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Wednesday, December 22, 2021
Wednesday, December 15, 2021
Fundamental Analysis vs Technical Analysis
We have seen that, the Indian share market is quite sensitive and volatile, making it lucrative if you time it right! But, who has ever timed it right? No one in any corner of the world can say they figured out the stock market in the correct direction as it is depending on so many factors with in the country and around the world.
So, what can one get?
Perhaps, just a logical explanation of what could happen next. Depending upon your investment horizon, you could be hopeful that your investments work out in the long run or the short run.
When you are looking to invest in the longer run, you do fundamental analysis. However, for those who are into trading, be it intraday or within a couple of days, you are looking at more technical analysis.
Meaning & Definition
Fundamental Analysis
Fundamental analysis evaluates stocks by attempting to measure their intrinsic value. Fundamental analysts study everything from the overall economy and industry conditions to the financial strength and management of individual companies. Earnings, expenses, assets, and liabilities all come under scrutiny by fundamental analysts.
The below picture shows how Fundamental analysis operates in stock buying process.
The Fundamental Analysis assesses all the factors that have the capability of influencing the value of the security (including macroeconomic factors and organization-specific factors), called as fundamentals, which are nothing but the financial statements, management, competition, business concept, etc. It aims at analyzing the economy as a whole, the industry to which it belongs, business environment and the firm itself.
Technical Analysis
Technical analysis differs from fundamental analysis, in that traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock's price and volume. The core assumption is that all known fundamentals are factored into price, thus there is no need to pay close attention to them. Technical analysts do not attempt to measure a security's intrinsic value. Instead, they use stock charts to identify patterns and trends that suggest what a stock will do in the future.
The below picture shows how Technical analysis operates in stock buying process.
The price at which the buyer and seller of the share, decides to settle the deal, is one such value which combines, weighs and expresses all the factors, and is the only value which matters. In other words, technical analysis gives you a clear and comprehensive view of the reason for changes in prices of a security. It is based on the premise that the price of share move in trends, i.e. upward or downward, relying upon the attitude, psychology and emotion of the traders.
Both methods are used for evaluating the stock and prediction of future stock prices. Still, while fundamental analysis focuses on the intrinsic value of the stock, technical analysis focuses on the past trend of the price movement of stock.
How to Do Fundamental Analysis of a Stock?
Here are some necessary steps to start a fundamental analysis of a company
Understand the company, its operations, business model, etc.
Use the financial ratios for initial screening.
Closely study the financial reports of the company.
Find the company’s competitors/rivals and study them.
Check the company’s debt and compare it with rivals.
Analyze the company’s prospects.
Tools of Technical Analysis
Charts
Volume charts are one of the most widely used technical analysis tools that show the number of shares bought and sold in the market during a day. You can either use a bar chart or candlestick chart for tech analysis. Used in tandem with trendlines, charts facilitate this exercise to a great extent.
Momentum Indicators
They are statistical figures calculated based on stocks’ price and volume data. During technical analysis, momentum indicators act as supporting tools to charts. One of the objectives of technical analysis is to confirm your views about a stock and momentum indicators help you do it with ease.
Moving Averages
Another technical analysis tool, with moving averages you can eliminate sharp and frequent fluctuations in a stock chart. Note that sometimes there could be sharp movement in stock prices within a short period. This makes it difficult to predict the trend. Moving averages help remove its impact and make the trend more prominent.
Finally, we can conclude that, in the future it is likely that the various forms of analysis will increasingly be combined. The field of quantitative investing has rapidly gained recognition in the asset management industry due to its more scientific approach. Technology now allows fundamental, technical and quantitative analysis to be effectively combined, and tested. Increasingly, behavioral finance and market sentiment are being incorporated in algorithmic trading strategies. And, new technologies like artificial intelligence and big data can also enhance all three forms of analysis.
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Saturday, December 11, 2021
Infosys Technologies Ltd – The Global IT Giant
History of Infosys
The Infosys came into existence in 1981, in Pune which was founded by Mr.N.R.Narayan Murthy, with his team Nandan Nilekani, NS Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora, all former employees of Patni Computer Systems.
Infosys Founders
The company was started with meager initial capital of Rs 10,000 and was named Infosys Consultants. Murthy borrowed the sum from his wife Sudha Murthy. The front room of Murthy's home was the company's first office, although the registered office was Raghavan's home.
Infosys did not have a computer till 1983, because Murthy could not afford to bring an imported option he liked. It took almost two years to get a computer on their own. It was a Data General 32-bit MV8000.
Nagavara Ramarao Narayana Murthy, popularly known as Narayana Murthy or NRN Murthy was born on August 20, 1946, in Mysore, Karnataka. Despite being born into a middle-class family and facing several other hurdles he showed significant academic brilliance during his childhood.
Narayana Murthy received his Bachelor’s degree in Electrical Engineering from the University of Mysore and went on to pursue his Masters at the prestigious Indian Institute of Technology, Kanpur. After completing his education Narayana Murthy went on to work as a Research Associate at IIM Ahmedabad.
