FUNDAMENTAL ANALYSIS OF A COMPANY
1. Earnings Per Share (EPS) Meaning: Profit earned per share. Shows how profitable each outstanding share is. M ore the EPS more better is the company. It should be in increasing trend in past few year , if it is decreasing, or same then there might be a problem or have very low growth with the company. Example: A company earns ₹100 crore and has 10 crore shares. EPS = 100 / 10 = ₹10 EPS TTM (12 months count) should be 80+. 2. Revenue Meaning: Total income from sales before expenses. Also called Top Line. Example: If a company sells products worth ₹5,000 crore → Revenue = ₹5,000 crore 3. Operating Profit (EBIT) Meaning: Profit earned from core business operations. S hould be in increasing trend with atleast double digit performance (more than 10%) year on year basis. Example: Revenue = ₹100 crore Operating expenses = ₹70 crore Operating profit = ₹30 crore 4. Reserves Meaning: Accumulated profits retained in the company over the yea...