How, to select a stock for Investment or u can say How to check fundamentals of a stock First Go to ***** In the search box type the name of the stock which u r interested in investing :- Now select Financial, see its results Annual as well as quarterly Firstly see Revenue, if its increasing every quarter as well as annual or its stable but not negative then its a good stock Then see its Net Profit , if its increasing every quarter as well as annually then its a good stock Then see its Debt as well as Reserve Capital :- Suppose the Debt of a company was 100 crores in 2014, 90 crores in 2015, 70 crores in 2016, 50 crores in 2017 And its Reserve Capital in 2013 was 210 crores in 2014, 218 crores in 2015, 226 crores in 2016, 240 crores in 2017 Here u r seeing the Debts of this company is decreasing every financial year and the Reserve Capital is increasing every financial year. So, its a safe company to invest in. If a Company has zero debt but has good Reserve capital then its a Golden stock to invest Now see Shareholding Pattern of that stock. Just see the percentage of stock promoters r holding & public is holding. For example :- Suppose in 2014 Promoter Holding 66% Public or Institutions holding rest 34%, 2015 Prom Holding 70% and Pblic and inst=30%, In 2016, Promoters holding 72% and public and inst=28%, and in 2017 Promoters holding is 75% and public and inst=25%. So its a very less risky stock bcs Promoters holding has increased every year and not decreased so they hv faith in their company and If FIIs holding also increases every quarter or annually then additional good point for stock Now see its P/E ratio and also check its Industry P/E ratio Suppose its a Pharma stock trading at 200 rupees and its P?E ratio is just 9 and Its Industry P/E ratio is 27. What does it means ? It means that the stock has the potential to triple from here bcs its Industry P/E ratio is thrice its own P/E ratio