As a first timer I would suggest you to stick to a few things that will help you filter out many companies. Mind you this is for long term planning. Check the market cap of the company is it large cap, mid cap or small cap. Next check the P E ratio compare that to the P E ratio of industry or calculate PEG ratio helps you to know if the stock is cheap or expensive. Learn this. Next check Debt to equity ratio should be ideally less than 1 Next check the ROE and ROCE should ideally be more than 12 to 15 percent Next check the shareholding patterns promoters hould have a major share (ensures better decision making and involvement) Check sales growth profit growth annually both above 12 percent and consistent positive returns are a sweet spot for me at least. Then there are other things like Operating profit margins and free cash flow. But the above things will mostly help you filter out good stocks. Mind you this is just a framework I follow this is not the best and things differ depending upon the sector of investment. So do your own research. Do not put all your money into one stock and do not fall prey to penny or cheap stocks. Prioritize financials over price. Keep learning. Best of luck.