Hello everyone, newbie here. Asking experienced folks here on how you choose a scrip. Eg what is the parameter to look for in let’s say hydro vs bank? Are banks and (micro)finances evaluated similarly for stock picking? Are ROE, EPS, PE, PB all that we need to care about? I am specially interested on long term capital growth instead of active and/or swing trades. Of course this is not a question of which one should I buy. Thanks.
View on r/NepalStock by reddi7er
ROE, ROIC, ROCE are effective to measure profitability and management’s efficiency and PB is more important than PE (for financial institutions). Also look at ratios such as NPA, NPL, CASA ratio etc. Lastly, learn to read financial reports and analyse quality of earnings and cash flow statements.
Hydro in present context are fully overvalued but they a very good traders cash cow in NEPSE these any sort of parameters are useless but in terms of Banking CAR is my top pick considering few mentioned above