Stock Fundamental Analysis & Investing Course Made Easy

Master how the profit and loss (PNL) account measures yearly profit, with income on the right and expenses on the left. Learn examples such as gross profit and bank interest.

Learn how a balance sheet shows assets and liabilities, tracks accumulated data from the first day of business, and evaluates the financial position by matching assets to liabilities.

Distinguish capital expenditure from revenue expenditure using restaurant examples, showing long-term assets like refrigerators and recurring costs such as salaries in the balance sheet and profit and loss account.

Learn to download any company annual report and extract balance sheet, profit and loss, and cash flow data, including consolidated versus standalone figures, with Money Control and similar websites.

Understand standalone financial statements that include the headquarter and all branches, detailing the balance sheet, profit and loss, and cash flow for the company.

Learn how holding companies acquire more than 50 percent of shares to form parent and subsidiary relationships, and how these structures relate to consolidated financial statements.

Learn how holding companies own subsidiaries and associate companies by ownership thresholds: more than 50% creates a subsidiary, while 20–50% makes an associate. Understand practical examples.

Learn how consolidated financial statements merge holding, subsidiary, associate, and joint venture entities into a report, while standalone statements reveal each company’s balance sheet, profit and loss, and cash flow.

Learn to compare standalone and consolidated financial statements, see how subsidiaries and joint ventures affect balance sheets and revenue, and navigate Moneycontrol's financials to view these reports.

Explore the two types of business, family owned and professionally run, focusing on promoter shareholding, ownership, and how shareholding patterns affect investment decisions.

Analyze shareholding patterns to assess family-owned versus professional businesses; monitor promoter holdings, their increases or decreases, and verify data on stock market websites.

Explore how shareholding pledging works, with promoters pledging shares as collateral for bank loans, and assess risks when pledging exceeds thresholds like 1%, 10%, or 20%.

Explore how promoter pledging influences stock risk by analyzing real examples from Reliance and Tata Consultancy Service, reading pledging percentages in shareholding reports.

Identify how block deals differ from bulk deals and assess promoter share activity, noting that buying own shares is positive while selling signals risk, with a 0.5% threshold.

Explore block deals and bulk deals by searching company names and keywords to reveal promoter activity and deal details, and assess selling or purchasing patterns signaling investor risk.

Auditor reports verify financial statements including profit and loss, balance sheet, and cash flow, ensuring a true and fair view for shareholders and signaling risks if an auditor resigns.

Learn how auditor reports assess company performance, understand when an auditor resigns as a potential red flag, and read independent auditor reports for standalone and consolidated financial statements.

Analyze a company's balance sheet by identifying shareholder funds, reserves and surplus, and current and non-current liabilities, then connect equity and loan funds to overall assets.

Explore the balance sheet by distinguishing non-current and current assets, including land, fixed assets, inventories, trade receivables, cash and cash equivalents, and current investments.

Examine cash and cash equivalents on the balance sheet, comparing standalone and consolidated views to assess cash adequacy amid inflation and COVID-19 impacts.

Explore reserves and surplus, including general reserve, retained earnings, and security premium, and learn how higher reserves signal potential dividends and stronger shareholder value from balance sheets and other equity.

Assess a company’s equity alongside reserves and surplus on the balance sheet to gauge promoter commitment and profitability. Rising figures signal strong backing, while consistent losses warn of risk.

Explore the debt to equity ratio, a solvency metric that compares debt to promoter equity, with an ideal 2:1 ratio and cautions against high debt using examples like Big Bazaar.

Learn how the current ratio, a liquidity measure, compares current assets to current liabilities. Calculate it as current assets divided by current liabilities, with a 2 to 1 target.

Explore how cash flow statements show cash inflows and outflows, contrast cash and accrual accounting, and explain operating, investing, and financing activities from an investor's perspective.

Learn to read a cash flow statement, including net cash and cash equivalents, brackets for minus, and positive and negative trends in operating, investing, and financing activities across years.

Learn how to calculate free cash flow from operating activities by deducting asset purchases and adding asset sales using cash flow statements.

Learn the concept of ebitda, earnings before interest, tax, depreciation, and amortization, and how it flows into ebit and earnings after tax for fundamental analysis.

analyze return on capital employed (roce/roic) as a profitability ratio by evaluating EBIT, depreciation and amortization, and capital employed (shareholder fund plus long term debt) to gauge potential returns.

Track how many times a factory's inventory is manufactured and sold in a year to gauge liquidity. A higher inventory turnover ratio indicates stronger performance and faster revenue generation.

Discover how to read the inventory turnover ratio using Reliance as an example, tracking 2018–2023 performance and pandemic impacts, and recognize a rising turnover as a positive signal.

Learn how the PE ratio is calculated from price per share and EPS, and compare a company’s PE with its industry PE to spot cheaper or pricier valuations.

Compare a company’s price-to-earnings ratio with its sector P/E using stock market sites, and learn to calculate P/E manually from market price per share and EPS.

Explore how the target price estimates a stock’s one-year per-share value using an EBITDA and enterprise value calculator, with data from ratios and long term debt.

Explore how gross domestic product drives stock market trends by linking GDP growth or decline to market performance, and understand primary, secondary, and tertiary sectors' roles.

Explain cash reserve ratio and statutory liquidity ratio, and how central banks regulate banks, then show how higher CRR and SLR lower loan availability and influence inflation and stock market.

Explore the repo rate, the central bank's lending rate to commercial banks, and its effect on loan costs, production, gross domestic product, and the stock market.

Explore the balance of payments, explaining export versus import, the role of foreign reserves, and how trade balances influence the stock market and a country's economy.

Analyze cyclical industries that rise with gdp growth, like automobiles, and focus on growth-phase companies or sub-sectors such as electric vehicles, while considering government policies.

Conduct sector wise analysis across banks, FMCG, telecom, infrastructure, automobile, and oil and gas, noting banks’ debt-to-equity exception, ARPU, order books, and crude oil prices and policy effects.

Explore global economic indicators like GDP and balance of payments, and learn to read order books and company data on trading economics to assess market activity.

Evaluate a company's qualitative factors by examining management honesty, fraud risk, and governance through keyword searches, LinkedIn profiles, annual reports' management discussion and analysis, and investor conference calls.

Diversify your portfolio across equities, mutual funds, banks (FDs), and international markets to protect income, and buy when the market is down to maximize returns.

Diversify your money by investing in mutual funds, US stocks, and local equities through ind money and Zerodha, and use dip buying to buy small amounts when prices fall.

Explore stock market fundamental analysis with a growing library of free and paid courses on Kuku courses, accessible with no signup.