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How to do stock analysis, both fundamental + technical — complete Hindi guide for Indian stocks.
Published by The Retail Trader · AUG 07, 2026 · Features
How to do stock analysis, both fundamental + technical — complete Hindi guide for Indian stocks.
Stock analysis means studying the financial health, valuation, and price movement of a company — thus deciding whether to buy the stock or not.
Simple definition: > Stock analysis = Company's investigation. Just like a doctor does a checkup, check the financials, valuation, and charts of the stock.
1. Fundamental Analysis (FA):
• What it does: Analyzes the financial health of the company.
• Data: Revenue, profit, debt, margins, ratios
• Timeframe: Long-term (years)
• Best for: Stock selection (which company is good)
2. Technical Analysis (TA):
• What it does: Analyzes price charts and indicators
• Data: Price, volume, patterns, indicators
• Timeframe: Short-term (days-weeks)
• Best for: Entry/exit timing (when to buy)
Best approach: Use both. Select stock from fundamental, decide entry/exit from technical.
Step 1: Understand Business:
• What does the company do? (Business model)
• Where does Revenue come from? (Revenue streams)
• Who are the competitors? (Competition)
• How is the industry? (Sector health)
• Who is management? (Promoter quality)
Revenue (Top Line):
• Revenue growth: 5-year CAGR > 15%?
• Consistency: Is it growing every year?
• Sources: Domestic vs export, product vs service
Profit (Bottom Line):
• Net profit growth: 5-year CAGR > 15%?
• Margins: Operating margin > 15%?
• Trend: Margins improving or declining?
Balance Sheet:
• Debt-to-Equity: < 1 (low debt)?
• Cash flow: Operating cash flow positive?
• Interest coverage: > 3x (can easily pay interest)?
Key Ratios:
• P/E — Good Value: < 20, What It Tells: Valuation
• P/B — Good Value: < 3, What It Tells: Asset value
• ROE — Good Value: > 15%, What It Tells: Profitability
• ROCE — Good Value: > 15%, What It Tells: Capital efficiency
• Debt/Equity — Good Value: < 1, What It Tells: Leverage
• Dividend Yield — Good Value: > 1%, What It Tells: Income
• EPS Growth — Good Value: > 15%, What It Tells: Earnings growth
Step 3: Valuation Check:
• P/E ratio vs industry average
• PEG ratio = P/E / Growth rate (< 1 = undervalued)
• P/B ratio vs book value
• DCF (Discounted Cash Flow) — advanced
Step 4: Technical Analysis:
• Trend: Above 200 DMA? Uptrend?
• Momentum: RSI 30-50 (pullback) or 50-70 (strong)?
• Entry: At Support level? Bullish pattern?
• Volume: Breakout with volume?
Step 5: Risk Assessment:
• Promoter holding: > 50%?
• Pledged shares: < 10%?
• Corporate governance: Clean record?
• Litigation: Any major lawsuits?
Keep these points in mind:
• FUNDAMENTAL CHECKLIST:
• □ Revenue growth > 15% (5Y CAGR)
• □ Profit growth > 15% (5Y CAGR)
• □ Operating margin > 15%
• □ Debt/Equity < 1
• □ ROE > 15%
• □ ROCE > 15%
• □ P/E < Industry average
• □ PEG < 1 (ideally)
• □ Promoter holding > 50%
• □ Pledged shares < 10%
• □ Positive cash flow
• □ Consistent dividend (bonus)
• TECHNICAL CHECKLIST:
• □ Above 200 DMA (uptrend)
• □ RSI 30-50 (pullback entry)
• □ Support level nearby
• □ Bullish candlestick pattern
• □ Volume confirmation
• □ MACD positive
• □ Sector outperforming
• QUALITATIVE CHECKLIST:
• □ Do you understand the business model?
• □ Competitive advantage (moat) is
• □ Management is trustworthy
• □ Industry is growing
• □ Products/services are in demand
• □ Corporate governance is clean
Keep these seven points in mind:
• Screener.in — Purpose: Fundamental screening, Cost: Free + ₹4,999/yr
• Trendlyne — Purpose: Comprehensive analysis, Cost: Free + ₹500/mo
• TradingView — Purpose: Technical charts, Cost: Free + ₹1,499/mo
• TRT SUPERCHART — Purpose: Charting + indicators, Cost: Free
• Moneycontrol — Purpose: News, data, analysis, Cost: Free
• Tijori Finance — Purpose: Fundamental deep-dive, Cost: Free
• Zerodha Console — Purpose: Portfolio analysis, Cost: Free
Debt/Equity > 2 → Company is using more borrowed money. Interest payments will eat up the profit.
3 consecutive years revenue fell → Business shrinking. Turnaround story is rare.
Promoter continuously selling shares → Management does not have confidence in the company.
Promoter has pledged shares → Margin call risk. If the stock falls, there will be forced selling.
Auditor change, related party transactions, SEBI notices → Stay away.
₹1-10 stocks → Mostly manipulated. Operators pump and dump.
Fundamental:
• Revenue: ₹8,00,000+ crore (growing)
• Net Profit: ₹70,000+ crore
• P/E: ~25 (slightly expensive)
• ROE: ~10% (below average)
• Debt/Equity: ~0.4 (manageable)
• Promoter: Mukesh Ambani (50%+)
Technical:
• Price: ~₹2,500
• 200 DMA: Above ✅
• RSI: ~50 (neutral)
• Support: ₹2,300
• Resistance: ₹2,700
Verdict:
• Fundamental: Good company but expensive (high P/E)
• Technical: Neutral — wait for pullback to ₹2,300-2,400
• Action: Accumulate on dips. Hold if already invested.
Keep these points in mind:
• 📌 STOCK ANALYSIS QUICK REFERENCE
• 2 TYPES:
• 📊 Fundamental — Financial health (long-term)
• 📊 Technical — Price charts (short-term)
• FUNDAMENTAL:
• 📊 Revenue growth > 15%
• 📊 Profit growth > 15%
• 📊 ROE > 15%, ROCE > 15%
• 📊 Debt/Equity < 1
• 📊 P/E < Industry average
• 📊 Promoter holding > 50%
• TECHNICAL:
• 📊 Above 200 DMA (uptrend)
• 📊 RSI 30-50 (pullback entry)
• 📊 Support level nearby
• 📊 Volume confirmation
• 📊 Bullish pattern
• TOOLS:
• 📊 Screener.in — Fundamentals
• 📊 TRT SUPERCHART — Charts
• 📊 Moneycontrol — News & data
• RED FLAGS:
• ❌ High debt (D/E > 2)
• ❌ Declining revenue (3 years)
• ❌ Promoter selling
• ❌ Pledged shares > 20%
• ❌ Corporate governance issues
• ❌ Penny stocks
• PROCESS:
• 1️⃣ Understand Business
• 2️⃣ Analyze financials
• 3️⃣ Check Valuation
• 4️⃣ Technical entry dhundho
• 5️⃣ Do risk assessment
Keep these five points in mind:
• What Is the PE Ratio?
• What Is EPS?
• What Is the RSI Indicator?
• Candlestick Patterns Guide
• Nifty 50 Companies List 2026
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.