Claude Skill

india-stock-analysis

Use when user requests analysis of Indian stocks, fundamental assessment, technical review, comparisons, or investment reports for NSE/BSE listed companies.

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ajeeshworkspace/indian-trading-skills 73 47 forks MIT Updated 33d ago

Part of ajeeshworkspace/indian-trading-skills — 10 skills

Install

skills CLI npx skills add https://github.com/ajeeshworkspace/indian-trading-skills/tree/master/skills/india-stock-analysis

Claude Code

claude plugin marketplace add https://llmmart.ai/marketplace.json && claude plugin install ajeeshworkspace-indian-trading-skills@llmmart

Git git clone https://github.com/ajeeshworkspace/indian-trading-skills.git

The skills CLI installs just this skill, for any of its supported agents. Claude Code installs the whole ajeeshworkspace/indian-trading-skills collection as a plugin from our marketplace. Git is the plain clone.

Skill manifest

India Stock Analysis Skill

Analyze Indian stocks listed on NSE and BSE using broker MCP tools and web search. All analysis is denominated in INR and follows Indian fiscal year conventions (April-March). No API keys are required.

Data Sources

Use whichever broker MCP is connected. Both provide equivalent data for stock analysis.

Option A: Groww MCP (if connected)

fetch_stocks_fundamental_data -- Financials, ratios, shareholding, mutual fund holdings
fetch_historical_candle_data -- OHLCV price history
get_historical_technical_indicators -- RSI, MACD, Bollinger, SMA, EMA, SuperTrend, VWAP, ADX, and more
get_ltp -- Live/last traded price and open interest
get_quotes_and_depth -- Real-time bid/ask and market depth
curate_symbols -- Resolve stock symbols and exchange
fetch_market_movers_and_trending_stocks_funds -- Market movers, gainers, losers
fetch_fundamentals_screener -- Screen stocks by fundamental criteria
fetch_technical_screener -- Screen stocks by technical signals
search_stock_and_others_symbol -- Search for stocks, indices, and companies
resolve_market_time_and_calendar -- Current market time, trading days, holidays

Option B: Zerodha Kite MCP (if connected)

get_ltp -- Last traded price for instruments
get_quotes -- Real-time market quotes with depth
get_ohlc -- OHLC data for instruments
get_historical_data -- Historical OHLCV candle data
search_instruments -- Search and resolve trading instruments
get_holdings -- User's portfolio holdings
get_positions -- Current trading positions
get_margins -- Account margin details
get_profile -- User profile information

Supplementary

Web search for news, analyst reports, sector developments, and regulatory updates
yfinance (free, no API key) as fallback for historical data

Workflow

When a user requests stock analysis, determine which analysis type is needed and follow the corresponding workflow below. If the user does not specify, default to Comprehensive Investment Report.

Analysis Type 1: Basic Stock Information

Use when the user asks for a quick overview, current price, or summary of a stock.

Steps:

Resolve the symbol. Call curate_symbols or search_stock_and_others_symbol with the company name to obtain the correct trading symbol and exchange (NSE/BSE).
Fetch current price. Call get_ltp with the resolved trading symbol to get the last traded price, day change, and percentage change.
Fetch key fundamental stats. Call fetch_stocks_fundamental_data with view='stats_only' and include stats: marketCap, peRatio, pbRatio, roe, epsTtm, dividendYieldInPercent, industryPe, bookValue, debtToEquity, faceValue.
Fetch recent price history. Call fetch_historical_candle_data for the last 1 year with daily interval (interval_in_minutes='1440') to determine 52-week high/low and YTD performance.
Search for recent news. Use web search for recent news about the company (last 30 days).
Present the output in this format:

## [Company Name] ([Exchange]: [Symbol])

**Current Price:** Rs.[LTP] ([+/-change] / [+/-change%])
**Market Cap:** Rs.[value] Cr
**Sector:** [sector]

### Key Metrics
| Metric            | Value         |
|--------------------|---------------|
| PE Ratio           | [value]       |
| Industry PE        | [value]       |
| PB Ratio           | [value]       |
| EPS (TTM)          | Rs.[value]    |
| ROE                | [value]%      |
| Debt/Equity        | [value]       |
| Dividend Yield     | [value]%      |
| Book Value         | Rs.[value]    |
| Face Value         | Rs.[value]    |

### 52-Week Range
- **High:** Rs.[value] ([date])
- **Low:** Rs.[value] ([date])
- **Current vs High:** [x]% below 52W high

### YTD Performance
- **1 Jan to Today:** [+/-x]%

### Recent News
- [headline 1] -- [source, date]
- [headline 2] -- [source, date]
- [headline 3] -- [source, date]

Analysis Type 2: Fundamental Analysis

Use when the user asks for fundamental analysis, business quality, financials, valuation, or investment merit.

Steps:

Resolve the symbol as in Analysis Type 1.
Fetch full fundamental data. Call fetch_stocks_fundamental_data with view='all' and stats: marketCap, peRatio, pbRatio, roe, epsTtm, dividendYieldInPercent, industryPe, bookValue, debtToEquity, faceValue, returnOnAssets, returnOnEquity, operatingProfitMargin, netProfitMargin, quickRatio, cashRatio, debtToAsset, evToSales, evToEbitda, earningsYield, sectorPe, sectorPb, sectorDivYield, sectorRoe, sectorRoce, priceToOcf, priceToFcf, pePremiumVsSector, pbPremiumVsSector, divYieldVsSector, currentRatio, priceToSales, pegRatio, roic. Include optional financial items ['*'] to get complete financial statements.
Fetch shareholding data. Call fetch_stocks_fundamental_data with view='shareholders_and_mutual_funds' to get promoter holding, FII/DII breakdown, pledge percentage, and top mutual fund holders.
Perform web search for analyst reports, management commentary, and sector outlook.
Analyze and present using the framework in references/fundamental-analysis.md:

a. Business Quality Assessment
- What does the company do? What is its competitive moat?
- Management quality and promoter track record
- Market position and competitive advantages
- Corporate governance indicators
b. Financial Health
- Revenue and profit trends (3-5 year view using financial statements)
- Margin analysis (operating, net, EBITDA)
- Cash flow quality (operating cash flow vs reported profit)
- Balance sheet strength (debt levels, current ratio, interest coverage)
c. Shareholding Pattern (India-Specific)
- Promoter holding percentage (>50% generally positive, <30% caution)
- Promoter pledge percentage (>20% is a red flag, >50% is a serious concern)
- FII holding trend (increasing = positive signal)
- DII holding trend
- Change in shareholding over recent quarters
d. Valuation
- PE vs Industry PE and Sector PE (premium/discount)
- PB vs Sector PB
- PEG ratio assessment
- EV/EBITDA comparison
- Earnings yield vs risk-free rate (India 10Y government bond yield ~7%)
e. Growth Assessment
- Revenue growth trajectory
- EPS growth trend
- Order book / pipeline visibility (if applicable)
- Capex plans and return on invested capital
f. Risk Factors
- Company-specific risks
- Sector/regulatory risks
- Promoter-related risks (pledge, related party transactions)
- Macro risks (currency, interest rates, commodity prices)
Assign a fundamental score from 1-10 based on the framework in references/fundamental-analysis.md.

Analysis Type 3: Technical Analysis

Use when the user asks for technical analysis, chart patterns, entry/exit levels, or trading signals.

Steps:

Resolve the symbol as in Analysis Type 1.
Determine the market time context. Call resolve_market_time_and_calendar to get the current date and market status.
Fetch price history. Call fetch_historical_candle_data for multiple timeframes:
- Daily candles for the last 6 months (trend analysis)
- Weekly candles for the last 2 years (long-term trend)
- If intraday analysis is needed: 5-minute or 15-minute candles for the last few days
Fetch technical indicators. Call get_historical_technical_indicators with these indicators:
- Trend: sma (20, 50, 200 period), ema (20 period), supertrend
- Momentum: rsi (14 period), macd (12, 26, 9), stochastic, williams_r, adx
- Volatility: bollinger (20 period, 2 std), atr, keltner
- Volume: vwap, obv, mfi
- Reversal: parabolic_sar
- Support/Resistance: pivot_points
Note: Run multiple calls if needed for different SMA periods (20, 50, 200).
Fetch candlestick patterns (optional). Call get_historical_candlestick_patterns if the user asks for pattern analysis.
Analyze and present:

a. Trend Analysis
- Primary trend (weekly): uptrend / downtrend / sideways
- Secondary trend (daily): direction and strength
- Price position relative to key SMAs (20, 50, 200 DMA)
- Golden cross / death cross status (50 DMA vs 200 DMA)
- SuperTrend direction
b. Support and Resistance Levels
- Identify key support levels from pivot points, recent swing lows, and round numbers
- Identify key resistance levels from pivot points, recent swing highs, and round numbers
- Present as a clear table
c. Momentum Indicators
- RSI: Current value, overbought/oversold, divergences
- MACD: Signal line crossover, histogram trend, zero-line position
- Stochastic: %K/%D crossover, overbought/oversold zones
- ADX: Trend strength (>25 = trending, <20 = ranging)
d. Volatility Assessment
- Bollinger Band width and position (near upper/lower/middle band)
- ATR value and trend (expanding/contracting volatility)
- Keltner Channel position
e. Volume Analysis
- Volume trend (increasing/decreasing with price moves)
- OBV trend (confirming or diverging from price)
- MFI reading (money flow)
- VWAP position (intraday context)
f. Pattern Recognition (if applicable)
- Candlestick patterns detected
- Chart patterns (head and shoulders, triangles, channels)
- Significance and reliability rating
g. Trading Levels
```
| Level Type       | Price (Rs.) | Notes                  |
|-------------------|-------------|------------------------|
| Resistance 3      | [value]     | [context]              |
| Resistance 2      | [value]     | [context]              |
| Resistance 1      | [value]     | [context]              |
| Current Price      | [value]     | --                     |
| Support 1          | [value]     | [context]              |
| Support 2          | [value]     | [context]              |
| Support 3          | [value]     | [context]              |
```
h. Technical Outlook
- Short-term (1-2 weeks): bullish / bearish / neutral
- Medium-term (1-3 months): bullish / bearish / neutral
- Key levels to watch and potential triggers

Analysis Type 4: Comprehensive Investment Report

Use when the user asks for a full report, comprehensive analysis, or investment recommendation. This is the default when no specific type is requested.

