflow and shrinking operating margin impacted the company. BEL is India’s one of the largest PSU in defence segment. It is a key beneficiary in defence capax. The company is having intact competitive profile. Stock is also trading at all time low level.
Drivers: BHE would benefit from ramp up of private sector capability (defence segment).Company is also having many large projects in hand with revenue visibility by FY21. Its order book is slated to grow over the next few years because of steady demand for its existing product range, potential orders from high value projects (e.g., tactical communication systems) and growth opportunities in the non-defence/ export segments.
Financial: Revenue of the company increased to Rs 8654 cr in FY17 from Rs 6272 cr in FY13. EBITDA margin expanded to 25.56% in FY17 from 20.53% in FY13. EPS rose to Rs 6.20/share from Rs 3.45/share in FY13.
The above tip provided by Niveza India suggests that you can invest in Ganesha Ecosphere. To understand why you can read the points listed above and get a brief understanding.
Who Provides The Best Share Market Tips?
The best share to buy or multibagger stocks, etc are words thrown around by anyone who knows anything about the share market.
A quick google search would lead you to share market tips being offered by top brokerage firms, investment gurus, online financial portals.
Even financial news channels run several talk shows featuring some eminent investor or fund manager readily offering you advice on what to buy. Heck, even your uncle or next door neighbour would have a share tip or two that promises to make you instant and easy money.
However, the majority of these tips never hit the promised targets and there’s nothing you can do if in case your investment incurs a loss.
Deciding The Best Share Market Tip For You
In the stock market, every step has to be taken with utmost caution as in short term, even good stocks can bring you losses.
Thus you need to understand the two most basic methods used by investors to analyse the profitability of a share:
- Fundamental Analysis
This evaluation method involves studying all aspects of the company right from the balance sheet, leadership team, employees etc. And then comparing it with current/upcoming market conditions, government regulations, etc, to determine the profitability of the stock.
Read More : Fundamental Analysis
- Technical Analysis
This trading tool is employed by share market professionals to evaluate securities and identify trading opportunities by analyzing statistics gathered from trading activity, such as price movement and volume. Unlike fundamental analysis which attempts to evaluate a share's intrinsic value, technical analysts focus on charts of price movement and various analytical tools to evaluate a security's strength or weakness.
Read More: Technical Analysis
Huge Profits Come At A Cost
You’re most likely to come across share market tips based on technical analysis as it is very easily done in comparison to fundamental analysis.
Remember all those bankruptcy and loss making stories I was talking about at the start? Well investors who are into intraday trading, F&O and other such venues of the share market are the one’s who mostly lose money. And the one thing common between all of them is (no prizes for guessing the right answer) - technical analysis.
A fundamentally strong share would almost always return a profit even in case the entire stock market crashes. This in combination with a disciplined personal finance strategy has the potential to generate a lot of wealth. A LOT of WEALTH!
This Is A Lot Of Hardwork, Just Show Me The Money!
Niveza India provides free share market tips. They analyse the top trending share tips and give you a fair fundamental analysis of the tips so that you can make a wise investment decision. In fact, they also provide answers to any share market-related questions that you may have.