I get emails and sometimes comments asking for my opinion on stocks. I am thinking of doing, twice a month post, analysing all such stocks sent to me via emails or comments.

Please feel free to leave the stock names through either an email to my id – rohitc99@indiatimes.com or via a comment. I will consolidate the names over 2 weeks and post a quick analysis on each one of them.

However you have to keep in mind the following filter criteria I use to analyse stocks. Stocks which don’t meet these criteria are generally rejected by me without spending too much time on them.

  1. Debt/ equity ratio <= 1
  2. ROE over a 3-5 year period of more than 12%
  3. No losses for more than 1 year in the last 5-7 years
  4. Mcap of more than 20-30 Crs (can be relaxed)
  5. No obvious fraud by the management in the past
  6. PE not more than 40

 If the fundamentals are poor, or valuations too high I tend to move on and not spent too much time on it. If like me, you need 10-15 stocks in the portfolio, there is no need to spend time in figuring out a difficult idea when there are easier ones available.

 A lot of times stocks may have good fundamentals and may be slightly undervalued. In such cases I tend to put the stock on  a watch list and would follow it till it becomes undervalued (50% of intrinsic value). Some of the stocks you may mention may land in such a bucket. It does’nt mean that I don’t find value in the stock, just that it is not cheap enough for me.

 So please leave names of stocks you want me to look at. If I get sufficient response, I will try to make it a regular effort on the blog.

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