Financial Statement Analysis >> Financial statement source
Rishi Kashyap
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Financial statement source


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A close friend of mine (lets call him GK) manages a Portfolio Management Services (PMS) for many. I really respect his knowledge and his expertise in the Stock Market. I am continuously learning and keep making mistakes. Whenever in doubt, I discuss investment results with him.

On 18-Jan-2022, one such discussion made me realize that many investors are relying too much on their favourite website for Financial statements.
Financial Statement analysis source

Shares name mentioned in case studies are for educational purpose only and not to be taken as recommendations. Case study stocks may have been good investment at that moment of time which may have changed at the time of reading.

Please learn share market basics & how to value stocks before investing or consult a good Investment advisor.
Rishi kashyap is not a certified Financial advisor, please contact your Investment advisor if you do not know investing

Below is a transcript with GK which emphasis verifying the source of records

GK : At what time did you come to know that the company is not performing well??

ME : Yaar last 3 quarters were below my expectation .... I may enter again below 600 but for the time being didn't want my profit to erode ! Got my more than 20% return and will monitor it till saying last BYE in next 3 quarter !
In this share I think I just went lucky it went more than 1000, its should not have !

GK : June was marred by Covid 2nd wave and September (seasonally weak rainy) was inline .. last March was a bumper quarter..
Today you sold even without seeing the results .. sold by godly intuition  ..... The poor result actually came after you sold.. so you just sold on price and not poor performance (as claimed below your expectation) .... That's why I was curious on this specific query.

ME : Perhaps you are right. Only time will tell ..... In this Bull Run everyone is lucky ....
I am not saying THE ANUP is a bad company all I am saying its price sure will come down and I don't trade (short sell) so I got out as per my calculations.  But sure will monitor it closely. I rarely sell anything these days ....
I think you are monitoring 3rd part websites for results ...
The results came much earlier on BSE and NSE .... Track them there .


The sad part for me is I HAD TO SELL ..... I am still learning will do my thesis later where I went wrong with this share, I had huge expectations from this share and was moderately invested in it.

While their is nothing wrong in using 3rd party websites which facilitate better information filtering but one needs to understand how the Stock Market data flows.
  1. Listed companies are required to submit the board meetings and Financial results to the stock market exchange like NSE and BSE.
  2. These exchanges in turn display the results under Corporate announcements section of the share.
  3. These exchanges also sell this Corporate announcements data to Data vendors or 3rd party websites (called SUBSCRIBERS). Data is sold as Real time data (very expensive) OR End of day (EOD) data (expensive).
  4. Even in real time data there is a small delay in updating the SUBSCRIBERS or 3rd party websites. EOD data is broadcasted only after closing of market for that day, mostly after 1600 Indian Standard Time. Most 3rd party website including JAHAJEE Stock market report are EOD subscribers .
  5. 3rd party websites, in turn, may delay in displaying the data on their website and updating their screeners due to technical reasons like Page Cache, DB updates !
  6. Share market always responds quickly on the declared results.

CASE STUDY

Share of companyBUYINGSOLDRETURNON WRITING
The Anup Engineering LimitedPrice : 690
Date : 25-May-2021
Price : 1050
Date : 18-Jan-2022
52 %
CAGR : 90 %
Price : 616
Date : 14-Jun-2022

On 18-Jan-2022 ANUP declared its Results by afternoon and following movement of stock happened

NSE open price : 1195
NSE Results : 18-Jan-2022 12:39:55
NSE low :  982
NSE Close : 991.3

BSE open price : 1190.5
BSE Results : 18-Jan-2022 12:39:55
BSE low :  983.7
BSE Close : 990.7

Key Points of this section
  1. Results are declared first on either companies website or NSE and BSE and later on 3rd party websites
  2. Results are available as PDF on Exchange website under CORPORATE ANNOUNCEMENTS
  3. Stock prices may rise or fall sharply after declaring result
  4. Results dates are important data to monitor in your Stock Portfolio irrespective whether you are doing Fundamental analysis or technical analysis
  5. For Long term Investors, 1 quarter results should not matter. I generally take from 3  to 8 quarter results to take a decision ! You may have a different count and that is OK !

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Rishi Kashyap | | EDIT