Good combination of P/E ratio (~6) and Dividend Yield (>5%).
Consistent dividend, increasing with raise in EPS.
SHP: Promoters >50%
D/E ratio: Close to 0 (0.0-1.0)
BV close to CMP (BV/CMP < 1 is good)
MP less than mid of 52week Hi-Lo. (Close to 25% range: Downside risk for the investment is relatively low)
Better Year-over-Year results (Quarter-on-Quarter are appropriate only for a few Indian companies)
Sales and Operating Profit proportional to Expenditure (consumption of Raw-material)
Consistent allocation for Depreciation and Tax
Interest (Finance Charges) in control
Other income negligible, if not none
- Management team's background, track record
- Intrinsic Value of the company: Assets & investments accumulated over years, Domain knowledge specialization, Barrier-to-entry.
- Zero debt
- FEMA company, for excellent Dividend Yield
- Sufficient volume for regular movement, liquidity
- Growth and associated plan to handle competition (new factory, JV, etc)
- Peer companies
- Weighted Average to "support" MP:
- Sweet spot: Increasing MP that brings 200DMA, Current VWAP and MP all very close.
- Weighted Average slightly below Price. (MP climbing up, closing the gap between Weighted Average and MP).
- Capital Efficient Business: See "Efficiency Indicators" in "Finance & Investments Terminologies".
- Company shows Growth, which is characterized by both, increase in Sales and increase in Profit.