Tactics of Share Market- Learn How to Take Good Investment Decisions using Latest Technology Tools, Techniques and Methods of Measuring Company Performance

How to Check Past, Present and Future of Any Company listed in Stock Exchange

Hello everyone and welcome in the world of business environment. In this article I am going to chalk about the latest tools, techniques and methods which can be used to measure any company’s performance in the business world.
This article is going to be very useful for students, professionals and elderly people who want to make investment of their surplus funds into share market. If you want to know more about share market then you can read my another article here → "What is Share Market and How to choose the Best Investment Plan with Little Money, Learn in Easy and Simple Language"

So, let’s begin the main content.

One year ago, I wanted to make long term investment in stock market in the IT Sector. Because during COVID-19 there were only few business sectors which were operational at the time of pandemic. My monthly budget for making an investment was One Thousand Rupees only. So, I was not able to decide which stock I should invest in to get optimum returns on my invested money. I wanted to make a good source of constant income in future and at least equal to the interest rates of Fixed Deposits in banks.
Therefore I decided to make my own Systematic Investment Plan (SIP) and began my research on the internet. I have read many articles from various websites to learn “how investors take good investment decisions”

But Unfortunately, I did not get that of piece of content which I was expecting to learn. This is why I decided to take inspiration from real world situations and act accordingly. I started observing the facts about companies, like:

Why does any company is established? This question gave the birth to further 2 types of sub-questions:

What are company’s objective?
What does company provide?

What is the current position of company? And
What is the vision statement of that company?

I asked these questions to my Guru, who is having 25 years of work experience in Supply Chain Management, Resource Planning and Stock Market Analytics. He gave me answer based on my question “How to take a good investment decision”. He said:

“Whatever amount you will invest, make sure you are the only one who will be responsible for the decisions. Do not blame anyone for the results. Take your time to do research and put the efforts to find the reasons to make investment. If once you will find the reason, then it will not take more than 20-25 minutes a day to decide which company suits best to your requirements. A company’s performance is just an indicator but not a confirmation of success, this is why you should not invest in companies but invest in future. I don’t prefer Intraday or speculative trading to anyone but make long term investment in good stocks. Today, it is very difficult to select good stocks out of thousands of bad stocks. So, you should have to develop a vision to catch the real diamond out of fake ones. I strongly recommend you to take the decisions not only based on your or anyone’s experience but also based on the fundamentals, like financial and non-financial data. Save these three rules in your mind and try to find the sources from where you can evaluate them. These rules are: 1. Past, 2. Present and 3. Future”

Hence based on the recommendation of my Guru I started my research to get answers of my questions. After the research of more than 6 months, I got the techniques to decide how much amount should be invested in which companies.

Here in this article, I am assuming that a company has to go through three different stages of business life cycle. And based on this approach I have developed my own parameters of analysis in which is described below.

PPF Analysis

The concept of PPF Analysis is founded by Mr. Yogesh Jhamb, who is serving his services as an author to this blog since 2 years. PPF Analysis refers to the process of measuring Past, Present and Future performance of any company. To measure any type of performance, the investor must be aware about the tools and techniques which are used to make adequate analysis. These performance measure provides a right direction to investors on “how to make adequate choices with scarce means of sources, such as limited budget or insufficient pocket money”.

PPF Analysis will help to learn a lesson to investor by making him aware about the usefulness of technology tools, avoiding cybercrimes and the acts of money-laundering. It also teaches that an investor shouldn’t invest the huge amount of funds in one go But instead he should make a systematic investment plan so that he can execute his plans to turn them successful results.

Therefore I will try to put my language, soul and body together to define every single term of stock market in easiest way. So, let’s start with basics and moving ahead to advanced versions step-by-step.

