How to identify Bad Stocks | Stock you should Avoid - Lesson 6 | बुरे शेयर्स कैसे पहचानें?
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- เผยแพร่เมื่อ 21 ส.ค. 2024
- In this video of Stock Market Lesson with Pranjal, we will discuss the ways to identify bad stocks and how to intelligently figure out if the company is worth investing in or not, regardless of the financial statements published by the company. This video on fundamental analysis of stocks will help you pick great stocks for your portfolio. Thank you for your love for this series on stock market basics for beginners in Hindi
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I'm an Engineer never thought that I could make my mind to share market but loved your classes
Thankyou! Keep learning!
Yes sir I saw to times then understood finally Tysm for that 😇🙏
@@pranjalkamra sir while explaining the effect of rights issue, u assumed the earnings of co. to be constant post the issue. However, co. has raised additional capital over which it will generate return. So that needs to be factored in!
@@pranjalkamra If the Rights are issued at discount, then you can sell them at market price after purchase and bag the discount given to you. Isn't that a good deal??? Please respond if there is a flaw in my theory. Ty.
@@romilpatel3083 right issue only for those who are existing share holder of the company
I am a working professional and all I used to think that the share market is not my cup of tea but after watching your videos and learning from your stock market classes with PK playlist, I started investing and feel comfortable while doing it, Thank you so much for sharing your knowledge :-)
Great to hear!
इस डिप्रेशन के मौसम में एक hope मिल रही है.....जो फ्यूचर अच्छा होने की संभावना दर्शा रही है......आप ऐसे ही लगे रहिए....
I'm pursuing engineering sir but never thought of studying share market these days. Thank you so much, sir, for making these tutorials for beginners.
hey brother, even i want to start learning, where should i start from??
@@adityabeniwal5736 1st episode to 9th one episode where you learn everything
Thanks sir ...
I just passed my 12th. Your classes help me a lot and I am thankful that because of you I am starting my financial investment early and ahead of my friends 🙏
My friend who is a doc recommended me ( who is a mech engg ) to invest in stocks but I had no idea about it , he made me understand few concepts but I wasn't convinced but after watching ur videos I m not only having good knowledge but also gaining confidence to go for trading kinda . Thanks for ur gr8 work . I would recommend my friends to do give it a try at ur videos.👍
I am just 15 and i understood your lecture very nicely, your explanation is superb. Thank you sir
Hello Sir due to current lockdown I wanted to utilise my time fruitfully ,acquire a new skill and coincidentally stumbled upon your videos , I always used to think finance and shares were like Greek and Latin to me ,but the way you present your videos and simplify each topic with examples is highly commendable ,kudos to you and your team at finology ,YOU ARE THE WARREN BUFFET OF INDIA,AND FINOLOGY TICKER WILL BE LIKE GOOGLE FOR SHARES IN THE FUTURE,I am very impressed by your straightforward, honest ,informative advices and looking forward to finish this series and enrol for value investing course in your academy ,I am your huge fan now ,continue the good work ,cheers
Thankyou so much for your appreciation! Blessed to hear such a kind words!
Best educational content ever in india. You seem very honest, straightforward, knowledgeable and practical adviser. Just one request, on Finology there are some courses but seems beginner level so please do bring out some more courses for intermediate and advanced level. stay safe and keep inspiring.
Thank you so much for your words!
Yes, we do have course for beginners, you can start with our free course, here is the link - learn.finology.in/courses/free
@@pranjalkamra Big respect for you brother. apart from beginner, Please do bring some advanced level courses to add a more value. By the way, Ticker is easy to understand unlike other website tools, simple yet amazing.. Soon will subscribe premium features.
@@pranjalkamra please check CFO / Pat for kirloskar and lovable stock
Really
SIR THANKS FOR EXPLAINING ALL THE TOPICS AND BASICS OF THE STOCK MARKET CLEARLY 😊
I usually suffer when I have to go through technical things, but Pranjal sir, you made it easy for me. You simplified the Topic of Rights issue. If I can understand this anyone can. Thankyou Sir.
Excelsior !
Hello Pranjal, a great way to learn through your classes. Thank you and your team for that.
