There are thousands of companies listed in the stock market. If we do fundamental analysis of companies one by one and then make a list of stocks, it will be very difficult for us to find 8-10 stocks in which we want to invest.
Therefore, in today’s article we will tell you about such a tool in which we can set some parameters and after that we will get a list of companies according to those parameters in which we want to invest.
Why screener. In is important for stock selection
Stock picking is not gambling. It is a well thought out process. It is like finding companies that have a strong foundation. A strong foundation is what makes a building sustainable. This is where investing really begins. It begins with the right information and analysis.
This means examining the financial health of the company. Looking closely at their financial documents. It is about understanding their business model. A good business model is what drives a company forward. Strong fundamentals are like a solid foundation of a house. They provide stability and security to the company.
Ignoring fundamentals is like buying a used car without opening the bonnet. You don’t know what might be wrong inside. We don’t want a losing deal! We want a winner.
We don’t want losers! We want winners. And to be a winner, strong fundamentals are a must.
So how do we find these strong companies? You can spend hours reading financial statements. Or, you can use a tool that does the hard work for you – Screener.in
This website is so useful! It’s like having a team of analysts at your fingertips.
You can filter specific stocks from thousands of stocks after setting specific parameters of your fundamentals
How to create an account on screener.in and what parameters do we get information about
1-First, go to their website(www.screener.in ). Find the Sign Up with help of your mail id and password
Or you can also register using your Google account.
2- Now search company name. And get fundamental knowledge about company.and you can decide to invest in that company.
3-Now we get following fundamental parameters about company
Market Cap
Market cap – This tells you the size of the company. Large companies often offer stability and security. But small companies can also perform well in the future
Stock PE-
P E ratio is used to find out whether a stock is available at the right price or not.This ratio should be used for companies of same sector.
ROCE and ROE
ROCE and ROE are both metrics used to measure a company’s financial performance, but they measure different things. ROCE measures the return on capital used by the company, while ROE measures the return the company’s shareholders get on their investment. These should be more than 20 ℅
PEG ratio
It tells whether a stock is available at a fair price or not. It should be less than 1 to find undervalued stock.
Debt to equty
Provides information on company debt. it should be less than 1.
Promoter Holding
The promoter’s holding in the company should be more than 50% because if the promoter does not invest in his own company or does not trust his own company, then why should other investors trust his company?
How to create a custom screen by setting your own parameters
Follow the following steps.
1- click on ‘create new screen’ option
2-set your parameters as per following image
3-click on run the Query option
4-Now you will get list of stocks
5-So now you can plan to invest in these stocks after further research.