Few tips:
• 52 Week High / Low or Lifetime High or low have not much relevance. You can observe it / study it but,
A stock ( company) which is doing well will continue to make Life time highs.
• Stock Market investing is an ART and not a Science. Here 2+2 is not equal to 4.
Just as beauty can be appreciated and definition of beauty differs from person to person, similarly valuation of a company is not fully dependent on the financial figures. You can study them, but it is just one aspect.
• Again, I am reiterating, PSUs are not companies but Govt departments. Govt treats them like that only. Profitability is never a priority. Hence valuations are also like that only. Almost 15 years ( leave last 2 years) , PSUs did nothing. In fact, wealth was lost in PSUs.
• Don't write off Banks and NBFCs. As GDP of India rises, where will the money go? At what price you can invest in a stock is a difficult decision.
• Stock Market looks at the future and not on the current or past. For case study you can research Genus Power and Infra or Zomato. Study their balance sheets, P&L, all types of ratios; slice and dice them; you will get nothing much. But see the price. The valuation is due to the future likely growth and profits. In fact, both have created a moat.
That's all.
