THE market is a slave of earnings and price earning ratio. Sure you need to do a lot more research than just the numbers, but the numbers are the place to start.

You need to do this kind of an analysis – of course you need to know which companies to compare – even here these 3 companies are in slightly different markets. Ta Mo is doing badly in India, but JLR is rocking. Will they do well in US? will they do well in China?

difficult to answer..however after doing such an analysis you need to do more detailed research. However such a research tells you whether to do further research or no. Such a screen can be built in excel and you can use it as a first step..and eliminate cos. with a low RoE or a low RoCE.

yes you will miss the turn around cases, but lets leave that to Vallabh Bhansali, Rakesh Jhujhunwala and Ramdeo Agarwal…lets concentrate on the big, successful, blue chips and large midcaps….choote chote mein apni aukad nahi…

Of Leyland, M&M and Tata Motors

  1. Dear sir,
    I was trying in Stock market since last 1 year and I have loss a lot of money. Actually m doing job in Indian army so I don’t hv a lot of time for taking any classes for learning about market, I read the books and read blogs and trying to improve ourself.
    Sir I want get knowledge of stock market and want be a good trader or invaste, I want suggestion by you how can I get knowledge of stock market,, if you don’t mind suggest me sir,,
    Sir read ur blogs I am feeling fresh now,, thank you sir

  2. Chandresh, If you don’t have time, why do you want to invest in shares? That is for experts who are willing to invest time and effort. Invest in mutual funds. Learn about MFs,invest and take rest.

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