Rating of company is a different game than assesing it merely on the basis of promoter' holding.
If Harshad mehta holds 75 % in the company you would be better off without it. On the other hand if Ratan Tata has 75 % you would jump in. That is how he build TCS long before going to IPO.
Promoter's holding is one of the factors which go into rating a company.There are other factors each assigned weightage as per their importance.
1. The Sectors in which it is working
2. How good is financial parameters.
3. Growth prospects
4.Current earning growth, cash flow, equity debt ratio etc.
5.If Pays dividend
6. price history
7. EPS, PE and book value.
8. Risk factors
9. Policy directions of the Govt.
10. FII/FDI involvement
11.Labour relations
12. Brand image
13. Products performace
If Harshad mehta holds 75 % in the company you would be better off without it. On the other hand if Ratan Tata has 75 % you would jump in. That is how he build TCS long before going to IPO.
Promoter's holding is one of the factors which go into rating a company.There are other factors each assigned weightage as per their importance.
1. The Sectors in which it is working
2. How good is financial parameters.
3. Growth prospects
4.Current earning growth, cash flow, equity debt ratio etc.
5.If Pays dividend
6. price history
7. EPS, PE and book value.
8. Risk factors
9. Policy directions of the Govt.
10. FII/FDI involvement
11.Labour relations
12. Brand image
13. Products performace
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