Evaluating Stocks from Telecommunication Sectors  Using Fundamental Criteria

Antonio Vincent; Aparna Kuriakose; Athul Krishna K B; Ancy Antony

doi:10.34293/sijash.v12iS1-June.9109

Antonio Vincent Student, Department of Finance & Taxation, Bharata Mata College, Thrikkakara, Edappally, Kochi, Kerala
Aparna Kuriakose Student, Department of Finance & Taxation, Bharata Mata College, Thrikkakara, Edappally, Kochi, Kerala
Athul Krishna K B Student, Department of Finance & Taxation, Bharata Mata College, Thrikkakara, Edappally, Kochi, Kerala
Ancy Antony Assistant Professor, Department of Commerce Finance & Taxation, Bharata Mata College, Thrikkakara, Edappally, Kochi, Kerala

DOI: https://doi.org/10.34293/sijash.v12iS1-June.9109

Keywords: Stock Evaluation, Fundamental Analysis, Financial Ratios, Net Profit Ratio, Debt-Equity Ratio, Earnings Per Share (EPS), Return On Investment (ROI), Intrinsic Value, Undervalued Stocks, Overvalued Stocks, Automobile Industry, Telecommunication Industry, Textile Industry, Financial Performance, Stock Valuation

Abstract

Analysis of telecommunication stocks based on fundamental factors is a key process in assessing financial performance and measuring intrinsic value. The research compares the three Telecommunication Industry companies (Vodafone Idea, Bharti Airtel and TATA Communication) over five years from 2019 to 2023. Four main financial ratios, Net Profit Ratio, Debt-Equity Ratio, Earnings Per Share (EPS), and Return on Investment (ROI), were derived for all three companies to judge their overall financial performance. The intrinsic worth of each of the company’s stock was then calculated and compared to its market price to analyze whether the stocks are undervalued or overvalued. The study is very informative about the financial condition and stock valuation, which helps investors make the right decisions.