Making sound investment choices in the Indian stock market is not just about luck. It takes a proper understanding of the markets via research, and the research you will need to start doing is fundamental analysis. Fundamental analysis is the commitment to looking at a company's financials to determine its intrinsic value. But going through the thousands of financials can be burdensome and very time-consuming.
This is where all the different types of fundamental analysis software available can help. These programs can make fundamental analysis easier and help you find potential investment opportunities by searching and analyzing stocks pretty quickly and easily. In this blog post, I will share some of the best fundamental analysis software for the Indian stock market, describing the purpose of each, and help you determine what will work best for you.
Why Fundamental Analysis is Important for Indian Investors?
Before we look at the tools, it might be useful to briefly review why fundamental analysis is the backbone of any sensible investing strategy. Fundamental analysis, as an exercise, explains the "why" behind a stock price using the data from the company's revenues, earnings, assets, and liabilities. With a thorough analysis of these factors, an investor can execute a value assessment of whether a stock price is low-priced or high-priced. Being able to carry out these steps is fundamental to building wealth for the long term.
Unlike technical analysis, which is all about price charts and patterns, fundamental analysis considers the big picture. If you're curious to know more about what makes them different, check out our blog on the difference between Technical and Fundamental Analysis.
A good fundamental analysis software will give you plenty of data, including the financial statements, key ratios, and historical performance, in order for you to make an informed analysis. You can find comprehensive programs in our Advanced Fundamental Analysis Course.
Top Fundamental Analysis Software for the Indian Market
Below you will find a summary of the best stock fundamental analysis software for beginning investors in India and for seasoned investors.
1. Screener.in
Screener.in is probably the best-known fundamental analysis software amongst Indian investors, and it is the most respected one as well. Imao this software is famous for being the most powerful and most customizable stock screener in India.
Key Features:
Custom Screens: You can use an extensive range of financial parameters to create your own filters, such as P/E ratio, Return on equity (ROE), Debt to equity, etc. I think this is a great tool to find stocks based on your particular investment strategy.
Detailed Financials: The platform not only gives consolidated/standalone financials, but also gives the last ten years of financials, including balance sheets, profit and loss statements, and cash flow statements.
Peer Comparison: Compare company performance against competitors easily.
Export to Excel: Export all data into an Excel sheet for analysis.
Pricing: Freemium. The free version is substantial, but the paid "Premium" plan offers features like custom columns, unlimited alerts, and priority support, for ?4,999/year.
Best For: All investment levels. Especially useful for investors who want to build their own custom screens and do intensive research.
2. Tickertape
Tickertape is great for the novice or intermediate investor. I am a fan of their clean and simple user interface and breaking down complex data to make it easier to understand.
Key Features:
Stock Screener: Has an intuitive screener with the ability to set pre-packaged filters and a ton of parameters.
Investment Checklists: In your checklist, Tickertape has a checklist that clearly establishes how the stock could be financially assessed based on its financial health, valuation, and performance.
Market Mood Index (MMI): This distinctive feature measures the current market sentiment (Greed, Fear, etc.), and it can act as a behavioral finance tool. To understand how to use it effectively, read our Market Mood Index guide.
Forecasts and Analysts' Opinion: It provides analyst forecasts for future revenue, EPS, and price.
Pricing: Freemium. The free version is a good first step, but the paid "Pro" plan gives you access to advanced filters, more data, and an ad-free experience. The yearly plan costs ?2399.
Best For: Beginners wanting an intuitive tool to start basic fundamental analysis.
3. Trendlyne
Trendlyne is a robust tool to conduct fundamental analysis along with actionable insights and its own set of proprietary scores. It's a handy tool for those wanting to go a little deeper than just standard data.
Key Features:
DVM Score: A proprietary score that grades a stock based on its Durability, Valuation, and Momentum. It's a quick pulse of a company's health.
Forecaster: It provides analyst estimates and price targets, helping you predict future growth.
Stock Screeners: It offers more than 1,400 parameters to build your own powerful stock screens.
Watchlist and Alerts: You have the ability to set up alerts in real time, based on various parameters, for your watchlist.
Pricing: Freemium. Subscription plans begin at ?6.98 per month (for the basic plan) and add access to data (including technology, tourist info, and more).
Best For: Investors who want news from well-respected local journalists and newsrooms.
4. Moneycontrol
Moneycontrol is a popular and comprehensive financial portal that offers a lot of information, from real-time news to company financials.
Key Features:
Extensive Data: Many key financial ratios and summaries, number of analyses and management shareholding patterns, and other corporate actions.
Market News: Up-to-the-minute news, reports, expert views, and interviews that are all important to fundamental research.
Forums: A vibrant user community that holds forum discussions about stocks and ideas.
Pricing: Freemium. A "Moneycontrol Pro" subscription includes all the advertising, plus the advantage of premium research reports, live organizational charts. Annual rates are ?1999. However, there may be promotions for cheaper rates.
Best For: Investors who are interested in a single location facilitator for daily news and data, who desire to see company news.
Conclusion
The best fundamental analysis software option for the Indian stock market is not likely to be a one-size-fits-all option. Your personal choice depends on your investing style, investing experience, and the amount of money you have.
If you are New Beginning: If you're brand new, I'd start with Tickertape or the free versions of Screener.in or Moneycontrol to familiarize yourself with the data, investing concepts, and some new vocabulary.
If you are an Intermediate Investor: Choose Screener.in so you may keep your head above sea level with powerful data.
For Advanced Investors: Trendlyne provides the sophisticated tools and proprietary insights you might need to find an edge.
Remember, a tool is only as good as the person using it. These platforms are designed to assist you, not make decisions for you. Always perform your own due diligence before investing.
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