SAMCO Data Bank – a solution for Fundamental Analysis of Stock Market !

How to invest in stock market using SAMCO Data Bank?

SAMCO has prepared a powerful data bank. These are meticulously prepared single sheet snap shot of the entire consolidated financial position of a company giving a comparative view of the financial strength of the present and past of as many years as possible, to understand the broad picture of the performance of the company. The Data Bank is user friendly and immensely helps in taking quick and reliable decisions, along with readily computed most relevant and smart decision making ratios for our customers to keep them at par and give them a level playing field with institutional investors in terms of data availability and interpretation thereof. Such data otherwise, would cost an investor a ton of money but it is for free with SAMCO.

How to interpret:

The data is presented in such an informative tabular format that one can immediately judge the health of a company just by looking at its revenues, profitability ratios, dividend payouts, growth rate, debt/equity ratios, operational efficiencies etc. The data is collated in common sized, consolidated financial format to enable comparison of all companies as far as possible of all listed companies on NSE. Consolidated data gives a complete picture of the company, as against standalone, which sometimes portrays half truth when companies have numerous subsidiaries. Leading websites give standalone data but consolidated data of such large periods are rarely available for free. There are many ways of looking at the data but we shall highlight below some of the most sought after and intelligent ways of interpreting:

Sales and Sales growth rate: The top line or the sales of the company and its growth rate indicates how the company is capturing growth opportunities in the segment it operates. Higher the sales growth rates ideally above 15% plus, higher the possibilities of price appreciation in the stock markets. Biggest wealth creating stocks have above average sales growth rate compared to its industry peers conversely higher the sales growth momentum, faster the price appreciation.

EBITDA , Net Profit Margins, Growth, Delta or change in margins: The company is ultimately judged by its bottom line, how efficiently it is managed, how well it is growing keeping costs under control leading to increased margins i.e. positive change in Delta and its growth rate etc. Higher the margins vis- a- vis other peers in the industry, sounder and stronger the company is. Stronger the growth rate in profits year after year greater the capital appreciation of the stock and vice versa for capital erosion. All great wealth creating companies have high profit growth rate, ideally 15% plus coupled with above average profit margins.

Free Cash Generation: This is an important but independent way of looking at the company, whether it is able to generate free cash flow for its shareholders. Often the company may have good profitability but at times may not be able to generate free cash flow, either because of continuous increase in debtors or high inventory or re-investments in the expansion, end result being, shareholders do not receive benefits in the form of dividends. All great wealth creating companies have the ability to generate free cash flows over a long period of time.

Debt / Equity ratios: Debt has the power to magnify the returns either upwards or downwards and hence causes lot of wild fluctuations in the long term stock prices. Debt means long term borrowings of the company and equity means owners funds which includes all past accumulated reserves. Debt/Equity is the ratio calculation, lower the better. However the consistent wealth creating stocks have minimum or negligible levels of debt in the company.

Return on Common Equity or Return to Shareholders: This is the most important ratio which tests the viability of the very existence of the company. It is calculated by dividing Profit after GST with shareholders funds. All the biggest wealth creating stocks have return on common equity 16% or above which also justifies their existence otherwise what is the need to carry on the business and take risk when investors can get the same risk free returns from the banks.

Dividend Payout Ratio: The companies in their routine business operations generate profits, deploy them for reinvestments and partly distribute to the shareholders in the form of dividends. All the biggest wealth creating stocks typically have high dividend payout ratio of 20% plus, higher the payout ratio higher the chances of capital appreciation.

Conclusion: SAMCO team just recommends every client, to look, at least once, before investing in any company, and even by simply doing this, millions of hard earned money of investors will be saved and we hope through our data bank he/she will be much smarter and will be able to take intelligent decisions and remain way ahead of others.

