Understand Businesses Before Investing
Purpose of This Page
This page explains fundamental analysis tools, what they help you understand, and how Indian investors can use them without turning analysis into over-analysis.
Fundamental tools help answer one core question:
“Is this business financially strong and reasonably valued?”
What Is Fundamental Analysis?
Fundamental analysis focuses on business performance and financial health, not price movements.
It looks at:
- Company earnings & growth
- Balance sheet strength
- Cash flows
- Valuation metrics
- Business consistency over time
Purpose: Long-term decision support, not short-term prediction.
Who Should Use Fundamental Analysis Tools
Useful for:
- Long-term equity investors
- Investors selecting individual stocks
- Investors comparing similar companies
- Anyone learning how businesses perform financially
You can keep it minimal if:
- You invest only via index funds
- You follow passive SIPs
- You don’t track individual companies
👉 Even basic understanding is often enough.
What Fundamental Tools Help You Do
Fundamental tools help you:
- Compare companies objectively
- Identify financially stable businesses
- Avoid weak balance sheets
- Understand earnings consistency
- Assess valuation ranges
They do not tell you:
- Exact buy/sell price
- Short-term market direction
- Guaranteed returns
Key Financial Metrics You’ll See Often
You don’t need everything. Focus on a few basics:
Profitability
- Revenue growth
- Net profit growth
- Operating margins
Balance Sheet
- Debt vs equity
- Cash position
- Asset quality
Returns
- ROE (Return on Equity)
- ROCE (Return on Capital Employed)
Valuation
- P/E ratio
- P/B ratio
- Market capitalization
👉 Consistency matters more than one-year numbers.
Popular Fundamental Analysis Platforms (India-Focused)
Below are commonly used tools, each serving a slightly different purpose.
🔹 Screener.in
Best for:
- Beginners & long-term investors
What it does well:
- Clean financial statements
- Simple ratios & trends
- Custom screening queries
Limitations:
- Limited historical depth in free version
- Not designed for price analysis
👉 Excellent starting point for Indian investors.
🔹 TickerTape
Best for:
- Investors wanting visual summaries
What it does well:
- Stock health scores
- Peer comparisons
- Valuation indicators
Limitations:
- Scores can oversimplify decisions
- Paid plans unlock deeper data
👉 Use insights, not scores, as guidance.
🔹 Moneycontrol
🔗 https://www.moneycontrol.com/
Best for:
- Broad market coverage
What it does well:
- Financial statements
- News + fundamentals in one place
Limitations:
- Interface can feel cluttered
- Data interpretation left to user
👉 Useful reference, not a decision engine.
🔹 Investing.com
Best for:
- Global + Indian comparison
What it does well:
- Financial ratios
- Earnings data
- Global context
Limitations:
- Less India-specific depth than Screener
- Heavy ads in free version
👉 Helpful for macro and cross-market views.
How to Use Fundamental Tools (Simple Process)
A practical flow:
1️⃣ Start with 2–3 years of revenue & profit growth
2️⃣ Check debt levels and cash flows
3️⃣ Compare ROE / ROCE with peers
4️⃣ Look at valuation in context (not in isolation)
5️⃣ Read basic business description
👉 Stop once clarity improves — not when data ends.
Common Mistakes Investors Make
- Chasing perfect ratios
- Ignoring debt and cash flows
- Overweighting recent results
- Comparing unrelated businesses
- Blindly trusting platform “ratings”
👉 Numbers explain what happened, not what will happen.
How This Fits Into Your Investing Journey
Fundamental tools work best when combined with:
- Long-term thinking
- Patience with results
- Simple screening logic
- Clear goals
They help you avoid weak businesses, not guarantee strong returns.
Disclaimer
Samnidhi Insights does not recommend stocks or platforms.
All examples are for educational understanding only.