Choosing best equity shares in India can be very difficult because there are hundreds of companies listed on the stock market. Importantly, a single wrong decision can put a dent to your pocket and prove to be a hurdle to reaching your financial goals bringing your investment portfolio to ground levels. There are certain factors such as financial ratios, a thorough study of the balance sheet, income statement and promoters background that can offer you guidance in picking the best quality stocks.
Here are the top 3 ways:
- Credential of The Promoter
Companies with the best brain in the industry can reach the top very fast. So, when you are picking up high-quality shares for the investment you should check the credentials of the promoters, the people who are behind the business. Do they have the right expertise, experience, and qualification to propel the venture to pinnacle? If yes, then investing in such stocks can be really a good idea because initially, the base price of the stocks might be less.
- Business Model of The Company
It is quintessential to check the business in which a particular company is working prior to making an investment. Secondly, if the business or the industry specifically has high chances of blooming in the near future, you must find out how the company is doing against its peer group. A close look at the management and the overall business model of a company also plays a major role in deciding how well the shares will fare in the long run.
- Revenues and Resources
The third thing that you need to check is whether the company is in servicing or manufacturing business and from where it is obtaining revenues. The resources and the way it is clocking the revenues can give you a good idea about the ability of the company to grow.
All these parameters will help you to choose the best equity shares in India for investment.