Steps:

Execute all steps from Analysis Types 1, 2, and 3 above. Make parallel tool calls wherever possible to speed up data gathering.
Perform additional research:
- Web search for recent analyst recommendations and target prices
- Web search for upcoming catalysts (earnings dates, AGM, corporate actions)
- Web search for sector/macro developments affecting the stock
- Fetch peer comparison data using fetch_stocks_fundamental_data for 3-5 peers
Compile the report using the template in assets/report-template.md:

a. Executive Summary
- Investment recommendation: Strong Buy / Buy / Hold / Sell / Strong Sell
- Conviction level: High / Medium / Low
- Key thesis in 2-3 sentences
b. Company Overview
- Business description, history, and market position
- Sector classification and listing details (NSE/BSE)
- Market cap category (Large Cap / Mid Cap / Small Cap / Micro Cap)
c. Investment Thesis
- Bull case: 3-5 reasons to buy
- Bear case: 3-5 reasons for caution
- Base case scenario
d. Fundamental Analysis (from Analysis Type 2)

e. Technical Analysis (from Analysis Type 3)

f. Valuation Analysis
- Relative valuation vs peers (PE, PB, EV/EBITDA table)
- Historical valuation range (PE band over 3-5 years)
- Sector premium/discount analysis
g. Risk Assessment
- Risk matrix with probability and impact
- Company-specific, sector, and macro risks
- SEBI regulatory considerations if applicable
h. Peer Comparison
- Table comparing 4-6 key metrics across the company and 3-5 peers
- Relative positioning commentary
i. Catalysts
- Near-term (0-3 months): earnings, results, corporate actions
- Medium-term (3-12 months): expansion plans, order wins, regulatory changes
- Long-term (1-3 years): structural growth drivers
j. Conclusion
- Summary of the investment case
- Key monitoring parameters
- Suggested review triggers
k. Disclaimer
- Standard investment disclaimer (this is not investment advice, for educational purposes only)
Format the entire report following the structure in assets/report-template.md.

India-Specific Considerations

Throughout all analysis types, apply these India-specific guidelines:

Currency: All prices and financial figures in INR (Rs.). Use Cr (Crore = 10 million) and L (Lakh = 100,000) as appropriate for Indian market convention.
Fiscal Year: Indian companies follow April-March fiscal year. Reference as FY24 (April 2023 - March 2024), FY25, etc.
Market Hours: NSE/BSE trade 9:15 AM to 3:30 PM IST, Monday to Friday (excluding market holidays).
Promoter Holding: A critical India-specific metric. Interpret as follows:
- Above 70%: Very high promoter control, could limit free float
- 50-70%: Strong promoter confidence
- 30-50%: Moderate, watch for changes
- Below 30%: Low promoter stake, potential governance concern
Promoter Pledge: Shares pledged by promoters as collateral for loans.
- 0%: Best case
- 1-10%: Acceptable
- 10-20%: Monitor closely
- Above 20%: Red flag
- Above 50%: Serious concern
FII/DII Holdings: Foreign and Domestic Institutional Investor holdings indicate institutional confidence.
Regulatory Context: SEBI regulations, LODR compliance, insider trading norms.
Index Membership: Nifty 50, Nifty Next 50, Nifty 100, Nifty 500, Nifty Midcap 100, Nifty Smallcap 100, sectoral indices.
Dual Listing: Most Indian companies are listed on both NSE and BSE. NSE is typically preferred for liquidity. Use NSE data unless BSE is specifically requested.
Circuit Limits: Indian exchanges have upper and lower circuit limits. Mention if relevant.
T+1 Settlement: Indian markets follow T+1 settlement cycle.
Lot Size (F&O): If the stock is in the F&O segment, mention the lot size.

Output Guidelines

Use clear markdown formatting with tables, headers, and bullet points.
Present numerical data in tables where possible for easy comparison.
Bold key metrics and important observations.
Include data timestamps so the user knows how current the data is.
Always end reports with the standard disclaimer.
When comparing with peers, use the same set of metrics consistently.
Round financial ratios to 2 decimal places.
Express large numbers in Indian convention: Cr (Crores) and L (Lakhs).
Include percentage changes with directional indicators (up/down arrows or +/- signs).

Error Handling

If a broker MCP tool call fails (Groww or Zerodha), note the missing data point and proceed with available data. Try the alternative broker's equivalent tool if available. Use web search as a fallback for critical data.
If the stock symbol cannot be resolved, ask the user to clarify the company name or provide the NSE/BSE symbol directly.
If the company is not listed on Indian exchanges, inform the user that this skill is designed for NSE/BSE listed companies.
If historical data is limited (e.g., recently listed IPO), adjust the analysis timeframes accordingly and note the limitation.

Files (indian-trading-skills)

assets

report-template.md 15.7 KB

# Investment Report Template

Use this template when generating a Comprehensive Investment Report (Analysis Type 4). Fill in all sections with data gathered from Groww MCP tools and web search. Replace all bracketed placeholders with actual data. Remove any sections that are not applicable, but include a note explaining why.

---

## [Company Name] ([Exchange]: [Symbol]) -- Investment Report

**Report Date:** [Date]
**Current Market Price:** Rs.[CMP]
**Market Cap:** Rs.[Value] Cr ([Large Cap / Mid Cap / Small Cap / Micro Cap])
**Sector:** [Sector]
**Industry:** [Industry]

---

### 1. Executive Summary

| Parameter | Detail |
|-----------|--------|
| **Recommendation** | [Strong Buy / Buy / Hold / Sell / Strong Sell] |
| **Conviction Level** | [High / Medium / Low] |
| **Current Price** | Rs.[CMP] |
| **Investment Horizon** | [Short-term (0-3 months) / Medium-term (3-12 months) / Long-term (1-3 years)] |

**Thesis:** [2-3 sentence summary of the core investment case. What is the primary reason to own or avoid this stock?]

**Key Strengths:**
- [Strength 1]
- [Strength 2]
- [Strength 3]

**Key Risks:**
- [Risk 1]
- [Risk 2]
- [Risk 3]

---

### 2. Company Overview

**Business Description:**
[Detailed description of what the company does, its products/services, end markets, and value proposition. Include founding year, headquarters, and key milestones.]

**Market Position:**
- Industry rank: [#X in India by market share / revenue]
- Key competitors: [Competitor 1, Competitor 2, Competitor 3]
- Market share: [X]% in [primary segment]

**Listing Details:**

| Parameter | Detail |
|-----------|--------|
| NSE Symbol | [Symbol] |
| BSE Code | [Code] |
| ISIN | [ISIN] |
| Face Value | Rs.[Value] |
| Lot Size (F&O) | [Lot size, if available in F&O segment; otherwise "Not in F&O"] |
| Index Membership | [Nifty 50 / Nifty Next 50 / Nifty 100 / Nifty 500 / Sectoral Index, etc.] |

**Revenue Segmentation:**

| Segment | Revenue Contribution (%) | Growth Trend |
|---------|-------------------------|-------------|
| [Segment 1] | [X]% | [Growing / Stable / Declining] |
| [Segment 2] | [X]% | [Growing / Stable / Declining] |
| [Segment 3] | [X]% | [Growing / Stable / Declining] |

**Geographic Mix:**

| Region | Revenue Contribution (%) |
|--------|-------------------------|
| Domestic (India) | [X]% |
| International | [X]% |

---

### 3. Investment Thesis

#### Bull Case (Reasons to Buy)

1. **[Theme 1]:** [Detailed explanation of why this is a positive factor, supported by data]
2. **[Theme 2]:** [Detailed explanation]
3. **[Theme 3]:** [Detailed explanation]
4. **[Theme 4]:** [Detailed explanation, if applicable]
5. **[Theme 5]:** [Detailed explanation, if applicable]

#### Bear Case (Reasons for Caution)

1. **[Risk Theme 1]:** [Detailed explanation of the risk and potential impact]
2. **[Risk Theme 2]:** [Detailed explanation]
3. **[Risk Theme 3]:** [Detailed explanation]
4. **[Risk Theme 4]:** [Detailed explanation, if applicable]
5. **[Risk Theme 5]:** [Detailed explanation, if applicable]

#### Base Case Scenario

[Description of the most likely outcome over the investment horizon, considering both bull and bear factors. Include expected trajectory for revenue, profits, and valuation.]

---

### 4. Fundamental Analysis

#### 4.1 Key Financial Metrics

| Metric | Current | 1Y Ago | 3Y Ago | Industry Avg |
|--------|---------|--------|--------|-------------|
| PE Ratio | [X] | [X] | [X] | [X] |
| PB Ratio | [X] | [X] | [X] | [X] |
| EV/EBITDA | [X] | [X] | [X] | [X] |
| ROE (%) | [X]% | [X]% | [X]% | [X]% |
| ROCE (%) | [X]% | [X]% | [X]% | [X]% |
| Debt/Equity | [X] | [X] | [X] | [X] |
| Dividend Yield (%) | [X]% | [X]% | [X]% | [X]% |
| EPS (Rs.) | [X] | [X] | [X] | -- |

#### 4.2 Profitability Trends (Rs. Cr)

| Metric | FY[Y-4] | FY[Y-3] | FY[Y-2] | FY[Y-1] | FY[Y] (LTM) | CAGR |
|--------|---------|---------|---------|---------|-------------|------|
| Revenue | [X] | [X] | [X] | [X] | [X] | [X]% |
| EBITDA | [X] | [X] | [X] | [X] | [X] | [X]% |
| EBITDA Margin (%) | [X]% | [X]% | [X]% | [X]% | [X]% | -- |
| PAT | [X] | [X] | [X] | [X] | [X] | [X]% |
| Net Margin (%) | [X]% | [X]% | [X]% | [X]% | [X]% | -- |
| EPS (Rs.) | [X] | [X] | [X] | [X] | [X] | [X]% |

#### 4.3 Balance Sheet Highlights (Rs. Cr)

| Metric | FY[Y-2] | FY[Y-1] | FY[Y] (Latest) |
|--------|---------|---------|----------------|
| Total Equity | [X] | [X] | [X] |
| Total Debt | [X] | [X] | [X] |
| Cash & Equivalents | [X] | [X] | [X] |
| Net Debt | [X] | [X] | [X] |
| Net Worth | [X] | [X] | [X] |
| Current Ratio | [X] | [X] | [X] |
| Interest Coverage | [X]x | [X]x | [X]x |

#### 4.4 Cash Flow Analysis (Rs. Cr)

| Metric | FY[Y-2] | FY[Y-1] | FY[Y] (Latest) |
|--------|---------|---------|----------------|
| Operating Cash Flow | [X] | [X] | [X] |
| Capital Expenditure | [X] | [X] | [X] |
| Free Cash Flow | [X] | [X] | [X] |
| OCF/PAT Ratio | [X] | [X] | [X] |

#### 4.5 Shareholding Pattern

| Category | Current (%) | Previous Qtr (%) | Change (pp) |
|----------|------------|------------------|-------------|
| Promoter | [X]% | [X]% | [+/-X] |
| Promoter Pledge | [X]% | [X]% | [+/-X] |
| FII | [X]% | [X]% | [+/-X] |
| DII | [X]% | [X]% | [+/-X] |
| Public/Retail | [X]% | [X]% | [+/-X] |

**Shareholding Commentary:**
[Interpretation of shareholding trends. Is promoter holding stable? Any pledge concerns? Are FIIs increasing or decreasing exposure? What does the DII trend indicate?]

