EQUITY RESEARCH

Recommendation

1. Summary of the pitch

Include points like:
A. Business model
B. Track record
C. Valuation
D. Future growth prospects
E. Fundamentally strong

1. The price recommendation

Include:
A. Upside potential according
to your valuation
B. Reference Date

Catchy headline on the slide

Industry Overview
1

2
Important macro
factors affecting the
industry
Geography wise
Market size / growth
potential

3
India contribution to
global share and
market size
Main players in the
industry

5
Value Chain Analysis
Focus on the part
where this company
fits in

Important
legal/regulatory/polit
ical impacts
Act governing the
industry

6
Recent trends and
implications in the
industry
Any fundamental
changes in the
market/industry

Growth Drivers
Risks in the Industry

Company Overview
Basic Stock Data

Analysis of Conference call

Shareholding Pattern
Any prior legal / regulatory issues

Revenue breakup geography wise / product wise

Acceptability of the brand amongst customers

Stock Price Movement (With comparison to benchmark)

Credit Ratings
Business Model

Company Specific Recent Events

Product Portfolio / Services Offered

Corporate Governance

Companys USP

Financial Analysis

Top Line &

Bottom Line
Growth Trends:
Revenue &
EBITDA

Product Wise,
Country Wise
Revenue &
Profit Growth

Cost Structure
Trend: Power&
Manufacturing
Cost declining

Shareholder
Ratios: EPS &
DPS, ROE &
ROCE

Ratios
depending on
the nature of
Business

Capital
Intensive: Fixed
Asset Turnover,
Working Capital
Turnover, Cash
Conversion
Cycle,
R&D,Debt
Equity Ratio

Financial
Snapshot:
Profitability,
Liquidity,
Solvency,
Activity &
Shareholder
Ratios

Valuation

DCF
Free Cash flows

Growth Profile &

Growth Rates

Terminal Value
WACC: Cost of Equity
using CAPM, Cost of
Debt, Beta

Fair value of company

Relative Valuation
Price/Earnings

EV/EBITDA

Price/Sales

EV/Sales

Price/FCF

Risks and Competition

Risks
Market Risk: Growth in new markets
Foreign Currency Risk: Export oriented business
Operational : Supply of Power, Availability of Raw Materials, Cost of raw materials

Regulatory Risk: Agreements with foreign countries

Expansion/Technology Risk

Political Risk

Competition
Parameters: Financial & Fin Ratios
Business Specifics / Competitive Advantage
Spider Chart Snapshot