Reporting repeated profits but no dividend and tax

#1
Hi,

I am very new to investing and trading world! And a science student with no Accounting/Commerce background.

Could anyone please help me understand, if a company is reporting repeated profits but paying no dividend and tax (for example, check this link), from the Financial reports can we figure out what the company is doing with its profits?

Please also suggest books/methods for learning fundamental analysis.

Thank you
 

Einstein

Well-Known Member
#2
Investing in penny stock is speculation and not investing, invest in a healthy company with strong balance sheet.
bty, your answer deferred taxation account.
 

sabkaview

PHYSICAL SHARES consultation
#5
Hi,

I am very new to investing and trading world! And a science student with no Accounting/Commerce background.

Could anyone please help me understand, if a company is reporting repeated profits but paying no dividend and tax (for example, check this link), from the Financial reports can we figure out what the company is doing with its profits?

Please also suggest books/methods for learning fundamental analysis.

Thank you
 

sabkaview

PHYSICAL SHARES consultation
#6
You may observe 3M INDIA LTD which had a public issue in February 1992 @par face value rs 10. in this 27 years the company has never paid any dividend ,no split ,no bonus ,no rights but market price is around 26000 per share. huge long term capital appreciation to shareholders .
normally such company and companies like mrf ,shree cement ,bosch ,eicher motors ,page industries etc use the cash surplus for capex etc as most of this companies do not even go for buyback of shares .
 

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