Rule 4: Good Financials.
After selecting the business with long term prospects it is important to have a look through the financials before investing in the business.
Here are the key financials one has to look for in financial statements:
- Growth in Sales
- Growth PAT or Net Profit
- Consistency or growth in Net Profit Margins
- Low Long Term Debt to Equity Ratio
- Consistency or Growth in Return on Equity.
Lets understand it with example of Britannia Industries
Video Explanation
No comments:
Post a Comment