#### 4.6 Business Quality Assessment

**Moat Analysis:**
[Assessment of competitive advantages using the framework from references/fundamental-analysis.md]

**Management Quality:**
[Assessment of management track record, governance, and capital allocation]

**Fundamental Score: [X]/10**

| Category | Weight | Score | Reasoning |
|----------|--------|-------|-----------|
| Business Quality | 25% | [X]/10 | [Brief justification] |
| Management Quality | 20% | [X]/10 | [Brief justification] |
| Financial Health | 20% | [X]/10 | [Brief justification] |
| Valuation | 15% | [X]/10 | [Brief justification] |
| Growth Potential | 10% | [X]/10 | [Brief justification] |
| Shareholding Quality | 10% | [X]/10 | [Brief justification] |

---

### 5. Technical Analysis

#### 5.1 Trend Summary

| Timeframe | Trend | Key Level | Indicator |
|-----------|-------|-----------|-----------|
| Long-term (Weekly) | [Uptrend / Downtrend / Sideways] | [Key level] | [200 DMA position] |
| Medium-term (Daily) | [Uptrend / Downtrend / Sideways] | [Key level] | [50 DMA position] |
| Short-term (Hourly) | [Uptrend / Downtrend / Sideways] | [Key level] | [20 DMA position] |

**Moving Average Position:**
- Price vs 20 DMA: [Above / Below] by [X]%
- Price vs 50 DMA: [Above / Below] by [X]%
- Price vs 200 DMA: [Above / Below] by [X]%
- 50 DMA vs 200 DMA: [Golden Cross / Death Cross / Neutral]

#### 5.2 Support and Resistance

| Level Type | Price (Rs.) | Basis |
|-----------|-------------|-------|
| Resistance 3 | [X] | [Basis: previous high / pivot / round number] |
| Resistance 2 | [X] | [Basis] |
| Resistance 1 | [X] | [Basis] |
| **Current Price** | **[X]** | **--** |
| Support 1 | [X] | [Basis] |
| Support 2 | [X] | [Basis] |
| Support 3 | [X] | [Basis] |

#### 5.3 Momentum Indicators

| Indicator | Current Value | Signal | Interpretation |
|-----------|--------------|--------|---------------|
| RSI (14) | [X] | [Overbought / Oversold / Neutral] | [Brief interpretation] |
| MACD | [X] | [Bullish / Bearish Crossover / Neutral] | [Brief interpretation] |
| MACD Histogram | [X] | [Expanding / Contracting] | [Brief interpretation] |
| Stochastic %K/%D | [X]/[X] | [Overbought / Oversold / Neutral] | [Brief interpretation] |
| ADX | [X] | [Strong Trend / Weak Trend / Ranging] | [Brief interpretation] |
| Williams %R | [X] | [Overbought / Oversold / Neutral] | [Brief interpretation] |

#### 5.4 Volatility Indicators

| Indicator | Current Value | Signal |
|-----------|--------------|--------|
| Bollinger Band Position | [Upper / Middle / Lower] | [Squeeze / Expansion] |
| Bollinger Band Width | [X]% | [Narrow / Normal / Wide] |
| ATR (14) | Rs.[X] | [Expanding / Contracting volatility] |
| SuperTrend | [Bullish / Bearish] at Rs.[X] | [Direction and flip level] |

#### 5.5 Volume Analysis

| Indicator | Current Value | Signal |
|-----------|--------------|--------|
| Volume vs 20-day Avg | [X]x ([Above / Below] average) | [Confirmation / Divergence] |
| OBV Trend | [Rising / Falling / Flat] | [Confirming / Diverging from price] |
| MFI (14) | [X] | [Overbought / Oversold / Neutral] |

#### 5.6 Technical Outlook

- **Short-term (1-2 weeks):** [Bullish / Bearish / Neutral] -- [Supporting reasoning]
- **Medium-term (1-3 months):** [Bullish / Bearish / Neutral] -- [Supporting reasoning]
- **Key levels to watch:** [List 2-3 critical price levels and what happens if breached]

---

### 6. Valuation Analysis

#### 6.1 Relative Valuation vs Peers

| Company | Market Cap (Rs. Cr) | PE | PB | EV/EBITDA | ROE (%) | Debt/Equity | Revenue Growth (%) |
|---------|--------------------|----|-----|-----------|---------|-------------|-------------------|
| **[Target Company]** | **[X]** | **[X]** | **[X]** | **[X]** | **[X]%** | **[X]** | **[X]%** |
| [Peer 1] | [X] | [X] | [X] | [X] | [X]% | [X] | [X]% |
| [Peer 2] | [X] | [X] | [X] | [X] | [X]% | [X] | [X]% |
| [Peer 3] | [X] | [X] | [X] | [X] | [X]% | [X] | [X]% |
| [Peer 4] | [X] | [X] | [X] | [X] | [X]% | [X] | [X]% |
| Sector Average | -- | [X] | [X] | [X] | [X]% | [X] | [X]% |

**Relative Valuation Commentary:**
[Is the company trading at a premium or discount to peers? Is the premium/discount justified based on growth, profitability, and quality differences?]

#### 6.2 Historical Valuation

| Multiple | Current | 5Y Average | 5Y High | 5Y Low | Position |
|----------|---------|-----------|---------|--------|----------|
| PE | [X] | [X] | [X] | [X] | [Below / At / Above avg] |
| PB | [X] | [X] | [X] | [X] | [Below / At / Above avg] |
| EV/EBITDA | [X] | [X] | [X] | [X] | [Below / At / Above avg] |

#### 6.3 Valuation Assessment

| Framework | Assessment | Detail |
|-----------|-----------|--------|
| PE vs Industry PE | [Premium / Discount] of [X]% | [Justified / Not justified because...] |
| PEG Ratio | [X] | [Attractive / Fair / Expensive] |
| Earnings Yield vs G-Sec | [X]% vs ~7% | [Attractive / Unattractive on absolute basis] |
| FCF Yield | [X]% | [Attractive / Fair / Low] |

**Overall Valuation Verdict:** [Undervalued / Fairly Valued / Overvalued] -- [One sentence justification]

---

### 7. Risk Assessment

#### 7.1 Risk Matrix

| Risk Factor | Probability | Impact | Overall Risk | Mitigation |
|------------|-------------|--------|-------------|-----------|
| [Company-specific risk 1] | [High / Medium / Low] | [High / Medium / Low] | [High / Medium / Low] | [How company can mitigate] |
| [Company-specific risk 2] | [High / Medium / Low] | [High / Medium / Low] | [High / Medium / Low] | [Mitigation] |
| [Sector risk 1] | [High / Medium / Low] | [High / Medium / Low] | [High / Medium / Low] | [Mitigation] |
| [Macro risk 1] | [High / Medium / Low] | [High / Medium / Low] | [High / Medium / Low] | [Mitigation] |
| [Regulatory risk 1] | [High / Medium / Low] | [High / Medium / Low] | [High / Medium / Low] | [Mitigation] |

#### 7.2 India-Specific Risks

- **Regulatory:** [SEBI, sector regulator, government policy changes relevant to this company]
- **Currency:** [INR depreciation/appreciation impact on the business, if applicable]
- **Political/Policy:** [Government policy changes, subsidy changes, taxation changes]
- **Liquidity:** [Free float, average daily trading volume, circuit limit history]

---

### 8. Catalysts

#### 8.1 Near-Term Catalysts (0-3 months)

| Catalyst | Expected Date | Potential Impact | Direction |
|----------|--------------|-----------------|-----------|
| [Quarterly results] | [Date] | [High / Medium / Low] | [Positive / Negative / Uncertain] |
| [Corporate action] | [Date] | [Impact level] | [Direction] |
| [Regulatory event] | [Date] | [Impact level] | [Direction] |

#### 8.2 Medium-Term Catalysts (3-12 months)

| Catalyst | Expected Timeline | Potential Impact | Direction |
|----------|------------------|-----------------|-----------|
| [Expansion/capex completion] | [Timeline] | [Impact level] | [Direction] |
| [Order wins / contract renewals] | [Timeline] | [Impact level] | [Direction] |
| [Sector tailwind/headwind] | [Timeline] | [Impact level] | [Direction] |

#### 8.3 Long-Term Catalysts (1-3 years)

| Catalyst | Expected Timeline | Potential Impact | Direction |
|----------|------------------|-----------------|-----------|
| [Structural growth driver] | [Timeline] | [Impact level] | [Direction] |
| [Market expansion] | [Timeline] | [Impact level] | [Direction] |
| [Technology/industry shift] | [Timeline] | [Impact level] | [Direction] |

---

### 9. Peer Comparison

#### Comprehensive Peer Comparison Table

| Parameter | [Target] | [Peer 1] | [Peer 2] | [Peer 3] | [Peer 4] |
|-----------|----------|----------|----------|----------|----------|
| Market Cap (Rs. Cr) | [X] | [X] | [X] | [X] | [X] |
| Revenue (Rs. Cr) | [X] | [X] | [X] | [X] | [X] |
| Revenue Growth (%) | [X]% | [X]% | [X]% | [X]% | [X]% |
| EBITDA Margin (%) | [X]% | [X]% | [X]% | [X]% | [X]% |
| Net Margin (%) | [X]% | [X]% | [X]% | [X]% | [X]% |
| ROE (%) | [X]% | [X]% | [X]% | [X]% | [X]% |
| ROCE (%) | [X]% | [X]% | [X]% | [X]% | [X]% |
| PE Ratio | [X] | [X] | [X] | [X] | [X] |
| PB Ratio | [X] | [X] | [X] | [X] | [X] |
| Debt/Equity | [X] | [X] | [X] | [X] | [X] |
| Dividend Yield (%) | [X]% | [X]% | [X]% | [X]% | [X]% |
| Promoter Holding (%) | [X]% | [X]% | [X]% | [X]% | [X]% |
| FII Holding (%) | [X]% | [X]% | [X]% | [X]% | [X]% |

**Peer Comparison Commentary:**
[How does the target company compare with peers across key dimensions? Where does it stand out positively and negatively? Is its valuation justified relative to peer quality?]

---

### 10. Conclusion

**Summary:**
[Concise summary of the overall investment case, weighing the bull and bear arguments. State the final recommendation clearly.]

**Key Monitoring Parameters:**
The following parameters should be tracked on an ongoing basis to validate or invalidate the investment thesis:

1. [Parameter 1] -- Current: [value], Watch for: [threshold or change]
2. [Parameter 2] -- Current: [value], Watch for: [threshold or change]
3. [Parameter 3] -- Current: [value], Watch for: [threshold or change]
4. [Parameter 4] -- Current: [value], Watch for: [threshold or change]
5. [Parameter 5] -- Current: [value], Watch for: [threshold or change]

**Review Triggers:**
Re-evaluate this analysis if any of the following occur:
- [Trigger 1, e.g., "Promoter pledge exceeds 20%"]
- [Trigger 2, e.g., "Two consecutive quarters of revenue decline"]
- [Trigger 3, e.g., "Stock breaks below Rs.X support level"]
- [Trigger 4, e.g., "Major regulatory change in the sector"]

---

### 11. Disclaimer

This report is generated for **educational and informational purposes only** and does not constitute investment advice, a recommendation, or a solicitation to buy, sell, or hold any security.

**Key points:**
- The analysis is based on publicly available data and may contain inaccuracies or omissions.
- Past performance is not indicative of future results. Stock prices can go up or down.
- The author/generator of this report is not a SEBI-registered investment advisor.
- Investors should conduct their own due diligence and/or consult a qualified SEBI-registered financial advisor before making any investment decisions.
- All investments carry risk, including the potential loss of principal. The Indian equity market is subject to market risks, regulatory risks, and macroeconomic risks.
- Data sources include Groww MCP tools and publicly available web information. Data accuracy depends on source reliability.
- This report reflects a point-in-time analysis as of the report date and may not reflect subsequent developments.

**Report generated on:** [Date and Time IST]
**Data as of:** [Market close date for price data]

references

financial-metrics.md 20.1 KB

# Financial Metrics Reference for Indian Stock Analysis

This reference document contains all key financial ratios, formulas, interpretation guidelines, and benchmarks for analyzing Indian listed companies. All metrics are organized by category for quick lookup during analysis.

