Evaluate the company's financials, performance and growth potential in the next 5-10 years or more before buying its stocks.
Check the company's price-to-earnings ratio, price-to-book ratio, and the broader industry.
Compare the company's earnings and performance with its peers.
Check the company's debt management, especially in a high-interest rate scenario, and the borrowing rate versus the market rate.
This reflects the company's health. Check if it reinvests for growth without external borrowings, a sign of long-term growth.
Consistency in dividend payouts indicates cash flow generation.
Check the promoter's involvement in the business and the institutional investors' interest in the business and whether they are for the long-term.
It shows how the company is performing against its peers.