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Risks Identified   
Actions Taken     
Risks Accepted  

Portfolio Strength

Portfolio Valuation

Downside Potential

Your portfolio has a downside potential of ₹ -92 K (9.6% of Portfolio)

2 additional stocks forming 6.4 % of portfolio have Business Risk.
Max Financial, ICICI Prudential, Max India, Kennametal India, Inox Wind, Schneider Ele. Infra, Linde India, Shoppers Stop, NCC, Rain Industries, Reliance Comm, Future Lifestyle, EIH, Prestige Estate Proj, GE T&D India, Reliance Power, Indian Hotel, Honeywell Automation and Aditya Birla Fashion stocks also carries Business Risk. They have already been highlighted under earlier risks.

Larsen & Toubro

CMP: 1172 | ₹49 K (5.2% of Portfolio)


BRBusiness Risk
VRValuation Risk
Sell 42 out of 42 shares

Tata Steel

CMP: 656 | ₹12 K (1.2% of Portfolio)


BRBusiness Risk
VRValuation Risk

FAQ's : Business Risk

Companies with poor fundamentals and weak business models are unable to deliver consistent and sustainable profitable growth. Investing in such stocks exposes your portfolio to business risk. The company's poor performance could be the result of low or no sales growth, poor margins, inefficient management, inefficient capital allocation, etc.In the short term, it is possible that even substandard business gives temporary returns. But in the long term, a company's performance is reflected in its stock returns. As rightly said by Benjamin Graham, the father of Value Investing, “In the short term the market behaves like a voting machine, but in the long term it acts like a weighing machine.“

Invest in a business that behaves like a compounding machine; companies that perform consistently and have sustainable earning power. Such performance will translate into higher market values and earn you compounded returns.

Even large or prominent companies are not immune to business risk. Investing in companies with business risk means you run the risk of loss of value from falling prices. The returns generated by buying healthy companies can be wiped out because of such bad investments.

Your Action

Others Actions

1. Max Financial SELL 50
2. Larsen & Toubro SELL 42