---

## 1. Profitability Ratios

### Return on Equity (ROE)

- **Formula:** Net Profit / Average Shareholder's Equity x 100
- **What it measures:** How efficiently a company uses shareholder capital to generate profits.
- **Benchmark:** >15% is good, >20% is excellent for Indian companies.
- **Caution:** High ROE driven purely by leverage (high Debt/Equity) is less sustainable. Use DuPont analysis to decompose.
- **DuPont Decomposition:** ROE = Net Margin x Asset Turnover x Equity Multiplier
  - Net Margin = Net Profit / Revenue (profitability)
  - Asset Turnover = Revenue / Total Assets (efficiency)
  - Equity Multiplier = Total Assets / Equity (leverage)

### Return on Assets (ROA)

- **Formula:** Net Profit / Average Total Assets x 100
- **What it measures:** How efficiently a company uses all its assets (debt + equity funded) to generate profits.
- **Benchmark:** >5% for non-financial companies, >1% for banks.
- **Use case:** Better than ROE for comparing companies with different capital structures.

### Return on Capital Employed (ROCE)

- **Formula:** EBIT / (Total Assets - Current Liabilities) x 100
- **What it measures:** Returns generated on long-term capital (equity + long-term debt).
- **Benchmark:** >15% is good, should be higher than cost of debt.
- **India note:** ROCE is widely used by Indian analysts and is often more relevant than ROE for capital-intensive businesses.

### Return on Invested Capital (ROIC)

- **Formula:** NOPAT / Invested Capital x 100
  - NOPAT = Operating Profit x (1 - Tax Rate)
  - Invested Capital = Total Equity + Total Debt - Cash and Cash Equivalents
- **What it measures:** The true return on all invested capital, independent of capital structure.
- **Benchmark:** Should exceed the company's WACC (typically 10-14% in India).
- **Key insight:** ROIC > WACC means the company creates value; ROIC < WACC means it destroys value.

### Operating Profit Margin (OPM)

- **Formula:** Operating Profit / Revenue x 100
- **What it measures:** Profitability from core operations before interest and taxes.
- **Sector benchmarks for India:**

| Sector | Typical OPM Range |
|--------|-------------------|
| IT Services | 20-28% |
| FMCG | 18-25% |
| Pharmaceuticals | 18-25% |
| Automobiles | 10-15% |
| Banks (NIM as proxy) | 3-4% |
| Cement | 15-22% |
| Steel/Metals | 10-20% (cyclical) |
| Real Estate | 25-40% |
| Telecom | 30-50% |
| Retail | 3-8% |

### Net Profit Margin (NPM)

- **Formula:** Net Profit / Revenue x 100
- **What it measures:** Bottom-line profitability after all expenses, interest, and taxes.
- **Interpretation:** Compare with OPM to understand the impact of interest costs and taxes. A large gap between OPM and NPM suggests high leverage or high effective tax rate.

### EBITDA Margin

- **Formula:** (Revenue - Operating Expenses + Depreciation + Amortization) / Revenue x 100
  - Alternatively: EBITDA / Revenue x 100
- **What it measures:** Operating profitability before non-cash charges and capital structure effects.
- **Use case:** Best for comparing companies with different depreciation policies or asset ages. Widely used in Indian M&A valuations.

---

## 2. Valuation Ratios

### Price to Earnings Ratio (PE)

- **Formula:** Market Price per Share / Earnings per Share (EPS)
- **Variants:**
  - Trailing PE: Based on last 12 months (TTM) reported earnings
  - Forward PE: Based on estimated next 12 months earnings
- **Indian market context:**
  - Nifty 50 long-term average PE: approximately 20-22x
  - Large-cap range: 15-30x (sector dependent)
  - Mid-cap range: 18-40x
  - Small-cap range: 12-50x (high dispersion)
- **Compare with:** Industry PE (available from Groww data), sector PE, own historical PE range.
- **Limitation:** Not useful for loss-making companies or cyclical businesses at earnings peaks/troughs.

### Price to Book Ratio (PB)

- **Formula:** Market Price per Share / Book Value per Share
  - Book Value per Share = (Total Equity - Preference Share Capital) / Number of Equity Shares
- **Benchmark:**
  - PB < 1: Trading below book value (could be a value trap or genuine undervaluation)
  - PB 1-3: Reasonable for most sectors
  - PB > 5: Justified only for high-ROE businesses (ROE > 20%)
- **Key relationship:** PB = PE x ROE. A stock with PB of 5 and ROE of 25% has an implied PE of 20x.
- **Best for:** Banks, NBFCs, asset-heavy companies.

### Enterprise Value to EBITDA (EV/EBITDA)

- **Formula:**
  - Enterprise Value = Market Cap + Total Debt - Cash and Cash Equivalents
  - EV/EBITDA = Enterprise Value / EBITDA
- **Benchmark:**
  - <8x: Potentially undervalued (or low growth)
  - 8-15x: Fair value range for most sectors
  - 15-25x: Premium valuation (needs high growth)
  - >25x: Expensive (needs exceptional growth or asset value)
- **Advantage:** Capital structure neutral; better than PE for comparing companies with different leverage.

### PEG Ratio (Price/Earnings to Growth)

- **Formula:** PE Ratio / EPS Growth Rate (%)
  - Use 3-year EPS CAGR for growth rate
- **Interpretation:**
  - PEG < 0.5: Potentially significantly undervalued relative to growth
  - PEG 0.5-1.0: Attractively valued relative to growth
  - PEG 1.0-1.5: Fairly valued
  - PEG 1.5-2.0: Getting expensive
  - PEG > 2.0: Expensive relative to growth
- **Caution:** Growth rates should be sustainable; do not use abnormal one-year spikes.

### Price to Sales Ratio (P/S)

- **Formula:** Market Cap / Total Revenue (or Market Price per Share / Revenue per Share)
- **Use case:** Useful for loss-making companies, early-stage companies, or companies with depressed margins.
- **Benchmark:** Highly sector dependent. IT services: 3-6x; FMCG: 5-10x; Commodities: 0.5-2x.

### Earnings Yield

- **Formula:** EPS / Market Price per Share x 100 (i.e., 1/PE x 100)
- **Use case:** Compare with risk-free rate (India 10-year G-Sec yield, typically 6.5-7.5%).
- **Interpretation:** If earnings yield is below the G-Sec yield, the stock is expensive on an absolute basis and needs very high growth to justify the valuation.

### Dividend Yield

- **Formula:** Annual Dividend per Share / Market Price per Share x 100
- **Indian tax context:** Dividends are taxed in the hands of the shareholder at their income tax slab rate (post-2020 Finance Act).
- **Benchmark:** Compare with bank FD rates (6-7%). Dividend yield > FD rate with growth = attractive for income investors.
- **High-yield Indian sectors:** Coal India, Power Grid, IOC, BPCL, Vedanta, ITC (historically).

---

## 3. Growth Metrics

### Revenue Growth (CAGR)

- **Formula:** ((Revenue_End / Revenue_Start) ^ (1/n) - 1) x 100
  - Where n = number of years
- **Benchmark:**
  - >20% CAGR over 5 years: High growth
  - 10-20% CAGR: Moderate growth
  - 5-10% CAGR: Stable/low growth
  - <5% CAGR: Stagnant
- **India context:** Nominal GDP growth of 10-12% is a baseline. Companies growing below nominal GDP are losing real market share.

### EPS Growth

- **Formula:** ((EPS_End / EPS_Start) ^ (1/n) - 1) x 100
- **Comparison:** EPS growth should ideally be higher than revenue growth (indicating margin expansion or operating leverage).
- **Watch for:** EPS growth driven by buybacks (reducing share count) rather than genuine profit growth.

### Profit After Tax (PAT) Growth

- **Formula:** ((PAT_End / PAT_Start) ^ (1/n) - 1) x 100
- **Preferred over EPS growth** when share count has changed significantly due to stock splits, bonuses, or dilution.

### Book Value Growth

- **Formula:** ((Book Value_End / Book Value_Start) ^ (1/n) - 1) x 100
- **Significance:** Compounding book value at a high rate is a hallmark of long-term wealth creators. Warren Buffett's key metric.
- **Target:** > 15% CAGR in book value over 10 years indicates a quality compounder.

---

## 4. Leverage and Solvency Ratios

### Debt to Equity Ratio (D/E)

- **Formula:** Total Debt / Total Shareholder's Equity
- **Benchmark by sector:**

| Sector | Comfortable D/E | Caution | Red Flag |
|--------|-----------------|---------|----------|
| IT Services | 0-0.2 | 0.2-0.5 | >0.5 |
| FMCG | 0-0.3 | 0.3-0.7 | >0.7 |
| Pharmaceuticals | 0-0.5 | 0.5-1.0 | >1.0 |
| Automobiles | 0-0.5 | 0.5-1.0 | >1.0 |
| Infrastructure/Real Estate | 0.5-1.0 | 1.0-2.0 | >2.0 |
| Banks/NBFCs | Not applicable (use CAR) | -- | -- |
| Utilities | 0.5-1.5 | 1.5-2.5 | >2.5 |

### Interest Coverage Ratio (ICR)

- **Formula:** EBIT / Interest Expense
- **Interpretation:**
  - >6x: Very comfortable
  - 4-6x: Comfortable
  - 2-4x: Adequate but monitor
  - 1-2x: Strained; risk of default if business deteriorates
  - <1x: Cannot cover interest from operations; very high risk

### Current Ratio

- **Formula:** Current Assets / Current Liabilities
- **Benchmark:** >1.5 is healthy, <1.0 indicates potential liquidity stress.
- **India context:** Very low current ratios are common in trading companies and NBFCs where the business model involves short-term borrowing.

### Quick Ratio (Acid Test)

- **Formula:** (Current Assets - Inventory) / Current Liabilities
- **Benchmark:** >1.0 indicates the company can meet short-term obligations without selling inventory.
- **Use case:** More conservative than current ratio; especially relevant for companies with slow-moving inventory.

### Cash Ratio

- **Formula:** (Cash + Cash Equivalents) / Current Liabilities
- **Benchmark:** >0.2 indicates adequate cash buffer.
- **Use case:** Most conservative liquidity measure.

### Debt to Asset Ratio

- **Formula:** Total Debt / Total Assets
- **Benchmark:** <0.3 is conservative, 0.3-0.5 is moderate, >0.5 is aggressive.

---

## 5. Efficiency Ratios

### Asset Turnover Ratio

- **Formula:** Revenue / Average Total Assets
- **What it measures:** How efficiently the company uses its assets to generate revenue.
- **Interpretation:** Higher is better. Asset-light businesses (IT, FMCG) have high turnover; asset-heavy businesses (steel, power) have low turnover.
- **DuPont link:** Higher asset turnover can compensate for lower margins in generating ROE.

### Inventory Turnover Ratio

- **Formula:** Cost of Goods Sold / Average Inventory
- **Interpretation:** Higher is better (faster inventory conversion). Very low turnover may indicate obsolete stock.
- **Sector context:** FMCG and retail should have high turnover; capital goods and real estate will have low turnover.

### Inventory Days

- **Formula:** 365 / Inventory Turnover
- **Interpretation:** Fewer days is better. Increasing inventory days can signal slowing demand.

