Dear Sir My topic for summer training is fundamental analysis in equity markets. I am very much confused regarding my selection of companies. I want to do fundamental analysis of atleast four companies. Could you please help me in selecting the companies. Also there is a problem regarding fixing the objectives for my project.

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Please help me as soon as possible. Objective should be such that it should convey that fundamental analysis is and should be the base for stock market analysis.

Dear Payal, your project is very common these days but you can make it worthwhile. Fundamental analysis is now the backbone of equity research in any stock market. Fund managers rely too much on fundamental analysis if the investment horizon is long term. You may consider following objectives for your project: I also suggest you to do the following to carry out a worthwhile fundamental analysis of the select companies: Prepare projected financial statements, specially income statements of the sample companies; ii.

Calculate Free Cash Flows of the sample companies iii. Discount the above free cash flows with appropriate discount rates i.

The discounted value of free cash flows will be the intrinsic value of the sample company.

You may select blue chip companies, as suggested by Anand above, or you may select mid-cap companies. The names of such companies can be found in Group B1 in the BSE.

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You may also like to visit websites of BSE and NSE to have a look at the sample equity research reports of some companies. They are available as free downloads and you can have some clues on how to carry out fundamental analysis.

Feel free to post more queries if you have any.

Thankyou sir for the suggestions. I have one question: If you have to form a portfolio, then do not select stocks from same sector. If your project has nothing to do with formation of a portfolio, then you are free to choose sector s of your choice.

Thankyou Sir I have one query: Is it necessary to consider EVA of company in fundamental analysis or we can omit it. I am taking into consideration only three points in my analysis -within sector analysis -financial analysis -valuation DCF model Sir if any addition you consider for better analyses of a company then please guide me.

EVA is not compulsory but it will add some value to your project. Since you are calculating DCF value of the selected companies, you can add EVA calculation also without much additional work.

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Besides, when you carry out sectoral analysis, try to include Porter's 5 Factor model too. You need to be the querist or approved Mbaclubindia expert to take part in this query. Click here to login now. Registered members get a chance to interact at Forum, Ask Query, Comment etc.

All trademarks and copyrights are held by respective owners. Home Experts Finance Fundamental analysis in stock markets. Fundamental analysis in stock markets Category: Finance This query is: Payal Gupta Posted On 06 June Dear Sir My topic for summer training is fundamental analysis in equity markets.

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MBA in Finance Please help to select 3 subjects out of 6 Interest rates Regarding IPO of small companies Market maker requirement for IPO. Sign-in to your account Username: Remember Me Forgot your password? Sign-up now Join MBAclubindia. Fundamental analysis in stock markets. Payal Gupta Posted On 06 June Anand Wadadekar Posted On 06 June Ravi Agarwal Posted On 06 June Payal Gupta Posted On 07 June Ravi Agarwal Posted On 08 June Payal Gupta Posted On 08 June Ravi Agarwal Posted On 09 June MBA in Finance Please help to select 3 subjects out of 6 Interest rates Regarding IPO of small companies Market maker requirement for IPO Quick Links Experts Home Apply As Expert Daily Digest Show all queries Ask a Query Answer a Query Hall of Fame Settings Only for experts Browse By Category.

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