Definitions

Past Performance: It is determined to make historical analysis and draw useful insights based on business background.
Present Performance: It is determined to check company’s current status of business activities. It measures that whether a company is sleeping or actively performing. The present performance of company is based on past experiences of employees in present.
Future Performance: It is determined with the help of company’s vision and mission statements which are led by Top Management. The future of a company can be predicted with the critical analysis of Past and Present Performance.
Models of Corporate Portfolio Analysis: These models are developed by different management experts from the industry of consultants and research scholars. These models include: BCG Matrix, GE Nine Cell Model and McKinsey 7S Model etc.

Let’s discuss them one by one in detail in forthcoming paragraphs:

1. Past Performance Analysis

In past performance analysis, we will do the background verification about company of last 5 years. But do remember that you shouldn’t include the extraordinary years in which the company’s business is badly affected due to some common cause of industry, like the year 2020 was a pandemic covid19 year in which mostly all the industries were at surviving stage, except Pharmaceuticals and Information Technology.

In Past Performance, following applications can be used to understand the past trend of company with the help of data analysis. These tools are as follows:

A. Ticker Tape

Ticker Tape Home Page Preview Desktop

It is a free-of-cost mobile friendly application for android users. The investors can download this application to get useful insights, reports, screeners, predictions and analyst reviews about the each company.

The application provides following main features in comparison to other apps available on the internet:
Smart and easy to use application which can be learned by anyone with a small investment of time. I will also try to provide a short training session on YouTube regarding “how to use tickertape for the investing purpose”

Service Mix of Ticker tape

It is a trusted app having more than 10 Lakh app downloads which is run by a private limited company based in Bangalore-India incorporated in year 2021 – as per company’s about us webpage & Google Play Store.
Ticker Tape holds the following ranks worldwide:

13th Rank in Finance & Investing Apps
336th Rank in India, And
5230th Rank Worldwide

Investors can check the financial records [like balance sheet, cash flow statement and income statement] of all the companies listed in Indian stock exchange [NSE/BSE] of maximum last 10 years for free.
Ticker tape also provide unique features and wonderful services to its premium users who purchase their paid plans. It gives access to paid users to compare one company’s records with its competitors at single place, which means the investors do not need to search for every company on google and then comparing the same with peer companies. Here we can compare the stocks like we compare the specifications of mobile phones on Amazon and Flipkart.
Ticker tape also provides a special Analyst Review Facility with the help of its team of experts. It gives the feedback of every single stock listed in Indian stock exchange, which helps to clarify the current status of company and also build a faith in company.
Paid plans of stock edge android app are not fixed, they are varied based on promotional discounts. The standard and current rates are as follows but always subjected to change:

Standard Rates updated on 04-01-2022 >

Twelve Month Rate: Rs. 1133/-
Six Month Rate: Rs. 637/-
Three Month Rate: Rs. 336/-
One Month Rate: Rs. 118/-
Fourteen Days Free Trail

Check the current price list of paid plans on Ticker Tape Website
Paid plan subscribers are entitled to following exclusive rights and features:

Advance screening
Data export facility
Investment insights
Stock deals insights
Stock forecast
Mutual funds insights
Key metrics
For more details, kindly visit to feature page on Ticker Tape website.

B. Stock Edge

Home Page of Stock Edge Desktop

It is a free-of-cost mobile friendly application for Android and iPhone users. The potential investors can download this application to get crystal clear insights, in-depth reports, predictions and related news about the each company’s affairs.