### Receivable Turnover Ratio

- **Formula:** Revenue / Average Trade Receivables
- **Interpretation:** Higher is better (faster collection).

### Receivable Days (Days Sales Outstanding)

- **Formula:** 365 / Receivable Turnover (or Average Receivables / Revenue x 365)
- **Interpretation:** Fewer days is better. Increasing receivable days can signal:
  - Channel stuffing (pushing inventory to dealers/distributors)
  - Deteriorating collection efficiency
  - Customer financial stress
- **India context:** Government and PSU receivables in India can have very long payment cycles (90-180 days is not uncommon for infrastructure companies).

### Payable Days

- **Formula:** Average Trade Payables / Cost of Goods Sold x 365
- **Interpretation:** Higher payable days indicate better bargaining power with suppliers but can also signal financial stress if increasing sharply.

### Cash Conversion Cycle (CCC)

- **Formula:** Inventory Days + Receivable Days - Payable Days
- **Interpretation:**
  - Negative CCC: Excellent (company gets paid before it pays suppliers, e.g., some FMCG companies)
  - 0-30 days: Very efficient
  - 30-90 days: Normal for most manufacturing
  - >90 days: Capital-intensive or inefficient working capital management

---

## 6. Cash Flow Metrics

### Free Cash Flow (FCF)

- **Formula:** Operating Cash Flow - Capital Expenditure
- **Interpretation:** Positive and growing FCF is a strong sign. Negative FCF is acceptable only during heavy capex phases for growth-stage companies.
- **Quality check:** FCF yield (FCF / Market Cap) above 4-5% is attractive for mature businesses.

### Operating Cash Flow to PAT Ratio (OCF/PAT)

- **Formula:** Operating Cash Flow / Profit After Tax
- **Benchmark:**
  - >1.0: Excellent cash conversion (cash earnings exceed accounting earnings)
  - 0.8-1.0: Good
  - 0.5-0.8: Moderate; investigate accruals and working capital
  - <0.5: Poor; earnings quality is questionable
- **Why this matters:** Indian companies sometimes show accounting profits that do not translate into cash. This ratio exposes that gap.

### Capex to Revenue Ratio

- **Formula:** Capital Expenditure / Revenue x 100
- **Interpretation:**
  - <5%: Asset-light business (IT, consulting)
  - 5-10%: Moderate capex (FMCG, pharma)
  - 10-20%: Capital-intensive (automobiles, cement)
  - >20%: Very capital-intensive (steel, power, telecom) or heavy expansion phase

### Capex to Depreciation Ratio

- **Formula:** Capital Expenditure / Depreciation
- **Interpretation:**
  - >1.5: Investing for growth (expanding asset base)
  - 1.0-1.5: Maintaining asset base
  - <1.0: Under-investing; may face future capacity issues

### Free Cash Flow Yield

- **Formula:** Free Cash Flow / Market Cap x 100
- **Benchmark:**
  - >5%: Attractive for mature businesses
  - 3-5%: Fair
  - <3%: Expensive on cash flow basis (needs high growth justification)

---

## 7. India-Specific Ownership Metrics

### Promoter Holding Percentage

- **Formula:** Shares held by Promoters and Promoter Group / Total Shares Outstanding x 100
- **Data source:** Quarterly shareholding pattern filed with BSE/NSE under SEBI LODR regulations. Available via Groww MCP `fetch_stocks_fundamental_data` with `view='shareholding_only'`.
- **Assessment guide:**

| Range | Rating | Interpretation |
|-------|--------|---------------|
| >70% | Neutral to Positive | High control but low free float; check for governance |
| 50-70% | Positive | Strong promoter confidence with adequate free float |
| 35-50% | Neutral | Moderate holding; watch trends |
| 20-35% | Caution | Low holding; governance and hostile takeover risk |
| <20% | Evaluate | Could be professional management (Infosys, HDFC Bank) or weak promoter |

### Promoter Pledge Percentage

- **Formula:** Shares Pledged by Promoters / Total Promoter Holding x 100
- **Data source:** Quarterly shareholding pattern disclosures.
- **Assessment guide:**

| Range | Risk Level | Action |
|-------|-----------|--------|
| 0% | No Risk | Ideal scenario |
| 1-10% | Low Risk | Monitor quarterly |
| 10-20% | Moderate Risk | Investigate reason; stronger fundamentals needed |
| 20-40% | High Risk | Red flag; consider reducing exposure |
| >40% | Very High Risk | Avoid unless exceptional circumstances |

### FII Holding Percentage

- **Formula:** Shares held by Foreign Institutional Investors / Total Shares Outstanding x 100
- **Interpretation:**
  - >30%: High FII ownership; stock is sensitive to global risk sentiment and INR/USD
  - 15-30%: Well-discovered by foreign investors
  - 5-15%: Moderate foreign interest
  - <5%: Under-discovered by FIIs or structural concerns

### DII Holding Percentage

- **Formula:** Shares held by Domestic Institutional Investors / Total Shares Outstanding x 100
- **Components:** Mutual funds, insurance companies (LIC), pension funds (EPFO), banks.
- **Significance:** DII flows have become increasingly important due to the growth of SIP-based mutual fund investing in India.

### Public/Retail Holding Percentage

- **Formula:** 100% - Promoter% - FII% - DII%
- **Interpretation:**
  - Very high retail holding (>50%) can indicate speculative interest
  - Increasing retail holding while FII/DII reduce often signals distribution by smart money

---

## 8. Banking-Specific Metrics

These metrics apply specifically to banks and NBFCs, which are analyzed differently from non-financial companies.

### Net Interest Margin (NIM)

- **Formula:** (Interest Income - Interest Expense) / Average Interest-Earning Assets x 100
- **Benchmark:** >3.5% for private banks, >2.5% for PSU banks.

### Gross NPA Ratio

- **Formula:** Gross Non-Performing Assets / Gross Advances x 100
- **Benchmark:** <2% is excellent, 2-5% is acceptable, >5% is concerning.

### Net NPA Ratio

- **Formula:** Net NPAs / Net Advances x 100
- **Benchmark:** <1% is excellent, 1-2% is acceptable, >3% is a red flag.

### CASA Ratio

- **Formula:** (Current Account Deposits + Savings Account Deposits) / Total Deposits x 100
- **Benchmark:** >40% is strong (indicates low cost of funds).

### Provision Coverage Ratio (PCR)

- **Formula:** Cumulative Provisions / Gross NPAs x 100
- **Benchmark:** >70% is comfortable.

### Credit Cost

- **Formula:** Loan Loss Provisions / Average Advances x 100
- **Benchmark:** <1% is healthy for most cycles.

### Slippage Ratio

- **Formula:** Fresh NPAs during the period / Standard Advances at the beginning x 100
- **Benchmark:** <2% annualized is acceptable.

---

## 9. Metric Interpretation Summary Table

Quick reference for evaluating any Indian stock:

| Metric | Excellent | Good | Average | Poor | Red Flag |
|--------|-----------|------|---------|------|----------|
| ROE | >20% | 15-20% | 10-15% | 5-10% | <5% |
| ROCE | >20% | 15-20% | 10-15% | 5-10% | <5% |
| OPM | >25% | 15-25% | 10-15% | 5-10% | <5% |
| Debt/Equity | <0.2 | 0.2-0.5 | 0.5-1.0 | 1.0-2.0 | >2.0 |
| Interest Coverage | >6x | 4-6x | 2-4x | 1-2x | <1x |
| Current Ratio | >2.0 | 1.5-2.0 | 1.0-1.5 | 0.7-1.0 | <0.7 |
| OCF/PAT | >1.2 | 0.8-1.2 | 0.5-0.8 | 0.2-0.5 | <0.2 |
| Promoter Holding | >60% | 50-60% | 35-50% | 20-35% | <20% |
| Promoter Pledge | 0% | 1-10% | 10-20% | 20-40% | >40% |
| PE vs Industry PE | >20% discount | 0-20% discount | At par | 0-20% premium | >20% premium |
| PEG Ratio | <0.5 | 0.5-1.0 | 1.0-1.5 | 1.5-2.0 | >2.0 |
| FCF Yield | >6% | 4-6% | 2-4% | 0-2% | Negative |
| Dividend Yield | >4% | 2-4% | 1-2% | 0.5-1% | 0% (no dividend) |
| Revenue CAGR (5Y) | >20% | 12-20% | 8-12% | 3-8% | <3% |
| EPS CAGR (5Y) | >25% | 15-25% | 8-15% | 0-8% | Negative |

---

## 10. Formulas Quick Reference

A compact reference for all formulas:

```
PROFITABILITY
  ROE              = Net Profit / Avg Shareholder Equity x 100
  ROA              = Net Profit / Avg Total Assets x 100
  ROCE             = EBIT / (Total Assets - Current Liabilities) x 100
  ROIC             = NOPAT / Invested Capital x 100
  Operating Margin = Operating Profit / Revenue x 100
  Net Margin       = Net Profit / Revenue x 100
  EBITDA Margin    = EBITDA / Revenue x 100

VALUATION
  PE               = Market Price / EPS
  PB               = Market Price / Book Value per Share
  EV/EBITDA        = (Market Cap + Debt - Cash) / EBITDA
  PEG              = PE / EPS Growth Rate
  P/S              = Market Cap / Revenue
  Earnings Yield   = EPS / Market Price x 100  (or 1/PE x 100)
  Dividend Yield   = DPS / Market Price x 100

GROWTH
  Revenue CAGR     = (Revenue_End / Revenue_Start) ^ (1/n) - 1
  EPS CAGR         = (EPS_End / EPS_Start) ^ (1/n) - 1
  Book Value CAGR  = (BV_End / BV_Start) ^ (1/n) - 1

LEVERAGE
  Debt/Equity      = Total Debt / Total Equity
  Interest Cover   = EBIT / Interest Expense
  Current Ratio    = Current Assets / Current Liabilities
  Quick Ratio      = (Current Assets - Inventory) / Current Liabilities
  Cash Ratio       = Cash / Current Liabilities
  Debt/Asset       = Total Debt / Total Assets
  Net Debt/EBITDA  = (Total Debt - Cash) / EBITDA

EFFICIENCY
  Asset Turnover   = Revenue / Avg Total Assets
  Inventory Turn   = COGS / Avg Inventory
  Inventory Days   = 365 / Inventory Turnover
  Receivable Days  = Avg Receivables / Revenue x 365
  Payable Days     = Avg Payables / COGS x 365
  Cash Conv Cycle  = Inv Days + Recv Days - Pay Days

CASH FLOW
  FCF              = Operating Cash Flow - Capex
  OCF/PAT          = Operating Cash Flow / Profit After Tax
  Capex/Revenue    = Capital Expenditure / Revenue x 100
  Capex/Deprn      = Capital Expenditure / Depreciation
  FCF Yield        = FCF / Market Cap x 100

OWNERSHIP (INDIA)
  Promoter %       = Promoter Shares / Total Shares x 100
  Pledge %         = Pledged Shares / Promoter Shares x 100
  FII %            = FII Shares / Total Shares x 100
  DII %            = DII Shares / Total Shares x 100
  Public %         = 100 - Promoter% - FII% - DII%
```

fundamental-analysis.md 18.3 KB

# Fundamental Analysis Framework for Indian Stocks

This reference document provides the complete fundamental analysis framework adapted for Indian equity markets (NSE/BSE). Use this framework when performing Analysis Type 2 (Fundamental Analysis) or Analysis Type 4 (Comprehensive Investment Report).

