The objective of this goal is to acquire skills for handling quarterly earnings reports when maintaining your watchlist stocks by making effective additions and deletions or making necessary adjustments based on financial data and market direction.

Why Update Your Watchlist Post-Earnings?
Earnings reports reveal:
1. The revenue/profit development demonstrates both speeding-up and deceleration patterns.
2. Risks & Opportunities: Margin pressures, debt reduction, or new projects.
3. Guidance adjustments from management tend to reveal upcoming business prospects.

Example:
The adjusted FY24 growth expectations in Infosys Q1 FY24 led the company to lose its place on growth-focused watchlists.
The JLR division of Tata Motors delivered profit during Q4 FY23 which led wealth investors to take interest.

Begin by analyzing the financial data through your predefined evaluation standards.
Verify the current results against both fundamental and technical specifications from your watchlists.

For Value Investors:
– Check: Did P/E improve? Are margins stable?
ITC demonstrated 12% revenue expansion and maintained a 24% return on equity level which led to staying on the watchlist.
The rising debt level at Vodafone Idea warrants dropping the stock from your portfolio despite its attractive low P/E ratio.

For Growth Investors:
Verify if revenue expansion shows increasing momentum.
The renewable energy division of Tata Power recorded 25% annual revenue growth which establishes it as a keep rather than a remove.
The watchlist loss occurred when Zomato’s financial losses expanded.

For Technical Traders:
Earnings should trigger either positive or negative action regarding price movements.
After earnings announcement Reliance jumped 5% in opening trading thus traders should investigate potential resistance breakthrough opportunities.

Step 2: Analyze Key Metrics
1. Revenue Growth:
– Action: Retain stocks with consistent growth (e.g., Asian Paints: 8% YoY).
The company’s stagnant revenue performance following the quarter of high inflation (Britannia demonstrated only a 3% growth) would be an indication to remove the stock from consideration.

2. Profit Margins:
The margin improvement process at Maruti Suzuki continues as the company raises its operating margins by 2 percent.
Entities suffering from declining margins because of weak cost management should be eliminated from investment portfolios (BPCL shows an example of reduced profitability).

3. Debt & Cash Flow:
JSW Steel decreased its net debt by ₹5,000 Crores while other businesses (e.g. JSW Steel) implement this action.
The debt-to-equity ratio of Adani Green Energy has increased to 10x which stands as a negative factor.

4. Management Guidance:
The analysis focuses on organizations that improve their guidance prediction through positive results (L&T demonstrates a 20% growth in order book).
The performance of Infosys has been negatively affected by their lowered forecasts for FY24 growth.

Step 3: Compare with Sector Peers

It’s clear that Hindustan Unilever and Nestlé India are performing well, with stable and improved margins respectively, warranting positive actions. In contrast, Dabur India’s performance suggests that it should be removed from consideration due to its poor revenue growth and declining operating margin.

Step 4: Update Triggers & Alerts
Earnings-driven price changes should serve as crucial factors to modify both entry and exit triggers.
The share price of Tata Motors increased following its earnings results triggering a rise in your buy trigger from ₹600 to ₹620.
The margin pressure experienced by HDFC Bank led to decreased stock value therefore triggering a buy alert at the 200-day Moving Average level of ₹1,450

Tasks for you👍
1. Analyze 3 Earnings Reports:
– Pick stocks from your watchlist (e.g., Reliance, TCS, ITC).
The website Screener.in enables users to examine pre-earnings data and post-earnings data metrics against each other.

2. Update Your Watchlist:
The list requires two new picks including Tata Power due to renewable energy growth potential as well as SBI Cards following its correction phase.
Zomato (rising losses) and Vodafone Idea (debt risks) should be removed from investment consideration.
Asian Paints should become a buy opportunity when its P/E ratio reaches below 50 (after earnings P/E stands at 55).

3. Set Post-Earnings Alerts:
Check Moneycontrol for price movement analysis of stocks approaching their support points (observe Infosys at ₹1,300).

Key Takeaways
1. Clear your portfolio from stocks that do not match your criteria regardless of emotional reactions towards them.
2. The health of your stocks depends on trend analysis since a single negative quarter remains no major issue unless multiple consecutive poor performances occur.
3. Executive guidance toward optimism or pessimism generally helps identify performance trends ahead of time.

Common Mistakes to Avoid
HDFC Bank stockholders faced losses after they dropped their shares when margins decreased by 2% although the bank maintained positive loan growth.
The decline in BPCL margins was caused by sector-wide industry challenges which affected all refining businesses.
The volatility observed in Adani Ports stocks following the earnings announcement should not be a reason to buy them.

FAQs for Investors
– “How often should I update my watchlist?”
Quarterly (post-earnings) + ad hoc for major news (e.g., mergers, regulatory changes).
– “What if a stock I removed starts rising?”
Re-evaluate if fundamentals improve (e.g., Yes Bank post-restructuring).
– “Best tool to track earnings dates?”
Corporate Calendar on BSE India.(https://www.bseindia.com/corporates/corporate_act.aspx).