Knowledge management concept security analysis

The process of analyzing the interactive security and the market as a whole estimating the risk and returns expected from each of the investment which a visual to identifying undervalued securities buying and overvalued securities for selling is both an area  & science this is what is called security analysis.

Industrial analysis:

          The industry analysis should task accounts the following factors among has influencing the performance of company where shares are to be and

●      Product line

●      Raw material and input

●      Capacity install and utilized

●      Industry characteristics

●      Demand and market

●      Government Policy with regard t industry

●      Labor and other industrial problem

●      Management

●      Future prospects

Product line:

          The position of the industry in the life cycle of its growth “ initial stages high growth stages, maturity stages one to be denoted “ it is also necessary to know the industries with a high growth potential like computers, electronics, chemicals demands, FMCG’s.

 Raw material and input:

          Under this head you have too look into industries depending on imports of scarce raw material, competition from other company and berries to entry of a new company production from foreign competition import and export  and restriction etc....

Capacity installed and utilized:

          The demand for industrial product in the economy estimated by the planning commission and govt. The units are give licensed capacity  on the basis of estimated. If the demand is raising to respected and market is good for the products.

Industry characteristics:

          Whether the industry is cycling fluctuation or stable has to be look into first.

          If the demand is seasonal as the case of fertilizers, pesticides.

          They problems they mark the grade prospects. If it is consumer product food products or former and the demand all over India freight

Demand and market:

          The demand for the product should expanding and its price should not control by the government if the industries to have good prospects of profits if the demand is income elasticity price elastic the supplier could able to sell the goods at growing  rate and the prospects of growth and good. It is also important  the prices of raw material and other input cost like freight, elasticity etc...., should not be controlled by the govt.

Government policy with regard to industry:

          The govt. Policy is enhanced in the industrial policies, regulation, and subsequent announcements from time to time by the government the policy can also be seen strategy laid down in the systems plan and importance given to the ministry by time planning commission and the osculated