How to analyse the management of the company ?

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Company Analysis! Qualitative Analysis

Why do retail investors always fail to pick the quality stock?  Why does it become so necessary to look at the management as a whole before any kind of an investment?

"New Car - Bad Driver - Definitely there will be an accident.
Old Car - Good Driver - Definitely you will reach the destination."

Fundamental Analysis of any company starts with 'quality analysis' followed by 'quantity analysis' Quality analysis of any company is more subjective however quantity analysis is more objective and numeric.

Everyone says see the management but nobody talks about how to see the management. We will  analyse the management as a whole not in a very concentrated way. Which means we will divide the management into many small parts and then will use the method of 'sum of the part' . So let us discuss how to watch management.

There are so many parameters which an investor can look before an investment. But there are few key parameters which he will be required for every company if he goes for equity investment.
1. Shareholding patterns.
2. Company research and development.
3. Patents Copyright.
4. Face value.
5. Volume
6. Awards Recognition.
7. Dividend payout ratio.
8. Related party transactions.
9. Mission and Vision
10. Joint venture, Associates and subsidiaries.
11. Technology Absorption.
12. Human Resource Development.
13. Product Portfolio.
14. Pending taxes and litigation.
15. Corporate Governance.
16. CSR.

What are these parameters and how to use them to analyse a company before reaching any conclusion is a little bit tricky so we will be required to build a financial model. Following video will be helpful for you to build a financial model for management analysis. Which is most important before an equity investment.

 
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