{"id":774,"date":"2021-06-22T05:53:51","date_gmt":"2021-06-22T05:53:51","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=774"},"modified":"2021-06-22T05:53:53","modified_gmt":"2021-06-22T05:53:53","slug":"indian-stocks-who-are-test-match-performers-hold-similar-traits-check-them-out","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/indian-stocks-who-are-test-match-performers-hold-similar-traits-check-them-out\/","title":{"rendered":"Indian stocks who are \u2018Test match\u2019 performers hold similar traits! Check them out."},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Cricket has been a religion for the Indians. The posters of\ncricketers are treated like the poster of God by the young Indians who are\ndedicated to become a cricketer in their life. World cricket has seen dramatic\nchanges as cricket progressed in the hearts of cricket lovers. Irrespective of\nrules, cricket has changed its forms from time to time. 5-day Test cricket\nwhich was a true assessment of batsmen\u2019s patience and bowler\u2019s consistency was\nfollowed by one-day cricket that display aggressiveness and game-strategy of\nthe team. Later on, 20-overs cricket was introduced that displayed the hasty\nand quick decision-making qualities of team players. 20-overs cricket received\nmuch appreciation from the viewers due to high aggressiveness and \u2018Fatafat\nMatch Khatam\u2019 quality.<\/p>\n\n\n\n<p>However, hall of famers of the world cricket still favors \u2018Test Cricket\u2019 form as they believe that 5-day form of cricket is the real test of the players but the game was losing popularity due to unavailability of goose-bumps moments, thunder storm batting shots and unplayable yorkers. In order to regain \u2018Test Match\u2019 popularity, world cricket decided to organize a \u2018World Test Championship\u2019 to regain the interest and we have our finalists with us: Ind vs. NZ for first ever Test championship. People might not believe but Cricket and Equity Markets are similar in nature as gauging a stock that has the potential to perform in long term is a hard nut to crack. A true test of a potential stock is analyzed in long term.<\/p>\n\n\n\n<p>Must Read: <a href=\"https:\/\/www.invest19.com\/blog\/one-size-fits-all-doesnt-work-anymore-every-sector-has-different-parameter-to-scrutinize\/\">\u2018One size fits all\u2019 doesn\u2019t work anymore! Every sector has different parameter to scrutinize.<\/a><\/p>\n\n\n\n<p>Market participants have seen many stocks in Indian market\nthat have performed well and have shown their true colors over years. It is\nworth-mentioning that these stocks hold similar traits, remains in an upward\njourney and every correction is considered as a buying opportunity. Let\u2019s\ndiscuss four major traits that make a stock \u2018Test Cricket\u2019 performer. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Consistent\nGrowth Rate in Revenues:<\/strong> First and foremost feature a performing stock\ncarries with it is a consistent growth rate. No matter your growth rate is a\nlittle less or more than a standard CAGR, you should be posting growth\nconsistently. History is a universal proof that stocks with stagnancy in growth\nrate have never performed well. A consistent growth rate in stocks brings good\ncash flows that provide liquidity to the company to inculcate any expansion\nplans. It provides a bargaining power on your suppliers and provides you an\nedge over your rivals. It always helps firms to claim more payables outstanding\ndays.<\/li><li><strong>Low\nDebt-Equity Structure: <\/strong>Companies that have performed well continuously usually\nhave low or zero debt in their balance sheet. These companies enjoy higher\ncredit rating from credit rating agencies. These stocks are considered as defensives\nin times when indices get more volatile. They enjoy premium valuations provided\nby the market participants. Low-debt company\u2019s shareholders tend to control\nmajor decisions without any interference. Companies are not entitled for an\ninterest expenses that kept their operating expenses in control.<\/li><li><strong>High\nOperating Margins: <\/strong>Firms that deliver high operating margins tend to\nperform than its peers. High operating margins signifies higher managerial\nefficiency of the firm and employees are performing better. Companies that\nachieve higher operating margins display higher growth in their profitability\nand return ratios even with a small increase in revenues. Considering the\nincome statement of a firm, a company enjoys high operating margins if it has\ngot inputs at cheaper prices, employees are working with efficiency,\nunavailability of interest obligations or all.<\/li><li><strong>Strong\nCorporate Governance: <\/strong>Corporate Governance is a process to safeguard the\ninterest of the stakeholders in long term. Companies that have strong corporate\ngovernance provide transparency in their financial statements, managerial\ndecisions and ownership. The conduct their operations with ethics and values.\nNo whistleblower acts have been witnessed in these kinds of companies. The\npractice of clean corporate governance restricts government for any\ninterventions. Companies with good corporate governance build long-term\nrelationships with their customers and possess more capability of generating\nnew business.<\/li><\/ul>\n\n\n\n<p>Companies with the above-mentioned qualities are marathon runners. In most of the cases their correction results in a heavy buying from the market participants. These stocks remain on radar of long term players in the market. They are destined to generate wealth in the long term. There are some times when they feel the heat due to movement of any misleading\/wrong information but they bounce back strongly after the clouds of uncertainty faded.<\/p>\n\n\n\n<p><\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,288<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"774\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">12    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Cricket has been a religion for the Indians. The posters of cricketers are treated like the poster of God by the young Indians who are [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/indian-stocks-who-are-test-match-performers-hold-similar-traits-check-them-out\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":775,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,48,7,10],"tags":[],"class_list":["post-774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-economy","category-investment","category-featured"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=774"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/774\/revisions"}],"predecessor-version":[{"id":776,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/774\/revisions\/776"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/775"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}