A query regarding CFO/PAT:
The ratio seems to be reversed in some companies. For instance, for Godrej Consumer Products, it is 1.03, rather it should be 0.962. whereas for Colgate Palmolive, it is 1.16, which comes out to be correct as per the calculation method taught inyour video. So want to make sure whether it is CFO/PAT or PAT/CFO? An early response is appreciated
શ
The CFO/PAT that is showing is calculated of 1 year and the method taught in this video is of 5 years and for Colgate Palmolive it is correct maybe because CFO/PAT is little to more stagnant across the whole time period of 5 years
धन्यवाद प्रांजल जी, ऐसे महत्वपूर्ण प्रशिक्षण को डीसलाईक कैसे मिलता है। वो करने वाले अनपढ़, गवार और मक्कार लगते हैं।
you are unbelievably great at explaining such complicated concepts with such ease! there's no way one wouldn't understand. i am just getting into the stock market( a month before getting my first salary haha) hopefully i will learn well from you!
Hello sir, I'm 17 yr old girl and I love Trading and Stocks Market your videos are so helpful ❤️.....rights issue was a bit technical.
Hi ....I'm a doctor and I am learning a little bit about the market form your videos. Thanks
Hello Pranjal, Thanks for such an informative sessions, this is really great and thank you for doing this
I just have question on the Lession 6 regarding "Operating Cash Flow" and "Net Profit", I did perform this check on TCS and Infosys, the Net Profit for last 5 years is much more than operating cash flow for last 5 years, Shouldn’t we consider this check for IT companies? Please advice
Good to see you back confidently Mr. Pranjal Kamra. I love you.
Bilkul Clear Hai Sir. Aap Samjhate Hi Itna Achha Hai.
Binge watching your videos before jumping into the market makes me so aware.thank you
Sir I'm regularly watching your classes ..
Being a bigginer I'm getting the knowledge of terminology and other technical issuues of market..
I'm an Engineer and now l am very keen to invest in stocks..
Till this class I don't have any doubt.. I'm getting confidance that soon I'll be able to play with stocks under your valuable guidence
Thankyou so much for your kind words!
@@pranjalkamra sir ,
U said in most of the cases rights issue is not good, but I want to know in which cases it is good nd how?
The topics covered so far- Mrket cap; EPS; PE ratio; PB ratio; Div yield; promoter holdings; ROE; DE ratio etc.
My question- is it necessary to take everything in consideration to analyse a good stock? There will be few parameters which will be good/bad for some stock or the other. How to know exactly what parameters can help analyse the health of the particular stock?
Share market is such a deep world.. but u made it very sime in simple way
Genuine Review For Pranjal Kamra:
I really feel whatever he says, it is with complete honesty and integrity, I will be more happy to be his life long customer.
Thank you so much!
Hello sir, first of all congratulations and thank you so much for this series. I must say that your videos are very informative and more importantly the way you teach, give examples is superb.
Now, one query from today's session - I was comparing Operating Cash flow with Net Profit for a company but Cash flow is almost 4.5 Times of Net profit, however, the company is in huge debt.
Please explain
broo it would most probably be reverse i.e net profit be 4.5 times of cash flow....and also debt is a financial activity and cash flow is from operating...so debt can differ
Thanks Umang but please check Jain Irrigation.
3243.57operating cash flow jain irrigation
729.66 net income
Pranjal kamra good videos all.. Thanks.. Pls explain.. He is right.. I have personally checked with calculations... Jain irrigation is the share
@@shpatel7627 jab company net profit calculate krte ha toh usme se sare non cash expenses minus kr deti ha toh hume net profit kam lagta ha but reality me company ke pass se paise nhi jata ha isleye jain irrigation me operating cash flow jayda ha as comapred to net profit .
God bless you 🙏 sir for this content for free ...I buy your membership when I am capable of it sir to support you sir 😀
Me too
Mai purchase kar leta agar money hota too. Abb earn karunga part time phir purchase karunga.
Hi pranjal .I have watched your curfew classes & wanna share that you're explaning such complex share market technical terms in layman form...keep doing the good work .
