Five-Chakra Rating System
Understanding the Five-Chakra Rating System
The Blanket Pulse Rating - Sudarshan Chakra System is Blanket Financial's proprietary stock rating system that helps you quickly assess the investment quality of stocks. Inspired by Vishnu's Sudarshan Chakra—a symbol of precision, clarity, and protection—this rating system provides a simple, intuitive way to evaluate stocks.
How It Works
The Blanket Pulse Rating is a forward-looking, algorithm-driven measure that evaluates:
- Current Stock Price relative to the company's historical performance
- Fair Value Estimate based on comprehensive financial analysis
- Price Discrepancy between current market price and intrinsic value
Rating Levels
| Rating | Visual | Label | Meaning |
|---|---|---|---|
| 1 Chakra | Weak | Stock appears overvalued or has weak fundamentals | |
| 2 Chakras | Fair | Stock has average fundamentals, may be fairly valued | |
| 3 Chakras | Good | Stock has balanced fundamentals and reasonable valuation | |
| 4 Chakras | Strong | Stock is a solid performer, trading below fair value | |
| 5 Chakras | Excellent | Top-tier investment opportunity, significantly undervalued |
How to Use the Rating
For Stock Selection
- Start with Higher Ratings (4-5 Chakras): Focus on stocks with 4 or 5 Chakras as they represent better investment opportunities
- Use Ratings as a Filter: Combine with other factors like sector, risk tolerance, and investment goals
- Don't Rely Solely on Ratings: Use ratings as one tool in a comprehensive investment analysis
Key Principle
The core principle is simple:
- Stocks trading below fair value = Higher rating (better opportunity)
- Stocks trading above fair value = Lower rating (higher risk)
Remember
Ratings are dynamic and change as stock prices move, company fundamentals change, and fair value estimates are updated. Always conduct your own research and consider your risk tolerance before making investment decisions.