Stock Valuation of Top Indian Stocks

SL Name Current Price (Rs.) Intrinsic Value (Rs.) Grading (Scale of 1 to 100)
Price Valuation Fundamentals Profitability Price Growth (10Y) Overall
1 Oil India 350.1 1,700.0 94.5 43.3 59.0 5.9 66.0
2 Idea Cellular 73.8 257.8 93.3 43.2 43.1 0.0 63.6
3 MRF Ltd. 63,741.0 62,025.0 92.7 92.3 82.5 100.0 91.9
4 P&G 8,620.0 3,052.0 35.0 94.0 97.0 100.0 68.0
5 NHPC 27.8 99.1 98.3 67.0 45.0 78.0 79.0
6 ABB India 1,370.0 508.0 36.0 78.0 31.0 100.0 55.8
7 Colgate 1,087.0 303.0 28.0 60.0 100.0 100.0 51.6
8 Bharat Forge 642.0 334.0 51.0 75.0 68.0 100.0 64.7
9 DLF 171.0 -50.0 5.5 48.0 36.0 47.0 28.0
10 Sun TV 781.7 223.0 31.4 84.0 96.0 100.0 62.0
11 Rural Electri. Corp 155.6 595.0 95.0 47.0 70.0 100.0 74.0
12 BHEL 85.0 13.9 20.0 39.0 32.0 0.0 28.0
13 TVS Motors 660.0 133.0 23.0 85.0 57.0 100.0 55.0
14 Havells 509.0 97.0 20.0 64.0 79.0 100.0 47.0
15 Container Corp 1,332.0 293.0 25.0 61.0 63.0 100.0 47.0

* Updated in October’2017

Want to learn the process of stock valuation?

Stocks whose overall rating is above 85/100 can be considered good.

Here I present to you the stock valuation of few top stocks.

The stock analysis worksheet tool brakes the overall valuation of stocks between (1) Price Valuation, (2) Business Fundamentals; (3) Profitability & (4) Price histrory

A highly profitable company which has strong business fundamentals is considered good for investing.

But it is equally important for investors to judge stocks based on its price valuation. Hence this worksheet also values stocks by estimating its intrinsic value.

Explanation:

MRF

Current Price

In terms of current market price of MRF, it scores a grading of only 92 of 100. It means that stock is currently trading at undervalue price levels.

Over all Business Fundamentals

In terms of business fundamentals of MRF, it scores a grading of 93 of 100. It means that MRF has one of the best business prospects in the industry.

Business Fundamentals – Profitability

In terms of profitability of MRF, it scores a grading of 82.5 of 100. It means that MRF’s profitability as compared to other companies in Indian market is fairly high.

Technical Analysis – Price Groth over 5 Years

In terms of price growth of MRF in last 5 years, it scores a grading of 100 of 100. It means that market price of MRF stocks has grown at a faster rate compared to the risk free rate and standard risk premium.

Overall Grading of MRF

In terms of overall grading of MRF, it scores ~92 out of 100. By all means the rating is very good.

[P.Note: As a rule of thumb, stocks which earns grading of 85+ shall be considered as good]

How we can use this worksheet

This worksheet works like a litmus testing.

Whenever a stock comes to our attention, the first thing we must do is to take a note of it in our phone.

Every 15 days, we must make sure that we have at least 3 stocks worth an analysis.

At the end of fifteenth day, we shall open the stock analysis worksheet to analyze these stocks.

The idea is to judge the stocks based on its pricing, business fundamentals & price history.

The stock which fares well overall (85+/100), becomes a good buy.

This is also true that this worksheet does not rate many stocks as good. Its criteria are perhaps very stringent. There will be not many stocks which will earn 85+ grade.

But this is not a point to get disheartened.

Just keep saving your money till the buy opportunity comes. At other times, keep yourSIP in mutual funds going in full flow.

Buying stocks only where there is opportunity is the best strategy. One cannot buy stocks all the time.