Really very useful information with nice explanation
Your videos gives absolute clarity about the subject! Loved your videos!
Glad you like them!
Hi ki ho
I did the CFO/PAT calculation for Lovable, on the website it's showing 5 yr avg as 3.29 but it's actually 0.329. Maybe just a decimal error, please fix this. And for Godrej consumers, the CFO/PAT ratio is showing 1.03 which is actually PAT/CFO.
I think it is in crore and website showing in lacks
Take care for PAT ie profit after tax, and profit befor tax
What is CFO and pat
@@gurmeetgurjar5182 CFO is Cash flow statement and PAT is Profit after tax. In cfo only cash related transactions are shown that to of current year no credit transactions whereas in P&L statement PAT is shown which also includes credit transactions and many more things like deprection, advance rent,advance salaries paid,etc
hope it helped you and also, others can reply if want to add more valuble things.😀
Bahut acha video bnaya h isse hamare mehnat ke paise bach sakte h bhaiyya
Your free classes are just wonderful and I just crazy to enroll the courses you offer for stock market.
Sir here you've taken the assumption that even after the rights issue the earnings of the company remain the same but isn't that wrong? Shouldn't the earnings of the company increase as it has more cash available now to expand its operations?
Absolutely. I was thinking the same.
But it can go the other way too, right..? Like more money is equal to more risky investment and it can result it loss.
I was also thinking same 👍
Thank You So Much Sir for this classes 🙏🏻👌🏻
Most welcome!
It was not very technical. It was very good..thank you very much for making such videos.
After watching your explained video I love investing
#first Kindly make a video on when to enter and when to exit
Enter when people are leaving a stock for no reason or the stock is at correct valuation exit only if company is going bankrupt or you need the money after booking some profit. Best is to stay invested for atleast 5-10 years.
Learn technical analysis to know the entry and exit and also for long term Investments
Teach us entry and exit sir-pranjal kamra
@@navigator665 very nice explanation in few words keep up the good deeds
sir, in some companies last 5 years cash flow shows more almost double than last 5 years profits, what to conclude from it ? pls help...
Many people was saying me that share market, trading, these are luck. but after watching these videos I realized that these are not luck, it is pure mathematics & a game of psychology.
I loved how Pranjal sir acknowledged technicality of the subject, and was pretty open about it. I myself understood the excel sheet after watching it 2 times.
ticker jadi app layie sir... because ber ber google pe ja kor salana atcha nhi logta
i am a ca final student but to be honest i have to confess that i had no idea right issue and bonus can be so bad for investors. All these days i have learnt that it is a postive news for investors.Thank god i took the attempt to select this series ..Thank you sir.. you are a true gem of finance
Thankyou for the appreciation!
I really loved his rights issue explanation.
Now i am much better information about stock market. Thank you sir
You are too good man!
Very Knowledgeable🙏
Wonderful Series. I don't think any other TH-camr explained fundamental analysis with such clarity. One suggestion is to add subtitles to all this playlist so that non-Hindi viewers can also be benefited. One request, please make a video on Partly Paid Shares. TATASteelPP and ReliancePP
Very Good Analysis Sir, A thousand Pranams
For some companies, I see that the sum of Operating Cash flows is greater than the sum of New Profit. How is it possible?
And, is there any exception to the rule the sum of CFO should almost be equal to the sum of PAT?
It's not necessary for cash flow to be exactly same as PAT , it is fine even if PAT is 80-85% of cfo.Operating cash flow can be greater in some cases where Depreciation and amortization is more and due the difference of change in working capital.
Is greater CFO a good sign or a bad sign ? Like if the PAT is x and CFO is 2x then ?
@@sailakdhar8893 It's neither good nor bad ,cash flow is double than PAT means They have received cash either from past cycle receivables or must have got advance for the company's order ,whether the CFO is more or less we need to find the reason behind it ,in ideal situation they have to be same but it doesn't happen like that.
@@rohitdubey2281992 Ok I see. Great, that helped a lot. Thank You.
Sir..right issue se to hume capital appreciation ka bhi to benefit mil ra h...qki hume right shares discounted price pe mil rhe h..