The company grew slowly until the early 1990s, when the Indian government’s decisive move toward economic liberalization and deregulation contributed to dramatic growth in the country’s high-technology and computer sectors. Murthy aggressively expanded his company’s services and client base, negotiating deals with many overseas businesses to provide them with consulting, systems integration, software development, and product engineering services. By 1999 Infosys had joined NASDAQ, becoming the first Indian company to be listed on an American stock exchange. The following year Asia week included Murthy in its Power 50, the magazine’s annual list of the most powerful people in the region. In addition, BusinessWeek named him one of its “Stars of Asia” for three consecutive years (1998–2000), and he was Fortune magazine’s 2003 Asian Business Man of the year.
Infosys Business Model:
Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides application development and management, independent validation, product engineering and management, infrastructure management, enterprise application management, and support and integration services.
The company's products and platforms include Finacle, a core banking solution; Edge suite of products; Infosys Nia, an artificial intelligence platform; Infosys McCamish - an insurance platform; Wingspan, a customizable learning platform; Stater mortgage servicing platform; Panaya automation suite; and Skava, an e-commerce suite. The company serves clients in the financial services and insurance, life sciences and healthcare, manufacturing, retail, consumer packaged goods and logistics, hi-tech, communications, telecom OEM, media, energy, utilities, resources, services, and other industries.
It has collaboration agreements with Rolls-Royce, BP plc, Newmont Corporation, RXR Realty, Majesco Limited, and Centre for Accessibility Australia; and a strategic partnership with The Economist Group Limited to enable and enhance sustainability solutions through a business-to-business model.
The Infosys IPO Story :
Infosys made its debut on the stock market 28 years ago, in June 1993. The initial public offer (IPO) of Infosys was not received well and got a cold response from the retail investors. The IPO remained undersubscribed until investment bank Morgan Stanley bailed it out by buying 13% stake in the company.
Nevertheless, the IPO turned out to be a blockbuster and it's worth regretting for those who gave it a miss. Infosys’ IPO offered per share at Rs 95 and an investment worth Rs 10,000 in the IPO is currently worth over Rs 15.30 crs.
The magic of compounding in Infosys Share is given below:
Infosys has been one of the fastest growing companies in India, providing business consulting, information technology and outsourcing services. Recently, Infosys raised its revenue growth for fiscal year 2022 to 14-16 per cent from 12-14 per cent earlier. Revenue in the June quarter rose 18% year-on-year to Rs 27,896 crore, aided by strong growth across segments, according to Livemint.
The shares of Information Technology major, Infosys hit a record high on 24th Aug 2021 which helped the company cross $100 billion in market capitalization. Infosys is the fourth Indian company to achieve this milestone. Reliance Industries (m-cap of $140 billion), Tata Consultancy Services (m-cap $115 billion) and HDFC Bank (m-cap $100.1 billion) are the other Indian firms in the club with Infosys.
The latest quarterly results of Infosys Ltd is shown below :
Data Source : The Economic Times (Markets)
Infosys Ltd provides solutions on two bases, in which their total business revenue depends upon:
DIGITAL
Artificial Intelligence-based Analytics
Big Data Management
Engineer Digital Products
IoT (Internet of Things)
Cloud Application
Cyber Securities
CORE
Application Management and Development Services
Independent Validation Solutions
Product Engineering and Management.
Infrastructure Management Services.
Entreprise Application Implementation
Support and Integration services.
The company has completely focused on improving productivity with better cost management for its clients.
|
List of Infosys CEOs |
|
|
Name |
Period |
|
Narayan Murthy |
1981 to March 2002 |
|
Nandan Nilekani |
March 2002 to April 2007 |
|
S. Gopalakrishnan |
April 2007 to August 2011 |
|
S. D. Shibulal |
August 2011 to July 2014 |
|
Vishal Sikka |
August 2014 to August 2017 |
|
UB Pravin Rao (interim) |
August 2017 to December 2017 |
|
Salil S. Parekh |
January 2018 onwards |
On the technical know-how front, the company is an innovation leader in automation, digital transformation, agile and big data. The company also has 8 Innovation Hubs across US and EU along with 9 global digital studios. On the workforce front, the company has 2.42+ lakh employees and is focused on the localization of its workforce. They also have 60,000+ employees deployed in digital business which includes chatbots, AI, apps and platforms. Overall the company has a wide economic moat due to its scale, market presence, innovation and workforce but it is still not a monopoly.
Therefore investors can buy Infosys Ltd Stock at current levels of Rs.1757/- or any further correction in the stock accumulate the stock and expect a price target of Rs. 2,850/- in 3 to 5 years’ time zone.
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Tuesday, December 7, 2021
Best Artificial Intelligence (AI) Stocks for next 5 to 10 years
Technology has been evolving over the past decades. Among all the innovations that have recently been made such as machine learning, Bitcoin, autonomous vehicles, AI or artificial intelligence is something new that has the power to change the way of world’s working.
