Back to Stocks Basics💹😇
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Being an Avid Learner, thought of sharing wat I learnt to the Trading community whom I ❤️ the most.
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Buy Back of Shares💰
When a company has enough cash in books but doesn’t see any good investment opportunity or new venture or if there is a scenario when the share price of the company is undervalued so the company then purchases some proportion of its shares from the existing shareholders.
This purchasing of its own shares from the shareholders is known as buyback of shares.7 financial ratios to consider while investing in a stock
1. Market cap > Rs 500 Cr
2. ROE (3 Yrs Avg) > 20%
3. Debt to Equity < 1
4. Current Ratio > 1
5. Sales Growth 3 Yrs > 15% (CAGR)
6. Profit Growth 3 Yrs > 15% (CAGR)
7. ROCE (3 Yrs Avg) > 15%