Eg of One Company showing all of above: Amara Raja Batteries Ltd

12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months
Period 31-03-2014 31-03-2013 31-03-2012 31-03-2011 31-03-2010 31-03-2009 31-03-2008 31-03-2007 31-03-2006 31-03-2005 31-03-2004 31-03-2003 31-03-2002 31-03-2001 31-03-2000
In Million's of Indian Rupee
Revenue 34517.5 29786 23644.68 17610.53 14644.82 13131.79 10833.26 5958.02 3636.71 2363.77 1759.02 1736.53 1882.2 1550.13 1314.86
yoy growth 15.88 25.97 34.26 20.25 11.52 21.22 81.83 63.83 53.85 34.38 1.29 -7.74 21.42 17.89 -
Gross Profit 11684 9871.3 6658.76 5168 5214.85 3932.23 3761.68 2174.85 1429.51 882.4 814.46 827.47 792.8 676.87 597.1
% margin 33.85 33.14 28.16 29.35 35.61 29.94 34.72 36.5 39.31 37.33 46.3 47.65 42.12 43.67 45.41
EBITDA 5754.2 4704.8 3400.33 2582.34 2888.64 2022.72 1782.02 815.2 461.42 209.37 94.75 208.28 278.58 248.06 254.24
% margin 16.67 15.8 14.38 14.66 19.72 15.4 16.45 13.68 12.69 8.86 5.39 11.99 14.8 16 19.34
Operating Profit 5069.7 3952.3 2931.21 2156.64 2443.89 1650.6 1532.3 645.17 314.39 73.06 -28.31 91.28 194.52 179.73 201.58
% margin 14.69 13.27 12.4 12.25 16.69 12.57 14.14 10.83 8.64 3.09 -1.61 5.26 10.33 11.59 15.33
Net Income 3674.4 2867.1 2150.63 1480.96 1670.33 804.79 943.63 470.43 238.47 86.9 13.9 74.01 182.23 205.32 195.36
% margin 10.65 9.63 9.1 8.41 11.41 6.13 8.71 7.9 6.56 3.68 0.79 4.26 9.68 13.25 14.86
EPS (GAAP) 21.51 16.79 12.59 8.67 9.78 4.71 5.52 2.75 1.4 0.51 0.08 0.43 1.07 1.31 1.27
yoy growth 28.16 33.31 45.22 -11.35 107.58 -14.71 100.6 97.28 174.4 525.23 -81.22 -59.39 -18.52 3.28 -
Dividends per Share 3.23 2.52 1.89 1.3 1.45 0.4 0.23 0.23 0.17 0.13 0.1 0.1 0.23 0.23 0.2
yoy growth 28.17 33.33 45.38 -10.34 262.5 71.42 0 40 25 33.34 0 -57.14 0 16.67 -
Capital Expenditures - 745.75 873.48 518.56 684.71 1290.6 570.05 699.73 243.92 94.56 70.65 111.96 433.86 193.98 152.83
Free Cash Flow - 2286.06 1889.21 -75.83 1389.51 1033.12 -780.76 -1103.86 -0.33 -44.48 -23.48 74.75 -189.52 -227.07 -46.17
Cash & ST Investments 2945.7 4094.68 2283.19 443.18 621.42 699.83 511.45 256 205.21 169.12 152.29 153.03 98.58 310.21 316.02
Total Assets 21394.4 17704.7 13515.17 11159.2 9755.53 8940.17 8457.27 5292.11 3692.32 2809.79 2400.42 2445.86 2426.06 2246.54 1858.05
Total Debt 843.3 871.76 840.76 901.12 272.95 2291.28 3162.62 1407.08 405.41 233.06 148.8 97.37 133.68 199.23 127.84
Total Equity 13627 10598.14 8234.69 6459.27 5436.43 4055.86 3331.01 2436.66 2012.85 1806.85 1745.92 1751.29 1696.55 1669.45 1393.47
Return on Assets 18.8 18.37 17.43 14.16 17.87 9.25 13.73 10.47 7.34 3.34 0.57 3.04 7.8 10 -
Return on Common Equity 30.34 30.45 29.27 24.9 35.19 21.79 32.72 21.15 12.49 4.89 0.79 4.29 10.83 13.41 -
Enterprise Value (EV) 65266.05 43673.65 23585.87 16663.78 13675.23 4721.59 13791.01 5027.39 2867.72 1107.6 647.3 489.8 - - -
# of Employees - 3467 3202 2999 2493 2111 1874 1584 1300 - - - - - -

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