---

## 1. Business Quality Assessment

### 1.1 Competitive Moat Analysis

Evaluate the company's durable competitive advantages. In the Indian context, consider:

| Moat Type | Description | Indian Market Examples |
|-----------|-------------|----------------------|
| Brand Power | Strong consumer recognition and pricing power | Asian Paints, Titan, Hindustan Unilever |
| Cost Advantage | Structural cost leadership through scale or process | Tata Steel, UltraTech Cement, Jio |
| Network Effects | Value increases with more users/participants | NSE, BSE, IRCTC, Info Edge (Naukri) |
| Switching Costs | High cost for customers to switch providers | TCS, Infosys (enterprise IT), HDFC Bank (retail banking) |
| Regulatory License | Government licenses or approvals creating barriers | Coal India, IRCTC, ITC (cigarettes), SBI |
| Distribution Network | Extensive reach that competitors cannot easily replicate | Hindustan Unilever, Dabur, ITC, Maruti Suzuki |
| Intellectual Property | Patents, proprietary technology, trade secrets | Sun Pharma, Dr. Reddy's, Biocon |

**Scoring:**
- 3+ strong moats: Exceptional (9-10)
- 2 strong moats: Strong (7-8)
- 1 strong moat: Moderate (5-6)
- No clear moat: Weak (1-4)

### 1.2 Management Quality

Assess management using these India-specific criteria:

**Promoter Track Record:**
- Years of promoter involvement in the business
- Capital allocation history (returns on invested capital vs cost of capital)
- Treatment of minority shareholders (dividend policy, buybacks, related party transactions)
- Personal integrity and regulatory history (any SEBI actions, loan defaults, or legal issues)
- Succession planning (especially for family-run businesses)

**Corporate Governance Red Flags (India-Specific):**
- Excessive related party transactions (check annual report disclosures)
- Frequent auditor changes or qualified audit opinions
- Pledging of promoter shares (>20% is a red flag)
- Complex corporate structures with multiple listed entities and cross-holdings
- Non-compliance with SEBI LODR (Listing Obligations and Disclosure Requirements)
- Disproportionate board composition (too many promoter-related directors)
- Delays in filing results or regulatory submissions
- Divergence between reported and actual financials flagged by auditors

**Management Quality Score:**

| Factor | Weight | Assessment Criteria |
|--------|--------|-------------------|
| Capital allocation | 25% | ROIC vs WACC over 5 years, acquisition track record |
| Integrity/governance | 25% | Related party transactions, auditor reports, regulatory actions |
| Execution capability | 20% | Revenue/profit growth vs guidance, project completion track record |
| Strategic vision | 15% | Industry positioning, R&D investment, market share trends |
| Shareholder friendliness | 15% | Dividend history, buybacks, communication quality |

### 1.3 Market Position

- Market share in primary business segment (and trend over 3-5 years)
- Position in value chain (upstream, midstream, downstream)
- Customer concentration risk (top 10 customers as % of revenue)
- Geographic diversification (domestic vs export revenue split)
- Industry growth rate and company's growth relative to industry

---

## 2. Financial Health Assessment

### 2.1 Profitability Analysis

Evaluate profitability trends over at least 3-5 fiscal years (Indian FY: April-March).

**Key Profitability Metrics:**

| Metric | Formula | Healthy Range | Red Flag |
|--------|---------|--------------|----------|
| ROE | Net Profit / Shareholder Equity | >15% | <10% or declining trend |
| ROA | Net Profit / Total Assets | >5% (non-financial) | <2% |
| ROCE | EBIT / Capital Employed | >15% | <10% |
| ROIC | NOPAT / Invested Capital | >WACC (typically >12%) | <8% |
| Operating Margin | Operating Profit / Revenue | Sector-dependent | Declining trend |
| Net Margin | Net Profit / Revenue | Sector-dependent | Volatile or declining |
| EBITDA Margin | EBITDA / Revenue | Sector-dependent | Sustained contraction |

**Interpretation Guidelines:**
- Look for margin expansion or stability over 5 years
- Compare margins with sector peers (not just absolute numbers)
- Investigate one-time items that distort margins
- Check if ROE is driven by leverage (use DuPont decomposition: ROE = Net Margin x Asset Turnover x Equity Multiplier)

### 2.2 Cash Flow Quality

Cash flow analysis is critical in the Indian market where earnings management can be a concern.

**Cash Flow Health Checks:**

| Check | What to Look For | Warning Sign |
|-------|-----------------|-------------|
| OCF/PAT Ratio | Operating cash flow / Profit after tax | Consistently below 0.8 |
| FCF Generation | OCF minus capex | Negative FCF for 3+ consecutive years (unless in heavy capex phase) |
| Cash Conversion Cycle | Days inventory + Days receivable - Days payable | Increasing trend, especially receivable days |
| Capex Quality | Maintenance capex vs growth capex | All capex is maintenance with no growth |
| Dividend Coverage | FCF / Dividends paid | Below 1.0 (paying dividends from borrowed money) |

**India-Specific Cash Flow Considerations:**
- GST input credit impact on working capital
- Seasonal cash flow patterns (festive season Q3 for consumer companies)
- Government receivables for infrastructure/defence companies (payment delays are common)
- Advance tax payments timing (June, September, December, March)

### 2.3 Balance Sheet Strength

**Debt Analysis:**

| Metric | Formula | Comfortable | Caution | Danger |
|--------|---------|-------------|---------|--------|
| Debt/Equity | Total Debt / Shareholder Equity | <0.5 | 0.5-1.5 | >1.5 (non-financial) |
| Interest Coverage | EBIT / Interest Expense | >4x | 2-4x | <2x |
| Net Debt/EBITDA | (Total Debt - Cash) / EBITDA | <2x | 2-4x | >4x |
| Current Ratio | Current Assets / Current Liabilities | >1.5 | 1.0-1.5 | <1.0 |
| Quick Ratio | (Current Assets - Inventory) / Current Liabilities | >1.0 | 0.5-1.0 | <0.5 |

**India-Specific Balance Sheet Items:**
- Check for contingent liabilities (tax disputes, litigation) which are common in India
- Examine deferred tax assets (large DTA can indicate accumulated losses)
- Look at inter-corporate deposits and loans to group companies
- Review foreign currency borrowings (ECBs, FCCBs) for currency risk
- Check for revaluation reserves inflating net worth

---

## 3. India-Specific Ownership Metrics

### 3.1 Promoter Holding Analysis

Promoter holding is one of the most important metrics in Indian equity analysis. Promoters are the controlling shareholders, often the founding family or business group.

**Promoter Holding Interpretation:**

| Holding Range | Interpretation | Action |
|--------------|----------------|--------|
| >70% | Very high control, limited free float, potential liquidity issues | Note limited float; governance is key |
| 50-70% | Strong promoter confidence, good control | Generally positive signal |
| 35-50% | Moderate holding, adequate control | Watch for any reduction |
| 20-35% | Lower end, potential vulnerability to hostile takeover | Monitor carefully |
| <20% | Professional management or dispersed ownership | Evaluate management quality separately |

**Trend Analysis:**
- Increasing promoter holding: Positive signal (creeping acquisition, buybacks by promoter entity)
- Decreasing promoter holding: Could be negative (selling), neutral (dilution due to equity raise), or positive (ESOP dilution for talent retention)
- Always check the reason for changes in promoter holding from exchange filings

### 3.2 Promoter Pledge Analysis

Promoter pledge percentage is the proportion of promoter-held shares pledged as collateral for loans. This is a critical risk indicator unique to the Indian market.

**Why Pledging is Risky:**
- If share price falls, lenders may invoke the pledge and sell shares in the open market
- Forced selling creates additional downward pressure on the stock price
- It can trigger a cascade effect (price falls, more pledged shares are sold, price falls further)
- It often indicates financial stress at the promoter group level

**Pledge Assessment:**

| Pledge % | Risk Level | Interpretation |
|----------|-----------|----------------|
| 0% | None | Best case scenario |
| 1-10% | Low | Acceptable, but monitor |
| 10-20% | Moderate | Watch closely; understand the reason |
| 20-40% | High | Red flag; need strong business fundamentals to offset |
| 40-60% | Very High | Serious concern; significant downside risk |
| >60% | Critical | Extreme risk; potential for cascade selling |

### 3.3 Institutional Holding

**FII (Foreign Institutional Investor) Holding:**
- Increasing FII holding: Global confidence in the company; can be volatile (hot money)
- Decreasing FII holding: Could indicate global risk-off, sector rotation, or company-specific concerns
- High FII holding (>30%): Stock may be more volatile due to global events and currency movements
- Low FII holding (<5%): Under-researched opportunity or structural concerns

**DII (Domestic Institutional Investor) Holding:**
- Includes mutual funds, insurance companies (LIC), pension funds
- Increasing DII holding: Domestic confidence, SIP-driven flows
- LIC holding is a significant indicator (LIC is the largest domestic institutional investor)
- Mutual fund holding trends reflect fund manager sentiment

**Shareholding Pattern Changes to Watch:**
- Significant quarter-over-quarter changes in any category
- Simultaneous FII and DII reduction (bearish signal)
- Simultaneous FII and DII increase (strong bullish signal)
- Increase in retail/public holding often indicates smart money distribution

---

## 4. Valuation Framework

### 4.1 Relative Valuation

Compare the stock's valuation multiples against:

1. **Own historical range** (3-5 year PE, PB band)
2. **Industry/Sector average** (Industry PE from Groww data)
3. **Direct peers** (3-5 comparable companies)

**Valuation Multiples and Interpretation:**

| Multiple | Use Case | Premium Justified When | Discount Expected When |
|----------|---------|----------------------|----------------------|
| PE Ratio | Stable earnings companies | High growth, high ROE, strong moat | Low growth, cyclical, governance issues |
| PB Ratio | Asset-heavy businesses, banks | High ROE (>15%), quality assets | Low ROE, stressed assets |
| EV/EBITDA | Capital structure neutral comparison | Asset-light, growth companies | Commodity, cyclical businesses |
| PEG Ratio | Growth companies | PEG <1 (growth justifies PE) | PEG >2 (expensive relative to growth) |
| Price/Sales | Loss-making or early-stage companies | High margin potential | Low margin business |
| Dividend Yield | Income-oriented analysis | Yield > FD rate with growth | Yield declining, payout unsustainable |

**India-Specific Valuation Considerations:**
- Indian market generally trades at a PE premium to emerging market peers due to strong growth, demographics, and governance improvements
- Small and mid-caps often trade at a premium to large-caps during bull markets (and at a discount during corrections)
- PSU (Public Sector Undertaking) companies typically trade at a discount due to government ownership and efficiency concerns
- Compare dividend yield with the prevailing bank fixed deposit rate (typically 6-7%)
- Factor in the tax treatment: Long-term capital gains (>1 year) taxed at 12.5% above Rs.1.25 lakh; short-term capital gains (<1 year) at 20%

### 4.2 Absolute Valuation Reference

For absolute valuation context (not a formal DCF but directional indicators):

- **Earnings Yield vs 10Y Government Bond Yield**: Earnings yield (1/PE) should ideally be higher than the risk-free rate (~7% in India). If the stock's earnings yield is below the bond yield, the stock needs very strong growth to justify its valuation.
- **PEG Ratio**: A PEG ratio below 1.0 suggests the stock's growth rate justifies its PE. PEG between 1.0-1.5 is fair. Above 2.0 is expensive.
- **Price to Free Cash Flow**: Lower is better. Compare with peers.

