We have adopted a ‘Rating’  (BUY/HOLD/SELL) system for stocks recommended in our equity research strategies. 

Any subscriber coming onboard will see the rating given by Research analyst against a stock on the dashboard.

(1) Stock on BUY Rating

It implies that investors can buy the stock given the valuation comfort and technical ranges. A stock is initiated in the coverage with Initiating Price (IP). It is likely that a subscriber coming on board will not get this exact IP. Stock may be lower or higher than the IP. Hence, BUY rating provides an indicator if buy should be initiated or not.

A BUY rated stock can be changed into HOLD or SELL rating as deemed suitable and FC Subscribers will be intimated of the change with investment rationale report.

(2) Stock on HOLD Rating

It implies that investors who already have a position in a stock should not increase weight to the stock. Investors who do NOT have a position should not buy the stock as a fresh allocation. This may be due to excessive rise in valuations or an event where we anticipate time or price or both types of correction. Given the opportunity cost, we would like to delay the buying decision for both existing/new investors.

A HOLD rated stock can be changed into BUY or SELL rating as deemed suitable and FC Subscribers will be intimated of the change with investment rationale report.

(3)  Stock on SELL rating 

It implies that investors who have existing positions in a stock should exit. The coverage will be closed.

A SELL rated stock will NOT be changed into BUY or HOLD rating and FC Subscribers will be intimated of the change with investment rationale report.

Stock Rating should be used in conjugation with the Percentile system. Any subscriber to FC strategies will be able to see both Rating and Percentile against a recommended stock.

In rare situations, we will use the ‘Rating under review’ category where we need more time to make a decision on the rating. This is likely to happen in an emergency type of corporate situation.