A recently qualified Chartered Accountant, sharing my knowledge and opinions
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To get listed on a stock exchange, an unlisted company must meet certain IPO criteria. These include being registered under the Companies Act, having audited financials, minimum net worth and profit track record, and complying with SEBI and stock exchange regulations. The company must also ensure transparency, face no insolvency or regulatory issues, and meet disclosure norms. Meeting these conditions is essential to qualify for an IPO and enter the public market.
Tata Capital is preparing for its IPO and rights issue, aligning with RBI regulations and capital expansion plans. The IPO is expected to be ₹15,000 crore, making it one of Tata Group’s largest. While Tata Capital leads in market cap, its high debt-to-equity ratio (6.5 vs. industry 3.49) and lower ROE (13.53% vs. industry 15.29%) raise concerns. The P/E ratio of 108.78, significantly above the industry average of 10.92, suggests potential overvaluation. While long-term investors may benefit from its Tata Group backing, short-term investors should be cautious due to valuation and debt risks.
A stock screener is a tool that helps investors and traders filter stocks based on criteria like price, market capitalization, P/E ratio, and debt-to-equity ratio. It simplifies stock selection by narrowing down options to match investment strategies. Sharescart’s Stock Screener offers an efficient and user-friendly way to customize filters, analyze stocks, and make informed decisions. While stock screeners are powerful, investors should also consider qualitative factors for a well-rounded investment approach.
Investing in unlisted shares offers diversification and high potential returns but comes with risks. Shares can be bought via pre-IPO deals, ESOPs, promoters, PMS/AIF schemes, or platforms like SharesCart. Careful research and risk assessment are crucial for success.
Fundamental analysis helps investors assess a company true value by examining financial statements, industry trends, and macroeconomic factors. It focuses on long-term growth, risk reduction, and informed decision-making. By evaluating key financial ratios, management quality, and competitive advantages, investors can make strategic investment choices.
