Stock Investment Assessment App 📈

An AI-powered Streamlit application that helps investors evaluate stock investment risks and opportunities based on real-time financial data and comprehensive risk analysis.

Features

• Real-time Data Analysis: Fetches live financial data using Yahoo Finance API
• Multi-factor Risk Assessment: Analyzes multiple risk factors including:
  • Debt-to-Equity ratio
  • Beta (volatility)
  • Earnings volatility
  • Sector risk
  • Macro risk factors
• Sector-based Analysis: Pre-categorized companies across 8 major sectors
• Investment Recommendations: Clear BUY/HOLD/SELL recommendations
• Confidence Scoring: Assessment reliability based on data quality

Supported Sectors & Companies

The app covers 8 major sectors with prominent Indian companies:

• Technology (Beta: 1.1): TCS, Infosys, Wipro, HCL Tech, etc.
• Financial Services (Beta: 1.6): HDFC Bank, ICICI Bank, Bajaj Finance, etc.
• FMCG (Beta: 0.8): ITC, Nestle India, Britannia, Dabur, etc.
• Pharma (Beta: 1.05): Sun Pharma, Dr. Reddy's, Cipla, Lupin, etc.
• Automotive (Beta: 1.8): Maruti Suzuki, Tata Motors, Bajaj Auto, etc.
• Energy (Beta: 1.4): Reliance, NTPC, BPCL, IOC, etc.
• Metal (Beta: 2.2): Tata Steel, JSW Steel, Vedanta, etc.
• Consumer Goods (Beta: 0.7): Asian Paints, Titan, Havells, etc.

Installation

Prerequisites

• Python 3.7+
• pip package manager

Setup

1. Clone the repository

2. Install required packages

3. Run the application

The app will open in your default web browser at http://localhost:8501

How to Use

1. Select Investment Parameters

   • Choose a sector from the dropdown
   • Select a company within that sector
   • Enter your investment amount (for reference)

2. Perform Assessment

   • Click "Assess Investment" button
   • The app fetches real-time financial data
   • Analysis is performed using the investment model

3. Review Results

   • View risk score, risk level, and confidence percentage
   • Get clear investment recommendations
   • Understand key financial metrics

Risk Assessment Model

The app uses a sophisticated weighted scoring system:

Risk Factors & Weights

• Debt-to-Equity Ratio (25%): Financial leverage assessment
• Beta (25%): Market volatility relative to benchmark
• Earnings Volatility (20%): Historical earnings consistency
• Sector Risk (15%): Industry-specific risk factors
• Macro Risk (15%): Overall market conditions

Risk Categorization

• Low Risk (< 0.33): Generally safe investments
• Medium Risk (0.33 - 0.66): Moderate risk with balanced potential
• High Risk (> 0.66): Higher volatility but potential for greater returns

Technical Architecture

Core Components

1. StockInvestmentModel Class

   • Handles risk calculation and normalization
   • Provides investment assessments and recommendations
   • Calculates confidence scores

2. Data Fetching Functions

   • calculate_earnings_volatility(): Quarterly earnings analysis
   • calculate_debt_to_equity(): Balance sheet analysis
   • Real-time data via yfinance API

3. Streamlit Interface

   • Interactive sector/company selection
   • Real-time assessment results
   • Visual metrics and recommendations

Data Sources

• Yahoo Finance API: Real-time financial data
• Predefined Sector Data: Beta values and company mappings
• Financial Statements: Balance sheets and income statements

Example Output

Risk Score: 0.45

Risk Level: Medium

Confidence Level: 87%

Recommended Action: HOLD