AI is a branch of computer science under which such machines are developed that can think and act logically like humans brains.
Meaning
Artificial Intelligence is made up of two words – Artificial + Intelligence.
Artificial means the thing made by human beings and the Intelligence means thinking power. That is, artificial intelligence means something made by humans that has the power to think. Today human being is the only creature in the universe to whom nature has given an advanced mind and the power to use it properly.
In the course of technological development, we have reached the point where humans have started making machines to walk and think like themselves. The advanced technology on which such machines are based is called Artificial Intelligence (AI).
Whether it is technology or finance, health, education or law, artificial intelligence is finding its scope everywhere with much greater efficiency than human resources.
The world is changing at an unprecedented speed. A decade one would think twice before watching an online high-resolution video, today we have self-driving electric cars entering the Indian markets and human intelligence like Machines and robots doing our works. This has also opened new opportunities for investors to jump in early into these prospects.
Stocks in artificial intelligence aren't as uncommon as you may imagine. Many businesses promote AI and machine learning initiatives. Indian start-ups are growing and creating AI solutions in education, health, financial services, and other domains to alleviate social problems. If you're considering investing in artificial intelligence stocks, you might be able to make a good profit in the future.
Here are some of the companies that are focused on AI businesses in India that have excellent technical and business fundamentals, have no or minimal debts, are predicted to develop dramatically, and offer good investment returns.
Tata Elxsi Ltd :
Tata Elxsi provides integrated services, from research and strategy, to electronics and mechanical design, software development, validation and deployment, and is supported by a network of design studios, global development centers and offices worldwide. We combine deep domain expertise with over 30 years of technology and product development experience that enable brands to differentiate and win.
Tata Elxsi is helps customers reimagine their products and services through design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality, and Artificial Intelligence.
Persistent Systems Ltd:
Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. It has its own software and frameworks with pre-built integration and acceleration. It also has partnership with providers such as Sales force and AWS.
The company has few platforms of its own which are pre-built and provide quick integrations. They also have multiple partnerships for integrating other platforms.
Bosch Ltd :
Bosch Ltd is a leading supplier of technology and services in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Additionally, Bosch has, in India, the largest development center outside Germany, for end to end engineering and technology solutions.
The Bosch Group operates in India through thirteen companies, viz, Bosch Limited, Bosch Chassis Systems India Private Limited, Bosch Rexroth (India) Private Limited, Robert Bosch Engineering and Business Solutions Private Limited, Bosch Automotive Electronics India Private Limited, Bosch Electrical Drives India Private Limited, BSH Home Appliances Private Limited, ETAS Automotive India Private Limited, Robert Bosch Automotive Steering Private Limited, Automobility Services and Solutions Private Limited, Newtech Filter India Private Limited and Mivin Engg.Technologies Private Limited and Precision Seals Manufacturing Limited. In India, Bosch set-up its manufacturing operation in 1951, which has grown over the years to include 18 manufacturing sites, and seven development and application centers.
Kellton Tech Solutions Ltd
Kellton Tech is a pioneer in Drupal-based mobile-first and responsive design in India. The company also provides Drupal hosting, migration to Drupal platform (from other platforms) and Drupal version upgrade services on project-to-project basis. Kellton Tech is a Microsoft certified Gold Partner and hosts Amazon, MS Azure professionals. We have served clients coming from a wide range of verticals including retail, travel, e-commerce, education, hospitality, advertising, market research, manufacturing, consumer goods, logistics, SCM, lifestyle and non-profits.
Kellton Tech serves a gamut of customers including startups, SMBs and Fortune 500 businesses. The technological solutions and services include product conceptualization, creative and user design, quality assurance and testing, deployment, hosting & migration, and maintenance and support.
Happiest Minds Technologies Ltd
Happiest minds technologies limited is an Indian multinational information technology company. The company is registered at Registrar of Companies. The company headquarter is in Bengaluru, Karnataka, India. It is a leading global IT industry. The company applies agile methodologies to enable digital transformation for enterprises and technology providers by delivering seamless customer experience, business efficiency and actionable insights. It is a public company.
It is a next- generation digital transformation, infrastructure, security, and product engineering services company with 170+customers, 2400+ people across 16 locations. The company provides its products and services in various locations like US, UK, Singapore, Australia etc. we deliver services across industry sectors such as retail, edutech, industrial, BFSI, hi-tech, engineering R&D, manufacturing, travel, media, entertainment and others.
Finally, Artificial intelligence has long been a subject of anticipation among both popular and scientific culture, with the potential to transform businesses as well as the relationship between people and technology at large.
AI has long been regarded as a potential source of business innovation. With the enablers now in place, organizations are starting to see how AI can multiply value for them. Automation cuts costs and brings new levels of consistency, speed and scalability to business processes.
AI applications can learn from data and results in near real time, analyzing new information from many sources and adapting accordingly, with a level of accuracy that’s invaluable to business.
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