Which are the newly listed businesses in India right now?
As per Equitymaster's Stock Screener, here is a list of the newly listed businesses in India right now...
- #1 TATA CAPITAL LTD.
- #2 BILLIONBRAINS GARAGE VENTURES LTD.
- #3 LG ELECTRONICS INDIA LTD.
- #4 LENSKART SOLUTIONS LTD.
- #5 HDB FINANCIAL SERVICES LTD.
These companies have been ranked as per their market capitalization. The higher the market cap, the higher the total value of the company.
Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.
Should I invest in newly listed businesses in India?
Newly listed businesses are companies which have recently come out with their initial public offerings (IPO) to raise funds.
If you are looking to invest in stocks, this can be a great place to start. By investing in the right company, investors stand a chance to earn good returns in the long run.
However, you must study the business well before you invest in it. The trick is to identify the good performers from the rest.
How should you value newly listed businesses in India?
Investing in stocks requires careful analysis of financial data to find out a company's true worth. However, an easier way to find out about a company's performance is to look at its financial ratios.
The two commonly used financial ratios used in the valuation of newly listed business are -
Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more expensive the stock.
Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.