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How I Analyse a Business for Investing – Fine Organics Example

Discussion in 'Technical Analysis' started by shabbir, Jun 13, 2021.

  1. shabbir

    shabbir Administrator Staff Member

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    Complete business analysis step by step process to select a company for investing. Example of Fine Organics - a company from the chemical sector

    Continue reading...
     
    shabbir, Jun 13, 2021
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  2. prabhu_ksnp

    prabhu_ksnp New Member

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    Hi Shabbir , I am very new to stock market however i have been long term investor in Mutual Funds. After seeing good returns over the period of 10 + years i thought to venture in to stock market. As far as Fine Organics is concerned their net income is lower than industry average. Is it a point to consider or not to consider , please share your thoughts.
     
    prabhu_ksnp, Jul 6, 2021
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  3. shabbir

    shabbir Administrator Staff Member

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    Welcome to the world of stocks now. Regarding Fine Organics, yes you should consider the net income for sure but not the past one but for the future and if you think it will be better than industry, you should consider it for investing and not otherwise.
     
    shabbir, Jul 7, 2021
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  4. prabhu_ksnp

    prabhu_ksnp New Member

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    Hi Shabbir , Thanks ! How come one can forecast earnings without looking in to past. Let me use the following data Net Income of Fine organics - FY 2018 - 95.33, FY 2019-136.21 (+42.83%) FY 2020- 164.78 (+20.97%) FY 2021 - 121.63 (-26.19%) its closest peer Aarthi Industries FY 2018- 332.96, FY 2019 491.73 (+47.68%) FY 2020 -536.08 (+9.02%) FY 2021 - 523.47 (-2.35%) also from here we can see during reduction it is Fine Organics which has dropped more. At this background getting to original question how one should forecast and also prepare for slips or reductions and its impact to share prices , overall growth. Your comments for my understanding and learning.
     
    prabhu_ksnp, Jul 7, 2021
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  5. shabbir

    shabbir Administrator Staff Member

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    You have to see the business in context. With Fine Organics, I have done a detail analysis here https://shabbir.in/business-analysis-fine-organics/

    They have a long way to go and there are customers which are with them for a very long time.

    Let me know if you still have questions regarding my understanding of future growth for the company. Again, this is not to convince you to invest or anything but putting things into perspective as to how I am seeing the business.
     
    shabbir, Jul 8, 2021
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  6. waseem163

    waseem163 Member

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    Hi shabbir, do you see any opportunity adding more of Fine organics
     
    waseem163, Oct 25, 2022
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  7. shabbir

    shabbir Administrator Staff Member

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    I was on a vacation and saw correction in it but was not tracking the reason for it but there is no reason for correction that I see as yet. So yes this should be an opportunity to add.
     
    shabbir, Nov 7, 2022
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  8. rohitsidana

    rohitsidana New Member

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    Hi Shabbir, Do you see Fine organics at current market price , as an opportunity ?
     
    rohitsidana, Oct 15, 2023
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  9. shabbir

    shabbir Administrator Staff Member

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    Depends on when they can get back the growth YoY but it looks like they will be able to manage it in a quarter or two. Because of high base and slow down in China, there will be tough times ahead. Still, I am keeping the faith over the longer term.
     
    shabbir, Oct 16, 2023
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