New to reading a company?
Read a company like a pro. In plain words.
- Short lessons on the numbers behind a stock
- Pictures and a made-up company to practise on
- If you've finished 10th class, you're ready
Start here
11 numbers that explain any company
Each answers one simple question. Go in order, or jump to the one you need.
Is it making money?
Profit
Is it using money well?
Efficiency
Is it getting bigger?
Growth
Can it survive a bad year?
Safety
Is the share price fair?
Price
- Lesson 9: Price-to-Earnings Ratio (P/E)How much are you paying for each rupee the company earns?
- Lesson 10: Price-to-Book Ratio (P/B)How does the share price compare with the owners' money on the company's books?
- Lesson 11: Dividend YieldHow much cash does the share pay you each year for the price you pay?
Read by sector
Different businesses, different numbers
A bank's raw material is money; an IT firm's is people. Each guide shows which numbers to check, and which ones mislead.
Banks
Their raw material is money, so they need their own set of numbers.
NIM · Gross NPA · CASA · Capital adequacy
IT services
Their product is people's time, sold mostly to clients abroad.
Sales growth · Operating margin · Attrition · ROE
Pharma
Medicines for India and the world, with regulators watching every factory.
Sales growth · Operating margin · R&D spend · ROCE
FMCG
Everyday products like tea, soap and biscuits, sold in every town.
Sales growth · Operating margin · ROCE · ROE
Bank numbers
Numbers only banks have
- Net Interest Margin (NIM)How much does the bank earn on the money it lends, after paying its depositors?
- Gross NPA RatioHow many of the bank's loans aren't being repaid?
- CASA Ratio (CASA)How much of the bank's money comes from cheap everyday accounts?
- Capital Adequacy RatioDoes the bank have enough of its own money to absorb losses?
Sector numbers
Numbers that matter in one industry
For learning only. Example companies are made up, and the rough guides are rules of thumb, not targets. Nothing here is advice to buy or sell any stock.