The application provides following main features in comparison to other apps available on the internet:

Inputs and Outputs used by Stock Edge to Make Stock Analysis - Who uses Stock Edge

Stock Edge is a trusted stock market research application which has downloaded by more than 10 lakh users according to Google Play Store.
The application can be used in either of the following versions:

Android App for smartphone and tablat users such as Redmi/OnePlus etc.
iOS App for iPhone and iPad users
Stock Edge Web (StockEdge.com)

StockEdge holds the following ranks:

69th in Finance & Investing Apps
Country rank 2506th in India, And
Global Rank 38,017

Potential investors can get detailed reports of FII and DII data [Foreign & Domestic Institutional Investors].
Stock Edge grants almost full access to professionals to analyse the stocks with the help of various accounting ratios, such as price to earning Ratio [also called PE Ratio], cost to income ratio, liquidity ratio and many other types of ratio analysis.
Investors can check the consolidated or standalone financial records [like balance sheet, cash flow statement and income statement] of all the companies listed in Indian stock exchange [NSE/BSE].
Paid plans of stock edge android app are not fixed, they are varied based on promotional discounts. The standard and current rates are as follows but always subjected to change:

Standard Rates updated on 04-01-2022 >
Monthly Rates:

Rs. 399/- stock edge premium
Rs. 1499/- stock edge club

Quarterly Rates:

Rs. 999/- stock edge premium
Rs. 3999/- stock edge club

Yearly Rates:

Rs. 2999/- stock edge premium
Rs. 14999/- stock edge club

Check the current price list of paid plans on Stock Edge Website

Paid plan subscribers are called either Stock Edge Premium users or Stock Edge Club users and they are entitled to following exclusive rights and features:
Refer to document attached below or visit the Stock Edge Website
Paid Plan StockEdge: click the image to enlarge

C. Money Control

Home Page Money Control Desktop

It is a most trusted, prevalent and robust application, filled with news related to stock markets, businesses, government sector and a online portfolio management software. Money Control is also known as a software for professional people. It appears in more than 43% of internet searches related to finance and investment. It receives 99.95% purely organic traffic which means moneycontrol spends money for only 0.05% to get paid visitors on its software. It has following unique set of features:

Ranking of Money Control Worldwide

The application can be used in either of the following versions:

Free Android App for smartphone and tablat users such as Redmi/OnePlus etc.

iOS App for iPhone and iPad users
Money Control Web (MoneyControl.com)

Money Control holds the following ranks:

2th in Finance & Investing Apps
Country rank 43th in India, And
Global Rank 517

Paid plans of moneycontrol android app are not fixed, they are varied based on promotional discounts. The standard and current rates are as follows but always subjected to change:

Standard Rates updated on 04-01-2022 >

Rs. 49/- per month.
Rs. 365/- per year.
Rs. 1999/- for three years.

Check the current price list of paid plans on Money Control Website.
Paid plan subscribers are called Pro Users in money control app and they are entitled to following exclusive rights:

Ad-free experience
Personalized News
Ideas for profits
Technical analysis by professionals
Guru speak and free access to paid webinars
Pro-live chat
Fundamental Research by the dedicated team for Pro Users
They helps to connect Policies and Politics
Macro Meter
D street cues
Potential investors can get detailed reports of FII and DII data, dividend distributed in past, investor relations, company’s stakeholder reports and many more things.
Money Control grants almost full access to professionals to analyse the stocks with the help of various accounting ratios, such as price to earning Ratio [also called PE Ratio], cost to income ratio, liquidity ratio and many other types of ratio analysis. The only demerit which I disliked is not a Ad-free experience. It shows so many Ads to free users on each time when the user click any button inside the app.
It gives an overview of Top Gainers and Top Losers in market.

2. Present Performance Analysis

To determine the present performance analysis, an investor has to look after the company’s activities in present. The company’s present activities can be the result of past or based on future. Hence, after reviewing the past record of any company – the investor now should put efforts to know the details about company’s mission, goals and short term objectives. The following tools and techniques can be used to determine the present performance of any company listed under Indian stock exchange markets, such as BSE India and NSE India. Let’s start:

1. Company’s Official Website

It is the online house where any company puts its information first. So, whenever you want to know the answer of questions like “What is the business of Tata Group” and “What are its objectives” then you must visit the official website of that company. It is like the legal digital bank of information about company where all the unauthenticated data circulated in News Media gets sorted. You can refer to the following web-pages in the official websites of company to dive deeper into the insights:

