BS 200

Business Standard - - STOCKS - WHAT TH­ESE STOCK PAGES CON­TAIN AND WHY

BS 200 stocks ac­count for over 85 per cent of the vol­ume of shares, value and trades on BSE and NSE. Rou­tine in­for­ma­tion on other stocks are given sep­a­rately un­der Other Traded Stocks. Only NSE quotes are given in ital­ics for all other stocks. For the re­main­ing stocks, we carry BSE quotes.

For BS 200 stocks, the com­pany name is fol­lowed by its BSE group in brack­ets and the sym­bol in­di­cat­ing the paid-up value . Four cat­e­gories of in­for­ma­tion are pro­vided : First, the ba­sic in­for­ma­tion on the day’s trad­ing. In­for­ma­tion is also given on the num­ber of shares traded, and the num­ber of trad­ing trans­ac­tions, as also the price trend with highs/lows (3-month and 52-week).

The third sub-set of in­for­ma­tion is on a par­tic­u­lar stock’s one-year re­turn cal­cu­lated on a point-to-point ba­sis for 1 month and 1 year fol­lowed by mar­ket cap.

In or­der to as­sess a scrip’s fu­ture po­ten­tial, the ta­ble con­tains ra­tios on val­u­a­tion, prof­itabil­ity, strength, growth and ef­fi­ciency. The idea is to get an un­der­stand­ing of why a share may be ac­tive and what is in store at the counter.

In this seg­ment, a new byte of in­for­ma­tion is given ev­ery day:

On Tues­days: 1) Cash P/E, 2) In­dus­try P/E, 3) Quar­ter on quar­ter EPS growth (Q/Q), and, 4) Stand­alone EPS in the trail­ing twelve months (TTM). On Wed­nes­days: quar­terly EPS for the last four quar­ters.On Thurs­days; 1) Div­i­dend yield %, 2) Pay­out ra­tio, 3) Free float, and 4) FII stake. On Fri­days: 1) Book-value per share, 2) Price/book value, 3) Re­turn on Net Worth (RoNW) and, 4) Re­turn on Cap­i­tal Em­ployed (RoCE). On Satur­days, the fo­cus is on the volatil­ity of re­turns us­ing: 1) Al­pha, 2) Beta, 3) Stan­dard de­vi­a­tion, and 4) Mean

P/Es have been ar­rived at by di­vid­ing the day’s clos­ing price by its re­ported earn­ing per share (EPS) for trail­ing 12 months. EPS is cal­cu­lated on the ba­sis of con­sol­i­dated earn­ings wher­ever avail­able.

The in­dus­try P/E is the ag­gre­gate mar­ket cap­i­tal­i­sa­tion of the in­dus­try di­vided by the ag­gre­gate stand­alone net profit (trail­ing 12 months) of the in­dus­try, af­ter ex­clud­ing loss-mak­ing com­pa­nies.

The mar­ket cap­i­tal­i­sa­tion is shown in ~crore and is ar­rived at by mul­ti­ply­ing the clos­ing prices of shares with eq­uity cap­i­tal. It changes ei­ther be­cause more shares have been is­sued (or ex­tin­guished) or the price has moved. Book value is net worth (eq­uity cap­i­tal plus re­serves and sur­plus mi­nus ac­cu­mu­lated losses) di­vided by the num­ber of shares out­stand­ing as re­ported by a com­pany. Price to book value ra­tio com­pares the pre­vail­ing price to BV.

RoNW is the ra­tio of net profit to net worth, while RoCE is the ra­tio of PBDT to cap­i­tal em­ployed. Cap­i­tal em­ployed is net worth plus to­tal long-term bor­row­ings. High RoNW and high RoCE im­ply a busi­ness is cap­i­tal-ef­fi­cient.

Stan­dard de­vi­a­tion in the re­turns of a stock mea­sures the volatil­ity of the stock over its trend. Beta in­di­cates how much the scrip moves for a unit change in the in­dex. A neg­a­tive beta in­di­cates the share moves in a di­rec­tion op­po­site to the mar­ket and vice versa. The beta of the in­dex is 1. Beta is used in con­junc­tion with R Squared to draw in­fer­ences of volatil­ity.

Al­pha is the ex­cess re­turn of the stock above the risk-ad­justed mar­ket re­turn, given its level of risk mea­sured by beta. It is the re­turn given by a stock when the mar­ket in­dex has zero move­ment. A pos­i­tive al­pha in­di­cates the stock per­forms bet­ter than ex­pected, given its beta and vicev­ersa. A high al­pha value in­di­cates the stock has a strong trend in­de­pen­dent of the mar­ket’s moves.

R Squared is the square of the co­ef­fi­cient of cor­re­la­tion between mar­ket re­turns and stock re­turns. It is the per­cent­age by which the mar­ket in­flu­ences an in­di­vid­ual stock’s move­ment. R Squared could range from 0 to 1, where 1 would in­di­cate per­fect cor­re­la­tion between the mar­ket in­dex and the stock and 0 in­di­cates no cor­re­la­tion.

Open In­ter­est: OI is the num­ber of con­tracts open at end of day in the fu­tures and op­tions seg­ment. OI thus in­di­cates traders’ ex­pec­ta­tions. High OI is typ­i­cal when traders see a con­tin­u­ing trend.

Mar­ket Lots: The des­ig­nated value of a sin­gle F&O con­tract. This dif­fers from un­der­ly­ing to un­der­ly­ing. For ex­am­ple, it is 50 Nifty and 25 Nifty Ju­nior

Strike Price: The price at which an op­tion may be ex­er­cised. An op­tion is “in-the-money” if the mar­ket price ex­ceeds the SP (in case of a call op­tion) and the mar­ket price is be­low SP (in case of a put). Oth­er­wise it is “out-of-money”

Ex­piry date: The date on which a de­riv­a­tive ex­pires . An un­ex­er­cised op­tion be­comes val­ue­less while fu­tures con­tracts are com­pul­so­rily set­tled on ex­piry. On NSE, it is the last Thurs­day of ev­ery month.

Put/call ra­tio: The ra­tio of open in­ter­est in put op­tions & call op­tions.

Av­er­age of daily re­turns of a scrip in the last 30 trad­ing days.

for­mula= sqrt (((n* åy2)- (å y * å y))/(n*n)

for­mula ((n * å xy) - (å x* å y))/(n* å x2 - (å x * å x)),

for­mula (å y/n) - (Beta * (å x/n)) where n is 30 trad­ing days, y is å (sum) of daily price re­turns of a scrip for 30 trad­ing days, x is å (sum) of daily in­dex re­turns (BSE Sen­sex for BSE stocks and Nifty for NSE stocks)

When a sig­nif­i­cant change oc­curs in the day’s clos­ing value com­pared with the pre­vi­ous close, the close price is un­der­lined. A sig­nif­i­cant change means a 3 per cent rise or fall in scrips whose mar­ket val­ues are over 10 times paid-up value or 15 per cent for the rest of the shares.

The let­ters H or L ap­pended to prices in­di­cate a new high or low in the scrip; the let­ters XD af­ter the traded quotes in­di­cate that the scrip has gone ex-div­i­dend af­ter that date; XB de­notes ex-bonus, XR ex-rights; XO ex-in­di­ca­tor for other cor­po­rate ac­tions like AGM/EGM/ pref­er­ence shares/merg­ers and oth­ers . M de­notes vol­ume of shares in mil­lion, L in lakhs & K in ‘000’.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.