With this perception is it beneficial ?
Hi, Im doctor and watching your videos since last 6 months... you're explaining all things very much simple and understandable language... thanks
I have one question if any good company introduce rights issue wheather you take it or not you will be in loss only ....
So best way to sell the shares right ???
You are right, Rights issue is not fair for investors But it is still worse for not applying to investors.
Hello Sir, I like your curfew classes and my best wishes to you.
In case of right issued you assumed that net profit would be same for subsequent years, due to which EPS reduced, but if any company is making good profit YoY then in that case is it good to apply for Right Issued?
Thanks and lots of love.😇😇
Sir u are really a good teacher couldn,t forgot u ever in my life sir. Many many thanxs sir.👍
You have explained when a Rights Issue is not preferable for a shareholder. Please also explain a situation where it is good for the shareholder. Thanks for great and lucid teaching.
Pranjal, Thanks for such an informative sessions, learning a lot
COMPANY RIGHT ISSUE SE PAISA LE RHI H TO USKO BUSINESS ME BHI TO USE KREGI
TO COMPANY KA KAAM BHI BADHEGA AND PROFIT WILL ALSO INCREASE
1)but current valuation and margin of safety change hoti hai , jis wajah se you have to be alert and be extra cautious with the company.
2)Company ko growth and profit badhana hai toh woh reserves(past profit) se badhayengi if the management is smart , if not unhe paise raise karne ke liye equity dilute karni pad rahi hai jaise Ravneet gill yes bank ke liye koshish kar rahe thhe so rights raise karna in a way equity dilute karna hua.
To company k owners apna khudka share market mein laye na usse beche
Yaha jisne right issue liya uska risk high to rahega par agar company acha perform kar gayi.... to usko.... Right issue se pehle jitna profit/share fayada(profit) ho rha tha utna hi profit hoga.
Par jo log ne right issue nhi liye unka loss hoga na... Kyu ki no. Of shares to increase ho gaye... Kyu ki koyi aur right issue le liya
Sir if the cash flow from operating activities is consistently positive for 5 years and cash flow from financing activities is negative for 5 years, this indicate that company is using its cash wisely but in case of lending business such Bajaj Finance and HDFC this is opposite. Can you please explain?
Very effective yet simple explanation, thank you !!
12:45 very easy explanation sir. Each and every videos😊
Sir , is it worthful to invest in a stock that hits circuit daily?
It depends if lower and u trust the company then wait till the stock reached it last lower circuit ....and if upper then probably u will not get the shares ..as there will only buyers in the market...as much as i know ..plz take it as suggetion 🙏
the company which is hitting upper and lower circuit daily is not for investing for now i know you aretalking about irctc
it has good monopoly but not the right price to buy let it correct more i will suggest you buy irctc at its around ipo price that will be worth it
R u talking bout IRCTC?
Analyse the candle bar and use technical analysis( moving average, exponential average, bolinger bands)
Then u will able the earn profit
@@harshalsatlok-_-3258 No I'm not talking about IRCTC , its Simplex Infrastructure 😅
6:26 Company ka pura naam nahi liya sir.. 😁😁😁😁😁😂😂😂
Bohot hi achha explanation or thankyou so much sir❤️ for this classes
Started investing after seeing your videos, too fruitful too knowledgable, too easy to understand.
Thankyou for the kind words!
from nepal .. lots of love
Dude, how does EPS matters to us if we want to sell the stocks finally at high price. I think Rights will benefit us by providing us shares at discounted price. If a person who will not purchase the stocks in Rights, he will lose the opportunity.
"sell stocks finally at a high price"
Q) How does this happen?
