This thread will teach you 11 financial ratios for stock selection in just 2 minutes (Part 1):
(1) Price to Earnings ratio (P/E ratio)
Formula: P/E ratio = Market Cap/Net Profits (TTM)
Interpretation: A simple way to judge if a stock is a good deal is by looking at its P/E ratio. If it's lower than 25, it's generally considered a good value. It's also helpful to compare a company's P/E ratio to the average for its industry. For a company with a 10-year history, comparing its current P/E to its own 10-year average can be a smart strategy.
(2) Price to Book Value ratio (PB ratio)
Formula: PB Ratio = Share Price/Book Value of Share
Interpretation: A PB ratio over 1 means the market price is higher than the company's value, possibly showing it's overvalued. A low PB ratio means the market expects less from the company. A PB ratio under 1 suggests the stock might be a good deal because it's priced lower than the company's value.
Menon Bearings Ltd. is engaged into manufacturing of Bearings, bushes, thrust washers used in long haul, heavy duty diesel engines & multi axle vehicles at two locations and manufacturing of aluminium die casting components at another location.
(2) Company has expanded its product range to include brakes, transmission, axles, steering, suspension, marine, power generation, and electrical applications.
Company exports 30-35% of production, with annual export growth exceeding 25%, operating in 24 countries worldwide.