‘Fundamental Rating’ is done for each company whose market capitalization is above Rs. 30 Crores. Fundamental Rating includes various financial data from the income statement, balance sheet, and Cash Flow statement items such as Sales, Profit, All Important Ratios, Cash Flows, Working Capital, Cash Conversion Cycle, etc. over the past quarters and years.
A Fundamental Rating of ‘99’ is the highest possible rating and means that the stock has outperformed 99 percent of all stocks. Fundamental factors considered in the rating include sales growth rate over the last three years, pre-tax profit margins, after-tax profit margins; return on equity (ROE), etc.