Look at the quarterly results to make money from stock market
1) 1st April to 30th June (1st Quarter)
2) 1st July to 30th September (2nd Quarter)
3) 1st October to 31st December (3rd Quarter)
4) 1st January to 31st March (next year) (4th Quarter)
In the Indian stock market majority of the stock listed companies declare their quarterly results within the next 2-3 months (usually 2 months) of the end of each quarter.
For example, IT companies such as TCS and Infosys declare their quarterly results within the 1st month of the end of each quarter. So, if the company has to declare the result of 1st quarter (1 April to 30th June) they will usually do it in the month of July itself while many other stock listed companies may declare it in the month of August or September (very few companies only in September).
However, 95% of the companies’ results are out by the end of the August month for the 1st quarter and similarly for other quarters too.
In a way, each stock listed company in India declare their quarterly results 4 times a year as there are 4 quarters in a year. The exact date when the result will be announced is already fixed (companies release ‘press release’ to let investors know about that date).
But the best way is to look at this corporate announcement page on moneycontrol.com just after the end of each quarter and there you will find all the information about results declaration date of each stock listed company in India.
It’s quite natural that we all want to buy a stock whose price will go higher in the future so that we can sell at the higher price and make some money.
But do you know unless there is a growth in sales and the net profit of the company on the YOY basis (or at least QOQ basis) it will not be possible that you will see a rise in the price of the stock? YOY here means “year on year” and QOQ means “quarter on quarter”. That is the reason looking at the quarterly results declared by the companies is very important. You can immediately look at the results (once out) on sites like bseindia.com where it is first published in a PDF file for each company. Just check under “corporate announcements” section on the home page.
The exact time of declaration of the result is not mentioned by the company but as I mentioned earlier the date (of the results declaration) is already known to all the investors and you can also know that by looking at the moneycontrol.com link I mentioned above.
So, you need to be patient and keep looking at the BSE website in order to see the results as quickly as possible (once out) before other investors do, so that you can make an immediate decision whether to buy the stock or not.
Now let’s see how to interpret the result declared by the company.
As said earlier there must be some growth in sales and net profit YOY for the stock price to appreciate. The stock price may even fall if there is negative growth. The stock price may also consolidate in a range if the growth is neither positive nor negative and the sales and profit figures are almost the same as per the last year. If there is sales growth YOY but not a growth in EPS (earnings per share) then also the stock price may not appreciate. Also, the extent of the stock price rise or fall will entirely depend on the extent of the growth on YOY basis.
But this is not always the case that the stock price will rise only after the declaration of the quarterly results. The stock market is, most of the time, forward thinking. The insiders in the company already know about their growth.
Though the insiders are not allowed to buy or sell their shares during the closed period still they can manipulate stock price via third parties (like their relatives or friends).
That is the reason, for some of the smaller companies, you may often see that the stock price had already appreciated or depreciated even before the quarterly results were declared. New investors, who are not aware of this, tend to take action after the result is out.
But they lose money instead of making the money (if they are short-term traders) because the insiders who have already bought or sold (before the result was out) book their profits as they already bought (or short sell) at the lower levels as they were already aware of what likely the result was going to be from their insider sources.
But this is not the case with every company as their management is honest and they never try to manipulate stock prices with the help of third parties.
Since there are so many stock-listed companies in India (around 4000-4500) opportunities never end and it is always possible to make money by buying stocks whose price has still not appreciated (some stocks are still undervalued) even though the companies produced good sales and net profit growth on YOY basis.
Just make use of the stock chart and check whether the stock price had already appreciated or not before the result was out.
If the stock price had already appreciated (before the quarterly result was out) you can always assume the result is going to be good. Most probably you will find the stock price going down again (once the result is out) as the insiders will sell and book their profits. When the price had fallen quite a bit this is the time you can buy for long term.
But you should ensure the stock is worth buying at the current price by looking at its price to earnings (PE) ratio. PE is a great way to check whether the stock is still worth buying or not as it gives us an indication of how undervalued or overvalued the stock is as per the latest price of the stock.
We always update immediately the quarterly result, on our site, of each stock listed company in India once it is out. Just make use of the search box above (on this site) to look for the latest quarterly sales and EPS growth of any stock listed company you are interested in and that will really help you make a good investment decision as we have also mentioned the latest PE.
You can also look at the quarterly results PDF file on bseindia.com for each stock listed company in India as mentioned earlier. In this PDF file, the company itself will provide you with the recent quarter’s sales and EPS and they also provide the sales figure and EPS of the company during the same quarter the last year. This will help you to figure out the sales and EPS growth on YOY basis.
Also, the PDF file will tell you about the last quarter’s EPS and sales figures, along with the most recent quarter, so that you can also check the sales and profit growth on QOQ basis as well. So this is how it all goes. If there is positive sales and EPS growth both on QOQ and YOY basis then the company’s result is considered good and so it will be worth investing.
The only thing you have to do is to work hard and check the quarterly result of each and every stock listed company in India and I am 100% sure you will find a lot of opportunities to invest in.
You should also understand the concept of return on equity in order to make a better investment decision. If the return on equity is going down every year then this might not be a good stock to invest in.