Why Classification is Needed
Over the decades, investors in India’s capital markets have lost lakhs of crores of their hard-earned money due to investments in unhealthy or defaulting companies.
To protect investors and improve transparency, there is an urgent need to classify listed companies based on their financial health, performance, and governance standards.
AI Financial Analysis by EagleEyeView.ai
According to our proprietary AI-driven financial analysis:
- ✅ Only about 25% of listed companies are financially healthy.
- 📈 Of these, nearly 75% are overvalued stocks, leaving just 10% as healthy and undervalued companies.
- ⚠️ Around 25% are defaulting companies.
- 📉 Another 25% are unhealthy companies with weak fundamentals.
- 🏚 About 10% are net-worth eroded companies, effectively sick units.
Basis of Classification
- Healthy Companies:
Firms with strong solvency, sound liquidity, and no signs of financial irregularities or fraudulent practices.
- Healthy & Undervalued Stocks:
Financially sound companies that are undervalued based on valuation ratios—offering sustainable growth potential and attractive long-term returns.
- Defaulting Companies:
Firms that divert short-term working capital loans to subsidiaries or unrelated assets, including stock market investments.
Such diversions disrupt operations and often push companies toward insolvency—a pattern India has witnessed repeatedly over the decades.
- Unhealthy Companies:
Companies that are not defaulting but exhibit weak financial performance—low profitability, poor liquidity, and inefficient use of capital.
- Net Worth Eroded Companies:
Firms with negative net worth that qualify as sick units, often requiring restructuring or liquidation.
Investor Safeguards
This classification system empowers investors to identify financially risky companies and make informed, data-backed decisions before investing.
At EagleEyeView.ai, we go one step further:
We’ve integrated undervalued stock analysis with live market data. Investors receive real-time WhatsApp alerts whenever the market value of their holdings changes — enabling instant tracking and protecting their capital.
Additional Services
EagleEyeView.ai also provides AI Financial Analysis of IPO Companies, helping investors avoid investing in fundamentally weak or overvalued IPOs (based on floor and cap price analysis).
All these services are available through simple subscription plans:
- 💼 Monthly Plan: ₹700
- 📊 Yearly Plan: ₹6,000
Visit & Explore
🌐 Website: eagleeyeview.ai
📱 App: IPO/List AI Financial Analysis
