Fundamental analysis

Hello to all

What is the purpose of learning/doing Fundamental analysis when you know that the company is very good and fundamentally strong.. for eg: ONGC ,SBIN,TCS etc..what information we can get by doing fundamental analysis on these kind of companies

I am very beginner to this so if my question looks so basic then i am sorry..

Thanks in advance

Let me take a shot at this.

Fundamental analysis facilitates the following

1) Monitor health of the company. You say SBIN is good, but forever? So as an investor will I wait for the neighbor to knock at the door with the news, or would I want more control over my business.

2) We get an estimated price at which buying the shares is logical. Various valuation models.

3) We use FInanacial Statements to compare two companies. If you wanna invest in Banks, then why not Axis, Yes or HDFC. You gotta have concrete reasons.

4) Whether its operations suits your risk appetite. Some companies are cyclical in nature.

If someone is investing without referring to Financial Statement and not following them up quarter to quarter then he is misled. In the sense that his odds of success reduce.

I have a cousin who invested in Tata Steel on hearsay. His purchase rate is highest 5% !!

Thank you Jamit for your response..

could you please guide me.. how to or from where to start ..
do we have to start with Fundamental or with Technical..

I have started following stock market from past 6 months and also i have traded few times and till today i lost around Rs 30,000/-

Could you please suggest any book or site to get complete idea....

Thank you

No book, site, person or place can give complete or even correct idea. Most people that advice have lost good and are still losing.

I think what really works in ones favor, is his survival instincts. If it gets evoked every time you have to take a money related decision then that it is the only source you can rely on. TA fails all the time and so does FA. Earning money in stock market is a near impossibility. Keep your money safe.

Yet, you could start learning by reading books.

Check out Craytheon - Fundamental Analysis and Stock Valuation Simplified for learning fundamental analysis.