Sales and Net profit growth

Sales Growth

The basic reason why a company exists is to market and sell a product or service and to make profit from out of those sales/services.

For example,

  • Bajaj Auto sells three wheelers and two wheelers
  • Infosys sells software services to its clients both within and outside India.
  • Bharat Petroleum makes most of its revenues and profits from sale of Petrol and Diesel.

From an investment perspective, we are interested in those companies that can increase their sales year after year and quarter after quarter. The trend should be an increasing one. Their business model slot bonus new member 100 di awal to 7x and their product should not be an easily replicable one. The more the barriers to entry, the better it is for the company. The company itself should be in a position to increase the prices of its products without losing customers. This can happen only if the quality of the product/service offered by the company is world-class and Supreme.

As an investor, we should be in a position to understand the utility of the product/service a company sells and the business that the company is in. If we cannot explain in clear terms what their products/services are and how it benefits their customers, then we are better off by not investing in such companies.

Besides, we are on the lookout for the companies that develop products which can meet the needs of people not only within India but also elsewhere. A company that has both domestic and international presence would be an ideal investment choice for further analysis.

Therefore, sales growth Slot Online is the most influential factor when analyzing companies listed on the stock market. The higher the sales growth, the better are the chances for the company to survive odds and bad economic situations.

At the same time, we are not interested in companies that spend heavily on Research and Development activities.

Sales can be Organic and Inorganic. Organic sales are revenues generated from the Core business of the company. Inorganic sales can be mostly from non-core activities such as investment income and from acquisition of companies Situs Slot Gacor in unrelated business.

At, the Indian companies with Sales growth over the last five years of greater than 25% have a better rating than the other companies where the sales growth is, say, less than 5%. Our rating system identifies companies that can keep growing their sales numbers rapidly and at higher rates.

Net Profit Growth

Sales growth is of no use if the increase in sales do not result in an increase in profit. Besides, a rupee of sales should lead to higher rupees of profit. This is the net profit margin.

Increase in Net Profit is a result situs judi slot bet kecil of two factors –

  • Curtailing costs and
  • Increasing the price of products or volume of products sold.

The companies that increase their net profits by cutting costs cannot sustain it over a long period of time. Net profit increase through cost cutting shouldn’t be seen as a good sign. While cutting costs is absolutely essential, but increase in net profits which do not show and which are not as a result of increase in sales should not be favored. This cannot continue for long as there is a limit to how much costs can be cut.

We are most interested in investing in companies which show a growing Sales and also net profit trends. Net profit is what is left out after meeting all costs including finance and Selling costs.

Net profit is a variable that can be affected by changes in cost structure, price and volume changes of the products or services that the companies sell.

At, we rate companies based on how well the net profits have grown over the past five years. We focus more on companies that are not only able to increase their sales and net profit but also the net profit margins year after year and quarter after quarter.

Ratings are extremely important because unless we rate companies based on several factors, it would be difficult to identify the best companies from out of 3000+ companies traded on the Bombay Stock Exchange (BSE) and National Stock Exchanges (NSE)

Margin of Safety – Never overpay for any stock

Margin of safety ensures that you would substantially cut down your losses should the market go down and similarly you would give yourself a chance to make huge gains when the stock markets go up.

Predictions can go wrong; the factors based on which the analyses were made might change over time; a product on the development of which the company spent a lot of money during research and development might not materialize and make as much money as envisaged. In all these cases, building adequate margin of safety into the buying price would ensure that the possibility of loss is greatly minimized.

We should always know what is the right price to pay for any stock. The right price to pay can be arrived at using simple formulas. Our product recommends highly profitable companies for buying. It also contains the right price that should be paid for such stocks. Until the stocks reach those prices, you would do well to add them to the watchlist and once it reaches that price, it would be the time to buy.

Our analysis and the rating system ensures that you buy only best companies at attractive prices.

The Power of Compounding

Albert Einstein is reputed to have said ” Compounding is the eighth wonder of the world. He who understands it earns it and he who doesn’t, pays it”. It is this power of compounding that helps one earn huge sums of money in the long run. Time is one of the crucial factors in compounding as also the rate at which we are able to compound.

The more years we have on our side, the greater our ability to compound. At, it is our intention to identify stocks that can compound your investments at high rates of return over significantly long periods of time. We do this by identifying, analyzing, rating and recommending stocks of great Indian companies at attractive prices that contain a substantial margin of safety. These will have to be held by an individual investors for long term.

Product Info

India Stock Ideas Pro Plan : This gives one complete year access to our monthly recommendations.

India Stock Ideas Starting Plan : This gives access for three months to our monthly recommendations.

India Stock Ideas Popular Plan : This gives access for Six months to our monthly recommendations.


When you buy any of these plans, you will get access to download an excel file.

The excel file contains this information for top 20 stocks based on Overall rating of all stocks traded on BSE and NSE.

  • The name of the company
  • BSE Ticker Code
  • NSE Symbol
  • Industry it is in
  • Current Market Price as on the date of Publishing
  • Price that you should pay (This covers a margin of safety of 40%)
  • Overall Rating (Out of a total of 100 points): This is a summation of all Individual Ratings
  • Sales , Sales growth 5 Years and Sales Growth Rating
  • Net Profit, Net Profit growth 5 years and Net Profit Rating
  • Earnings per Share
  • Operating Profit Margin, OP margin rating
  • Net Profit Margin Last Year  , Net Profit Margin Rating
  • Net Profit Margin current Quarter , NPM Current Quarter Rating
  • Dividend Yield and Dividend Yield Rating
  • Price To Earnings and PE Rating
  • Average Return on Equity 5 Years, and its rating
  • Average Return on Equity 3 Years and its rating
  • Debt to Equity and its rating
  • Face Value
  • Price to Book value and its rating.