---

## 5. Sector-Specific Metrics

### 5.1 Banking and Financial Services

| Metric | Description | Healthy Range |
|--------|-------------|--------------|
| NIM (Net Interest Margin) | (Interest Income - Interest Expense) / Avg Earning Assets | 3-4% for private banks, 2.5-3.5% for PSU banks |
| Gross NPA % | Gross Non-Performing Assets / Gross Advances | <2% excellent, 2-5% acceptable, >5% concern |
| Net NPA % | Net NPAs / Net Advances | <1% excellent, 1-3% acceptable, >3% concern |
| CASA Ratio | (Current Account + Savings Account) / Total Deposits | >40% is strong (low cost of funds) |
| Provision Coverage Ratio | Provisions / Gross NPAs | >70% is strong |
| Credit-Deposit Ratio | Advances / Deposits | 70-80% optimal |
| Capital Adequacy Ratio (CAR) | (Tier 1 + Tier 2 Capital) / Risk Weighted Assets | >12% (SEBI minimum: 9%) |
| ROA (Banks) | Net Profit / Total Assets | >1.0% is excellent for banks |
| Cost to Income Ratio | Operating Expenses / Operating Income | <50% is efficient |

### 5.2 IT Services

| Metric | Description | Healthy Range |
|--------|-------------|--------------|
| Revenue per Employee | Total Revenue / Employee Count | >Rs.40L for top-tier, >Rs.25L for mid-tier |
| Utilization Rate | Billable employees / Total employees | 80-85% optimal |
| Attrition Rate | Employees leaving / Total employees (annualized) | <15% is healthy |
| Deal TCV (Total Contract Value) | Value of new deals signed | Growing QoQ is positive |
| Offshore-Onsite Mix | % of work done from India | Higher offshore = higher margins |
| Client Concentration | Revenue from top 5/10 clients | Top 10 < 30% is well-diversified |
| USD Revenue Growth | Revenue growth in constant currency | >10% YoY is strong |

### 5.3 Pharmaceuticals

| Metric | Description | What to Watch |
|--------|-------------|---------------|
| R&D Spend (% of Revenue) | R&D investment intensity | 6-10% for generics, 15%+ for innovators |
| ANDA Pipeline | Abbreviated New Drug Applications filed with US FDA | More filings = future revenue potential |
| US FDA Observations | Form 483 observations and warning letters | Zero is best; any warning letter is a red flag |
| Domestic vs Export Split | Geographic revenue mix | Export-heavy = currency risk but larger market |
| API vs Formulation | Backward integration status | Integrated companies have better margins |
| Para IV Filings | First-to-file generic opportunities | Potential for 180-day exclusivity in US market |

### 5.4 Automobile

| Metric | Description | What to Watch |
|--------|-------------|---------------|
| Monthly Dispatches | Vehicles sold per month | YoY growth trends, market share |
| Realization per Vehicle | Revenue per unit sold | Mix improvement (more SUVs, premium) = positive |
| EBITDA per Vehicle | Operating profit per unit | Improving = positive |
| Capacity Utilization | Production / Installed capacity | >80% = need for capex; <60% = overcapacity |
| Order Book | Pending orders for delivery | High order book = revenue visibility |
| EV Transition | Electric vehicle plans and execution | Critical for future positioning |

### 5.5 Real Estate

| Metric | Description | What to Watch |
|--------|-------------|---------------|
| Pre-sales / Bookings | Value of apartments/commercial space sold | Growth trend, realization per sq ft |
| Collections | Cash received from customers | Should be >70% of pre-sales |
| Net Debt / Equity | Leverage for the sector | <0.5 is strong for real estate |
| Land Bank | Area available for future development | In years of development pipeline |
| Unsold Inventory | Completed but unsold units | <12 months of sales is healthy |
| Launch Pipeline | New projects to be launched | Future growth visibility |

### 5.6 FMCG (Fast-Moving Consumer Goods)

| Metric | Description | What to Watch |
|--------|-------------|---------------|
| Volume Growth | Units sold growth (not value) | >5% is strong; negative is concerning |
| Rural vs Urban Split | Revenue breakdown | Rural growth indicates market penetration |
| Distribution Reach | Number of outlets, direct distribution | Wider reach = competitive moat |
| New Product Contribution | Revenue from launches <2 years old | 5-10% indicates innovation culture |
| Ad Spend (% of Revenue) | Brand building investment | 8-12% is typical for FMCG |
| Gross Margin | Gross profit / Revenue | >50% typical for branded FMCG |

---

## 6. Fundamental Score Card

Use this scorecard to assign a composite fundamental score from 1-10.

| Category | Weight | Score (1-10) | Key Factors |
|----------|--------|-------------|-------------|
| Business Quality | 25% | -- | Moat strength, market position, industry growth |
| Management Quality | 20% | -- | Track record, governance, capital allocation |
| Financial Health | 20% | -- | Profitability, cash flows, balance sheet |
| Valuation | 15% | -- | Relative and absolute valuation |
| Growth Potential | 10% | -- | Revenue, earnings, market expansion |
| Shareholding Quality | 10% | -- | Promoter holding, pledge, FII/DII trends |

**Composite Score = Weighted average of all category scores**

| Score Range | Rating | Interpretation |
|-------------|--------|---------------|
| 8.0 - 10.0 | Excellent | Strong fundamental case; potential long-term compounder |
| 6.5 - 7.9 | Good | Solid fundamentals with some areas to monitor |
| 5.0 - 6.4 | Average | Mixed fundamental picture; selective investment |
| 3.5 - 4.9 | Below Average | Fundamental concerns outweigh positives |
| 1.0 - 3.4 | Poor | Significant fundamental weaknesses; avoid or speculative only |

---

## 7. Data Collection Checklist

Before completing a fundamental analysis, ensure you have gathered:

- [ ] Current market price and market capitalization
- [ ] 3-5 years of income statement data (revenue, EBITDA, PAT)
- [ ] 3-5 years of balance sheet data (debt, equity, assets)
- [ ] 3-5 years of cash flow data (OCF, FCF, capex)
- [ ] Key ratios: PE, PB, ROE, ROA, ROCE, Debt/Equity, Current Ratio
- [ ] Shareholding pattern: Promoter %, Pledge %, FII %, DII %
- [ ] Shareholding trend over recent quarters
- [ ] Sector/industry PE and PB for comparison
- [ ] 3-5 peer companies with comparable metrics
- [ ] Recent management commentary or concall highlights
- [ ] Any pending regulatory actions or litigation
- [ ] Upcoming corporate actions (dividends, splits, bonuses, rights issues)
- [ ] Recent news and analyst reports

SKILL.md 15.6 KB

---
name: india-stock-analysis
description: Use when user requests analysis of Indian stocks, fundamental assessment, technical review, comparisons, or investment reports for NSE/BSE listed companies.
---

# India Stock Analysis Skill

Analyze Indian stocks listed on NSE and BSE using broker MCP tools and web search. All analysis is denominated in INR and follows Indian fiscal year conventions (April-March). No API keys are required.

## Data Sources

Use whichever broker MCP is connected. Both provide equivalent data for stock analysis.

### Option A: Groww MCP (if connected)
- `fetch_stocks_fundamental_data` -- Financials, ratios, shareholding, mutual fund holdings
- `fetch_historical_candle_data` -- OHLCV price history
- `get_historical_technical_indicators` -- RSI, MACD, Bollinger, SMA, EMA, SuperTrend, VWAP, ADX, and more
- `get_ltp` -- Live/last traded price and open interest
- `get_quotes_and_depth` -- Real-time bid/ask and market depth
- `curate_symbols` -- Resolve stock symbols and exchange
- `fetch_market_movers_and_trending_stocks_funds` -- Market movers, gainers, losers
- `fetch_fundamentals_screener` -- Screen stocks by fundamental criteria
- `fetch_technical_screener` -- Screen stocks by technical signals
- `search_stock_and_others_symbol` -- Search for stocks, indices, and companies
- `resolve_market_time_and_calendar` -- Current market time, trading days, holidays

### Option B: Zerodha Kite MCP (if connected)
- `get_ltp` -- Last traded price for instruments
- `get_quotes` -- Real-time market quotes with depth
- `get_ohlc` -- OHLC data for instruments
- `get_historical_data` -- Historical OHLCV candle data
- `search_instruments` -- Search and resolve trading instruments
- `get_holdings` -- User's portfolio holdings
- `get_positions` -- Current trading positions
- `get_margins` -- Account margin details
- `get_profile` -- User profile information

### Supplementary
- Web search for news, analyst reports, sector developments, and regulatory updates
- yfinance (free, no API key) as fallback for historical data

## Workflow

When a user requests stock analysis, determine which analysis type is needed and follow the corresponding workflow below. If the user does not specify, default to **Comprehensive Investment Report**.

---

### Analysis Type 1: Basic Stock Information

Use when the user asks for a quick overview, current price, or summary of a stock.

**Steps:**

1. **Resolve the symbol.** Call `curate_symbols` or `search_stock_and_others_symbol` with the company name to obtain the correct trading symbol and exchange (NSE/BSE).

2. **Fetch current price.** Call `get_ltp` with the resolved trading symbol to get the last traded price, day change, and percentage change.

3. **Fetch key fundamental stats.** Call `fetch_stocks_fundamental_data` with `view='stats_only'` and include stats: `marketCap`, `peRatio`, `pbRatio`, `roe`, `epsTtm`, `dividendYieldInPercent`, `industryPe`, `bookValue`, `debtToEquity`, `faceValue`.

4. **Fetch recent price history.** Call `fetch_historical_candle_data` for the last 1 year with daily interval (`interval_in_minutes='1440'`) to determine 52-week high/low and YTD performance.

5. **Search for recent news.** Use web search for recent news about the company (last 30 days).

6. **Present the output** in this format:

```
## [Company Name] ([Exchange]: [Symbol])

**Current Price:** Rs.[LTP] ([+/-change] / [+/-change%])
**Market Cap:** Rs.[value] Cr
**Sector:** [sector]

### Key Metrics
| Metric            | Value         |
|--------------------|---------------|
| PE Ratio           | [value]       |
| Industry PE        | [value]       |
| PB Ratio           | [value]       |
| EPS (TTM)          | Rs.[value]    |
| ROE                | [value]%      |
| Debt/Equity        | [value]       |
| Dividend Yield     | [value]%      |
| Book Value         | Rs.[value]    |
| Face Value         | Rs.[value]    |

### 52-Week Range
- **High:** Rs.[value] ([date])
- **Low:** Rs.[value] ([date])
- **Current vs High:** [x]% below 52W high

### YTD Performance
- **1 Jan to Today:** [+/-x]%

### Recent News
- [headline 1] -- [source, date]
- [headline 2] -- [source, date]
- [headline 3] -- [source, date]
```

---

### Analysis Type 2: Fundamental Analysis

Use when the user asks for fundamental analysis, business quality, financials, valuation, or investment merit.

**Steps:**

1. **Resolve the symbol** as in Analysis Type 1.

