Guide To Filter The Most Profitable Unlisted Companies In India

Buying listed and unlisted shares is a process to gain profits and create an investment portfolio in the stock market. 

Once you have decided to start investing, it is essential to learn about the attributes of the market and ways to reduce the potential risk. Most retail investors buy pre-IPO shares only after a proper risk assessment to ensure high returns. At the same time, some individuals start investing as a hobby, which could result in low returns or even loss of capital. Investors must understand that blindly buying and holding on to the shares would not result in suitable returns. Successful returns require risk evaluation, research, market understanding, etc. However, you can easily understand the market with proper advice from unlisted shares brokers.

An investor must follow a complete process before picking their first unlisted share. Here is the beginner’s guide. 

How To Pick And Play With The Best Performing Stocks?

Picking the right pre-IPO stock is the only way to maximise your returns. Though there is no single approach available for investing in stocks, investors must understand the risk they are willing to take and the capital they can invest. Furthermore, you need to follow this process while investing in the stock market – 

  • Do Your Research

Proper research is the key element before investing in a company. Because unlisted shares are not registered on SEBI (Securities and Exchange Board of India), investors are provided with minimum or no information. Thus, you must properly analyse the business’s perspective, revenue generation, and working.    

  • Conduct Analysis

Conducting analysis includes checking the main competitors and understanding the risks of the market. Investors need to determine a fundamental, technical, and quantitative analysis of the equity value to gain better profit in the near future.

  • Avoid Emotions

Inventors must overlook any emotional factor while investing in unlisted shares. These factors include hope, feeling and thoughts regarding the company. Thus inventors own doomed stocks even if the company is going through a loss. 

  • Spread Risk

Investors must consider the risk factors like market volatility, recession etc when planning to buy unlisted shares, as there is no guarantee of profit generation in the stock market. 

How To Integrate Fundamental Analysis To Choose Stocks

Fundamental analysis is an approach that provides theoretical knowledge about the industry and company. Investors make major long-term assumptions through fundamental analysis and determine the value of equity. 

  • Qualitative Factors

Qualitative fundamental analysis includes factors that do not associate with numbers. These factors focus on the company’s reputation, management process, owning new technologies, competitive advantages, etc. 

  • Company News

Factors like organising different events, sharing business news etc. attract more inventors to the company. 

  • Personnel Changes

If a company goes through personal changes, like hiring a reputed CEO, it develops a sense of trust for the inventors. 

  • Product offering  

Companies that are capable of building a monopoly with their products attract more investors. For example, ‘Jio’ is a popular stock market share, offering a great return to investors. 

  • Management team 

Hiring a well-known managerial team works beneficially for the company’s reputation as it attracts more inventors and increases the face value of unlisted shares. 

  • Financial Events

Financial events like conducting bids, merging with other companies etc., attract investors’ interest and affect the market. 

  • Quantitative Factors

Quantitative fundamental analysis works on information completely based on numbers and amounts. Investors use these factors for risk analysis and to measure the price of pre-IPO stocks. 

  • Earnings Releases

Earning release is an official statement that shares details of a company’s earnings, and inventors refer to these before buying/selling stocks.  

  • Balance Sheets

A company with organised and regulated balance sheets attracts more investors. 

  • Dividends

Investors earn stock dividends based on the shares they hold in the company.   

  • Ratios

Ratios that are used to pick the unlisted shares are: 

  • Price To Earning
  • Debt Equity Ratio
  • Return To Equity
  • Return To Equity peg ratio
  • Past and future growth trends. 

Tips To Pick Stocks Using Technical Analysis

Technical analysis practically takes care of every other aspect while buying or selling an unlisted share, which includes learning about the existing market condition, trading activity, and equity volatility. Technical aspects that are required for analysing the share market are –  

  • Moving Average
  • Exponential Moving Average
  • Stochastic Oscillator
  • Moving Average Convergence Divergence

Fundamental Vs. Technical Analysis: Which Is Better?

Fundamental and Technical analysis are two ways to help investors make better decisions. It involves taking questions like whether to buy unlisted shares or not. Talking about which one is the better option, we suggest – both methods are equally important for making the right decision. 
However, getting professional help from unlisted shares brokers is still the best way to determine profit generation. Stockify provides alternative investment options for pre-IPO; you can also book a consultation with the experts immediately!

Table of Contents

Reduce the stock market volatility by following the guide to filter profitable unlisted shares.


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Piyush Jhunjhunwala
Piyush Jhunjhunwala
CA, CPA, Ex. PepsiCo, Reckitt, Coty
CEO & Founder
Dubai, UAE.
Rahul Khatuwala
Rahul Khatuwala
Ex. Wipro & Finaco Founder
Bangalore, India.