(Removing all the market activity/temporary ups and downs)
Most possible scenario : company's earnings increases. EPS also increases
What rights issue does is getting fresh equity capital but from the existing shareholders by offering new shares at a discounted price. In the video shown above, you can see that the company raised ₹2400 capital from the new rights issue. Earlier, the company's total Shareholders funds was ₹3000 and now it's ₹5400 (80% increase in equity capital). This will also mean an increase in the shares outstanding, depending on the price at which the rights was offered. I'm taking an example of ₹200 as the issue price with current market price being ₹300,
Let's say this company had generating ₹300 profit last year with a ₹3000 crore equity capital (10% ROCE if debt is zero) and had 10 crore shares. EPS = 30 (₹300/10)
Remember this: Now, due to the rights issue, number of shares outstanding will be equal to 20 crores (10 crore new shares offered at ₹200 + existing 10 crore shares at ₹300)
This is all good until the new money is put into work and returns at least 80% higher profits than last year. What if the company fails in doing so? All the new money raised is NOT serving its purpose of maximizing the profits
Let's say that the company's profits doesn't increase at all in the next year.
EPS=15 (₹300/20). This is a major drop in EPS, from 30 to 15 (~50% reduction). ROCE will reduce dramatically to 6% (₹300/₹5400). Stock price should ideally tank by this many and this will also affect the existing Shareholders who didn't take part in the rights issue also.
For the EPS to increase, co has to generate at least 100% plus profits next year. (i.e; 600 crore) which will make EPS as 30 (₹600/20), which same as before. Why will market reward a co which raised 80% fresh equity but only managed to generate the same EPS?
So, the ideal growth in Profits in the next year should be above ₹690 crore signalling a 15% plus increase in EPS which will result in stock price going higher
@@vinaytm
There are more chances that the company will make profit more than before issuing Rights by using the capital raised from selling shares at discounted price.
By this the stock price has to increase due to positive sentiment of stockholders and the increase in stock price will hugely benefit people who participated in Rights by selling their stocks at high price which was bought at discounted price.
I am talking about the scenario in which the stock has to be sold at high price, which has been purchased during Rights issue. Let the original number of stocks be with you.
@@rohitrathod8150 agreed. If & only if the company uses the new capital well and generates from profits than before without denting the ROCE, this rights issue can lead to a bargain in stock price but you know how company are run in India.
Only a select few have a ROCE>20%, new capital infusion will further make the profit generation part a little more difficult. It all depends on the management capabilities & trustworthiness. Hence, I provided the above base case. If everything goes well, rights issue will be a bargain to existing shareholders, or else, it will be a disaster in the making
@@vinaytm 'if and only if the company uses the new capital well'
If we are so negative about this company ideology then we would not have purchased the stock of the company.
Rights issue can be a good way to raise capital(no external debt) so that the company can execute its plan, for example, buying some other company(can raise profit) or increasing the existing production rate by purchasing new equipments or paying debt(which will eradicate the interest payment).
Also, it's good opportunity for the existing shareholders to buy the stocks at discounted price, I can't see any other way to do this.
@@rohitrathod8150 👍
I am a teacher butyour teaching skill is excellent.Big salute.
Thank you sir, it means a lot.
yaar kitna sahi samjhate ho aap
Sir, I understood why right issue is not useful through the earnings point of view but if a company is issuing right shares and The shareholders can get the shares at a discount price then they can also sell those shares at the current market price and book their profits as they bought those shares at a discounted price.
So isn’t this good as there can be good amount of gain through selling those shares?
Yes
What about rights issue of companies with future earning potential
You can exercise the rights if you want in that case.
Stock market classes: th-cam.com/video/Hi-DLP1670w/w-d-xo.html
You are really genius and beautiful way of Talking sir
Thanks and welcome!
I salute your teaching...
Hello sir Good Evening
Sir I put one question regarding pe ratio
Related to 1st video can u answer sir
Please if possible Thanks 🙂
PE =MPS÷EPS # Hm ek share k liye kitna jda paisa de rhe hai
@@rishabhsingh5751 Thanks Brother
For ur reply but please kya aap 1st video mein check karke bataa sakte ho ki hul ki pe ratio is right or wrong 🙂
@@RiteshKumar-vt2ev Bro PE high hai actually HUL ka kyuki wo Overvalued company hai Market leader hai 0 debt hai and many more
15 ka PE is reasonable par HUL ka PE down isiliye nahi hoga kyuki koi use bechna nahi chahta
@@RiteshKumar-vt2ev industry k PE dekh lo aur ushe compare kro # peers comparision smj m aajeyega
@@rishikesh3590 Thanks for your reply Sir
But my question is Hul ki pe ratio
Video mein 70.18 hai but actually agar aap calculate karo toh vo 78 se bhi uper aa rahi hai 🙂 If you think I
Can't understand till now so pls call me
76529-33579 because I new this field
& I'm so happy to learn things 🙂
Sir EPS(rs) or EPS (TTM) ke farak Kya hay
TTM matlab TRAIL twelve months u have eps 3m, 6m, 9m but u dont have exact eps of 12m before financial statement so it is calculated by analyst
Your explanation is Great Sir...Thanks
Rights issued leads to dilution of EPS.