Home Page or Landing Page
Investor relations
Client relations
Company’s clients
Advertisement in News Media
Vision, Mission and Goals
Career Page
Employer & Employee Relations
Academic & Corporate experience of CFOs, Directors and CEOs of company

2. Trusted News & Media Channels

A company uses various means of channel media to circulate its official messages. Mostly companies give advertisements and announcements thru national and international media channel partners, such as CNBC, The Hindu Newspaper, Dainik Bhaskar etc. So, a investor can check the newsroom either online or offline using the following trusted channels of communication:

CNBC for international affairs & subsidiaries for Indians like “CNBC Awaaz”
Business Standard
The Economic Times
Business Today
Google Newsroom
Outlook India

3. Brokers & Channel Partners

These are the registered companies under Securities Exchange Board of India for providing brokerage and underwriting services to the companies listed under Indian national stock exchange. Customers can open their Demat accounts thru these brokers and start their investment in stock markets. These broking firms have dedicated team of experts who manage customers’ portfolio and always remain in constant touch with market conditions. Therefore a investor can trust any of the following software companies to start their trading journey. Based on my practical experience, I am using the following apps but I don’t provide or claim any legal advice in case of any mishappening:

I am using:

Zerodha
Upstox

I am not using but these are in trend:

Angel Broking
5 Paisa
And other banking subsidiaries

Channel Partners Like

Money control
Stock Edge

3. Future Performance Analysis

As we all know that future is unpredictable and uncertain. Nobody except God knows “what is going to happen in the next moment”. It may be the earthquake, Omicron and any natural disaster can happen. Even the non-natural disaster like investors’ expectations can bring a drastic change in the future of stock markets. Therefore, making predictions about stock markets are also not certain and they are always subjected to change. But even then we can make estimates of stock prices based on our expertise in domain, experience and data analytical skills.

So, if a investor wants to know “When he should invest and How much he should invest” then he/she can either take professional advice from a group of experts holding significant experience in the domain or by doing his own research by following the PPF Analysis mentioned above.

4. Models of Corporate Portfolio Analysis

It refers to practical cum theoretical framework of defining the company’s portfolio of investments in different segments, such as IT, R&D, HRM, Product Mix and many more. These models are as follows:

BCG Matrix by Boston Consultancy Group
GE Nine Cell Model and by McKinsey & Company
McKinsey 7S Model etc.

Basically the essence of all these models are based on the core concept of SWOT Analysis. So, in this article I will not discuss the each model listed above but I will let you know about the SWOT analysis in brief.

SWOT Analysis is a kind of strategy which is used to give a direction to investor while taking investment decisions. The four pillars of SWOT analysis are:

Strengths: It defines the areas and elements of business environment where an enterprise is fundamentally strong. And thus these are called the strength of any company which helps it to achieve competitive advantage.
Weaknesses: It defines the areas and elements of business environment where an enterprise is fundamentally weak. And thus these are called the weaknesses of any company which lags it behind in competition. For example: When electronic companies found that Radios have become obsolete then they discontinued the same. It was their weakness.
Opportunities: It indicates the area of potential growth where an enterprise can do much better than its existing state. For example: Latent View Analytics Ltd. is the newly listed company which has high potential of growth due to nature of its business activities. It provides business analytics and business transformation services which has never ending demand in market.
Threats: It indicates the much risky and the most dangerous activities of any company that can badly affect the company’s present and future business. For example: If an Indian company is investing huge amounts in Cryptocurrency despite knowing the fact that it has not become a legal tender yet – then it can become a major threat for company either today or tomorrow when government will take the decision.

Over to You:

Thanks for reading this article and i request you all to submit your feedback in the comment box below. If you like this lesson then do comment and share your experience. And in case you do not like something then please mention it below. It will help me to stay motivated and keep writing a good piece of content for you.

Thank You.

Yogesh Jhamb :)

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