2. **Fetch full fundamental data.** Call `fetch_stocks_fundamental_data` with `view='all'` and stats: `marketCap`, `peRatio`, `pbRatio`, `roe`, `epsTtm`, `dividendYieldInPercent`, `industryPe`, `bookValue`, `debtToEquity`, `faceValue`, `returnOnAssets`, `returnOnEquity`, `operatingProfitMargin`, `netProfitMargin`, `quickRatio`, `cashRatio`, `debtToAsset`, `evToSales`, `evToEbitda`, `earningsYield`, `sectorPe`, `sectorPb`, `sectorDivYield`, `sectorRoe`, `sectorRoce`, `priceToOcf`, `priceToFcf`, `pePremiumVsSector`, `pbPremiumVsSector`, `divYieldVsSector`, `currentRatio`, `priceToSales`, `pegRatio`, `roic`. Include optional financial items `['*']` to get complete financial statements.

3. **Fetch shareholding data.** Call `fetch_stocks_fundamental_data` with `view='shareholders_and_mutual_funds'` to get promoter holding, FII/DII breakdown, pledge percentage, and top mutual fund holders.

4. **Perform web search** for analyst reports, management commentary, and sector outlook.

5. **Analyze and present** using the framework in `references/fundamental-analysis.md`:

   **a. Business Quality Assessment**
   - What does the company do? What is its competitive moat?
   - Management quality and promoter track record
   - Market position and competitive advantages
   - Corporate governance indicators

   **b. Financial Health**
   - Revenue and profit trends (3-5 year view using financial statements)
   - Margin analysis (operating, net, EBITDA)
   - Cash flow quality (operating cash flow vs reported profit)
   - Balance sheet strength (debt levels, current ratio, interest coverage)

   **c. Shareholding Pattern (India-Specific)**
   - Promoter holding percentage (>50% generally positive, <30% caution)
   - Promoter pledge percentage (>20% is a red flag, >50% is a serious concern)
   - FII holding trend (increasing = positive signal)
   - DII holding trend
   - Change in shareholding over recent quarters

   **d. Valuation**
   - PE vs Industry PE and Sector PE (premium/discount)
   - PB vs Sector PB
   - PEG ratio assessment
   - EV/EBITDA comparison
   - Earnings yield vs risk-free rate (India 10Y government bond yield ~7%)

   **e. Growth Assessment**
   - Revenue growth trajectory
   - EPS growth trend
   - Order book / pipeline visibility (if applicable)
   - Capex plans and return on invested capital

   **f. Risk Factors**
   - Company-specific risks
   - Sector/regulatory risks
   - Promoter-related risks (pledge, related party transactions)
   - Macro risks (currency, interest rates, commodity prices)

6. **Assign a fundamental score** from 1-10 based on the framework in `references/fundamental-analysis.md`.

---

### Analysis Type 3: Technical Analysis

Use when the user asks for technical analysis, chart patterns, entry/exit levels, or trading signals.

**Steps:**

1. **Resolve the symbol** as in Analysis Type 1.

2. **Determine the market time context.** Call `resolve_market_time_and_calendar` to get the current date and market status.

3. **Fetch price history.** Call `fetch_historical_candle_data` for multiple timeframes:
   - Daily candles for the last 6 months (trend analysis)
   - Weekly candles for the last 2 years (long-term trend)
   - If intraday analysis is needed: 5-minute or 15-minute candles for the last few days

4. **Fetch technical indicators.** Call `get_historical_technical_indicators` with these indicators:
   - Trend: `sma` (20, 50, 200 period), `ema` (20 period), `supertrend`
   - Momentum: `rsi` (14 period), `macd` (12, 26, 9), `stochastic`, `williams_r`, `adx`
   - Volatility: `bollinger` (20 period, 2 std), `atr`, `keltner`
   - Volume: `vwap`, `obv`, `mfi`
   - Reversal: `parabolic_sar`
   - Support/Resistance: `pivot_points`

   Note: Run multiple calls if needed for different SMA periods (20, 50, 200).

5. **Fetch candlestick patterns** (optional). Call `get_historical_candlestick_patterns` if the user asks for pattern analysis.

6. **Analyze and present:**

   **a. Trend Analysis**
   - Primary trend (weekly): uptrend / downtrend / sideways
   - Secondary trend (daily): direction and strength
   - Price position relative to key SMAs (20, 50, 200 DMA)
   - Golden cross / death cross status (50 DMA vs 200 DMA)
   - SuperTrend direction

   **b. Support and Resistance Levels**
   - Identify key support levels from pivot points, recent swing lows, and round numbers
   - Identify key resistance levels from pivot points, recent swing highs, and round numbers
   - Present as a clear table

   **c. Momentum Indicators**
   - RSI: Current value, overbought/oversold, divergences
   - MACD: Signal line crossover, histogram trend, zero-line position
   - Stochastic: %K/%D crossover, overbought/oversold zones
   - ADX: Trend strength (>25 = trending, <20 = ranging)

   **d. Volatility Assessment**
   - Bollinger Band width and position (near upper/lower/middle band)
   - ATR value and trend (expanding/contracting volatility)
   - Keltner Channel position

   **e. Volume Analysis**
   - Volume trend (increasing/decreasing with price moves)
   - OBV trend (confirming or diverging from price)
   - MFI reading (money flow)
   - VWAP position (intraday context)

   **f. Pattern Recognition** (if applicable)
   - Candlestick patterns detected
   - Chart patterns (head and shoulders, triangles, channels)
   - Significance and reliability rating

   **g. Trading Levels**
   ```
   | Level Type       | Price (Rs.) | Notes                  |
   |-------------------|-------------|------------------------|
   | Resistance 3      | [value]     | [context]              |
   | Resistance 2      | [value]     | [context]              |
   | Resistance 1      | [value]     | [context]              |
   | Current Price      | [value]     | --                     |
   | Support 1          | [value]     | [context]              |
   | Support 2          | [value]     | [context]              |
   | Support 3          | [value]     | [context]              |
   ```

   **h. Technical Outlook**
   - Short-term (1-2 weeks): bullish / bearish / neutral
   - Medium-term (1-3 months): bullish / bearish / neutral
   - Key levels to watch and potential triggers

---

### Analysis Type 4: Comprehensive Investment Report

Use when the user asks for a full report, comprehensive analysis, or investment recommendation. This is the default when no specific type is requested.

**Steps:**

1. **Execute all steps from Analysis Types 1, 2, and 3** above. Make parallel tool calls wherever possible to speed up data gathering.

2. **Perform additional research:**
   - Web search for recent analyst recommendations and target prices
   - Web search for upcoming catalysts (earnings dates, AGM, corporate actions)
   - Web search for sector/macro developments affecting the stock
   - Fetch peer comparison data using `fetch_stocks_fundamental_data` for 3-5 peers

3. **Compile the report** using the template in `assets/report-template.md`:

   **a. Executive Summary**
   - Investment recommendation: Strong Buy / Buy / Hold / Sell / Strong Sell
   - Conviction level: High / Medium / Low
   - Key thesis in 2-3 sentences

   **b. Company Overview**
   - Business description, history, and market position
   - Sector classification and listing details (NSE/BSE)
   - Market cap category (Large Cap / Mid Cap / Small Cap / Micro Cap)

   **c. Investment Thesis**
   - Bull case: 3-5 reasons to buy
   - Bear case: 3-5 reasons for caution
   - Base case scenario

   **d. Fundamental Analysis** (from Analysis Type 2)

   **e. Technical Analysis** (from Analysis Type 3)

   **f. Valuation Analysis**
   - Relative valuation vs peers (PE, PB, EV/EBITDA table)
   - Historical valuation range (PE band over 3-5 years)
   - Sector premium/discount analysis

   **g. Risk Assessment**
   - Risk matrix with probability and impact
   - Company-specific, sector, and macro risks
   - SEBI regulatory considerations if applicable

   **h. Peer Comparison**
   - Table comparing 4-6 key metrics across the company and 3-5 peers
   - Relative positioning commentary

   **i. Catalysts**
   - Near-term (0-3 months): earnings, results, corporate actions
   - Medium-term (3-12 months): expansion plans, order wins, regulatory changes
   - Long-term (1-3 years): structural growth drivers

   **j. Conclusion**
   - Summary of the investment case
   - Key monitoring parameters
   - Suggested review triggers

   **k. Disclaimer**
   - Standard investment disclaimer (this is not investment advice, for educational purposes only)

4. **Format the entire report** following the structure in `assets/report-template.md`.

---

## India-Specific Considerations

Throughout all analysis types, apply these India-specific guidelines:

- **Currency**: All prices and financial figures in INR (Rs.). Use Cr (Crore = 10 million) and L (Lakh = 100,000) as appropriate for Indian market convention.
- **Fiscal Year**: Indian companies follow April-March fiscal year. Reference as FY24 (April 2023 - March 2024), FY25, etc.
- **Market Hours**: NSE/BSE trade 9:15 AM to 3:30 PM IST, Monday to Friday (excluding market holidays).
- **Promoter Holding**: A critical India-specific metric. Interpret as follows:
  - Above 70%: Very high promoter control, could limit free float
  - 50-70%: Strong promoter confidence
  - 30-50%: Moderate, watch for changes
  - Below 30%: Low promoter stake, potential governance concern
- **Promoter Pledge**: Shares pledged by promoters as collateral for loans.
  - 0%: Best case
  - 1-10%: Acceptable
  - 10-20%: Monitor closely
  - Above 20%: Red flag
  - Above 50%: Serious concern
- **FII/DII Holdings**: Foreign and Domestic Institutional Investor holdings indicate institutional confidence.
- **Regulatory Context**: SEBI regulations, LODR compliance, insider trading norms.
- **Index Membership**: Nifty 50, Nifty Next 50, Nifty 100, Nifty 500, Nifty Midcap 100, Nifty Smallcap 100, sectoral indices.
- **Dual Listing**: Most Indian companies are listed on both NSE and BSE. NSE is typically preferred for liquidity. Use NSE data unless BSE is specifically requested.
- **Circuit Limits**: Indian exchanges have upper and lower circuit limits. Mention if relevant.
- **T+1 Settlement**: Indian markets follow T+1 settlement cycle.
- **Lot Size (F&O)**: If the stock is in the F&O segment, mention the lot size.

## Output Guidelines

- Use clear markdown formatting with tables, headers, and bullet points.
- Present numerical data in tables where possible for easy comparison.
- Bold key metrics and important observations.
- Include data timestamps so the user knows how current the data is.
- Always end reports with the standard disclaimer.
- When comparing with peers, use the same set of metrics consistently.
- Round financial ratios to 2 decimal places.
- Express large numbers in Indian convention: Cr (Crores) and L (Lakhs).
- Include percentage changes with directional indicators (up/down arrows or +/- signs).

## Error Handling

- If a broker MCP tool call fails (Groww or Zerodha), note the missing data point and proceed with available data. Try the alternative broker's equivalent tool if available. Use web search as a fallback for critical data.
- If the stock symbol cannot be resolved, ask the user to clarify the company name or provide the NSE/BSE symbol directly.
- If the company is not listed on Indian exchanges, inform the user that this skill is designed for NSE/BSE listed companies.
- If historical data is limited (e.g., recently listed IPO), adjust the analysis timeframes accordingly and note the limitation.

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