How to Analyze a Stock Like a Pro: Complete Fundamental Guide for Beginners

If you’re just starting your investing journey, analyzing a stock might feel overwhelming. But don’t worry — this guide will help you break down the fundamentals like a pro.

🔍 What is Fundamental Analysis?

Fundamental analysis means checking whether a company is strong enough to invest in for the long term. You’re not just buying a stock — you’re investing in a business.

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🔑 Key Things to Check:

✅ Company Revenue Growth

• Check if the company’s sales are increasing quarter by quarter.

• Use: Quarterly Results > Revenue section

✅ Profit (PAT) Trend

• PAT (Profit After Tax) should show steady or growing numbers.

• Avoid companies with declining or unstable profits.

✅ PTBV (Price to Book Value)

• A PTBV between 1–3 is usually considered stable for investment.

• Lower PTBV = safer entry zone.

✅ Debt and Liabilities

• Low debt = strong balance sheet.

• Avoid companies with high borrowings unless it’s a turnaround story.

✅ Promoter Holdings

• Rising promoter or institutional holdings = strong internal confidence.

• Sudden fall = red flag.

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🧠 Bonus Insight:

Smart investors don’t chase the market. They analyze patiently, build a watchlist, and wait for the right valuation before entering.

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🎥 Want Real Chart Examples?

Watch this free video where we breakdown live examples using real data and our analysis process.