Very nice explained
सर आपकी कॅश फ्लो वाली स्ट्रेटजी को मैने GTPL हैथवे पर अप्लाई करके देखा
तो नेट प्रॉफिट लगभग 217 आया
जबकि कॅश फ्लो 786 करोड़ आया
ये कुछ समझ नही आया।
Kuch pta chala iska apko??
Sir there is one stock simran farms its net profit for 2019 is 4.04 cr but the operating cash flow is 16 cr how is this possible?
I have same doubt
He received the last year selling amount
Bcoz simran farms ko 2018 me jo paisa milne wala tha usse voh 2019 me mila isliye uska 2019 ka cash flow jyada ha
Thanks alot bhaiyya ise topic pr or video bnana aap Bhaiyya
Hi Pranjal thanks for such a detail explanation specially on “rights issue”.
What if, I sell my all the 300 stocks after right issue (100 + 200 right issued)
It give me good margin!?
Smart Move Bro
but market price bhi down ho jayegi kyonki eps kam ho gaya hai.
@@Name-iy3uz Haa bro par bol nahi sakte down hi hoga ya up hi jayega
par bhai do bol re down ho ha... kabhi toh uppar jye ga na
Right issue is a way by which co. Raise money for further growth.eps will reduce only for some time..once money raised by it will be invested ,earning of co increase ,eps will come back to normal position..
Being an mbbs student nd having daily tests🙁i was not able to see videos ...but now😌i am back again after studying till 2😂i am utilising my breaks judiciously😌thnks to pranjal kamra....nd i will watch atleast 1 video daily😥...never thought😶this lockdown will make me this much passionate about stocks....thnks again pranjal kamra🙌🙌🙌
I am eagerly waiting for the day.... when i will start investing😨all thanks to u sir☺
Good thing is that you always try to explain the concept with example. Thank you for sharing your knowledge. All the best
I am in 1st year engeenior but love your classes
Most brilliant teacher 👏
Thank you Pranjal SIR.....
Sir. You are great...
बहुत अच्छा लग रहा है सर
आपसे सीखने में 👏
IF OPERATING CASE FLOW IS HIGHER THAN NET PROFIT THAN IT IS GOOD OR BAD CONDITION I HAVE SEEN MANY STOCKS LIKE THAT PLEASE IF SOMEONE COULD TELL COMMENT....
ONE OF THE BEST CHANNEL FOR LEARNING AND UNDERSTANDING STOCK MARKET
I am a pharmacist but i love stock market classes.
Ache teacher to youtube mai bethe hai❤️
I like your video lectures and I love your character sir...You are very humble perfect teacher 🕊️
Thanks for identifying bad stocks. And above all very well explained for rights issue.
You are a great teacher indeed. I am really learning a lot from you.
Sir, you hv explained that applying for rights issue is generally bad for investors. However, if the shareholder buys the share at discounted price and sells it on market price then that guarantees a profit. So, how is it bad?
Apke ish gayan se mujhe ek business ka naya idea mil gaya mai ek fouji constable hu apki vajah se mujhe extra money income ka kam mil gaya ishke liye dil se 🙏🙏agar apki koi online business classes ho to jarur bataye
Mind blowing you teach us very well
I have a ques please jb RIA ayega toh sb apply nhi krenge toh isse Jo share price hoga vo unhi logo ka 1/3 hoga Jo iske liye apply krenge ya overall market share price 1/3 ho jayega ? please reply
Your detailed explanation made me understand even the difficult terms in stock market...Thank u sir