Equity Research Interview

Please note: Answers are based on old information and data. While preparing please refer to current data and current market condition.

Tell me the difference between cyclical and growth industries and how they are affected by external factors?

Cyclical industries are industries that experience regular ups and downs in business activity, often in line with the
overall business cycle. Examples of cyclical industries include automotive, construction, and retail. These industries
tend to do well when the economy is growing but suffer during recessions.

Growth industries, on the other hand, are industries that are experiencing consistent and sustained growth.
Examples of growth industries include technology, healthcare, and renewable energy. These industries tend to be less
affected by the overall business cycle and continue to grow even during recessions.

External factors that can affect cyclical and growth industries include changes in government policies, technological
advancements, shifts in consumer preferences, and economic conditions such as interest rates and inflation. For
example, changes in tax policies or regulations can affect the construction and automotive industries, while
advancements in technology can disrupt or benefit the growth of technology companies.

Where do you see the market in 5-10 years and why do you believe so?

It is difficult to predict with certainty what the stock market will look like in 5-10 years, however, based on current
demographic trends, government finances, and GDP growth projections, it is likely that the S&P 500 will remain
relatively stable and may even experience modest growth over this time period. Factors such as inflation, consumer
spending, and the Federal Reserve's quantitative easing policies will also play a role in determining the market's
performance. Additionally, the development of new technologies and the emergence of innovative new companies
could also have a positive impact on the market in the long-term.

Tell me about what is the P/E ratio and how would you use it to compare companies?

The P/E ratio, or price-to-earnings ratio, is a financial ratio that compares a company's stock price to its earnings per
share. It is calculated by dividing a company's current stock price by its earnings per share (EPS). The P/E ratio is often
used to measure a company's valuation and to compare the valuations of different companies.

A high P/E ratio may indicate that a company's stock is overvalued, while a low P/E ratio may indicate that a
company's stock is undervalued. However, it is important to note that a high P/E ratio for one company does not
necessarily mean that the company is overvalued, as different industries and sectors have different average P/E
ratios.

When comparing companies, it is important to compare P/E ratios within the same industry or sector, as different
industries and sectors have different average P/E ratios. For example, technology companies tend to have higher P/E
ratios than utilities companies.

It's also important to consider the company's growth prospects, as companies with higher growth prospects tend to
have higher P/E ratios. A company with a high P/E ratio but high growth prospects may be more attractive than a
company with a lower P/E ratio but lower growth prospects.

Additionally, other factors such as debt levels, profitability, and cash flow should also be considered when evaluating
a company. The P/E ratio alone should not be the only metric used to compare companies, it is one of the many
metrics used to evaluate a company's performance and its future growth.

Tell me about some top Indexes in NSE and BSE?

The NIFTY 50 Index is one of the most popular and widely followed indices in the Indian stock market. It consists of
the 50 largest and most liquid stocks listed on the National Stock Exchange (NSE). Other popular indices in the NSE
include the Nifty Auto, Bank, Financial Services, FMCG, IT, Media, Pharma, Private Bank, and PSU indices. On the
Bombay Stock Exchange (BSE), popular indices include the SENSEX, BSE MIDCAP, BSE SMALLCAP, BSE 100, BSE 200,
BSE 500, BSE Auto, BSE BankEx, BSE Consumer Durables, BSE Capital Goods, BSE FMCG, BSE HealthCare, BSE IT, BSE
Metal, BSE Oil & Gas, BSE PSU, BSE TECk, BSE Realty, BSE SME IPO, S&P BSE CARBONEX, S&P BSE GREENEX, S&P BSE
Shariah 50, BSE IPO, BSE POWER, and S&P BSE SmallCap indices.

Tell me about the market capitalization?

Market capitalization, often referred to as "market cap," is a measure of the value of a company. It is calculated by
multiplying the current stock price of a company by the number of shares outstanding.

For example, if a company has 10 million shares outstanding and its stock price is $50 per share, its market
capitalization would be $500 million.

Market capitalization is used to classify a company as small-cap, mid-cap, or large-cap. Small-cap companies have a
market capitalization of less than $2 billion, mid-cap companies have a market capitalization of between $2 billion
and $10 billion, and large-cap companies have a market capitalization of more than $10 billion.

The market capitalization of a company can be used as a measure of its size and can be used to compare it to other
companies in the same industry or sector. For instance, a company with a large market capitalization may have more
resources and be more financially stable than a company with a smaller market capitalization. However, It is
important to note that market capitalization alone doesn't indicate the company's overall financial health, it should
be considered along with other financial metrics such as revenue, earnings, and debt levels.

Additionally, the market capitalization can change with the stock price, it means that if a company's stock price
increases, the market capitalization will increase as well, and if the stock price decreases, the market capitalization
will decrease as well.

Where is the dollar vs the INR?

The current exchange rate for US Dollar (USD) to Indian Rupee (INR) is 81.41. This rate is up from 81.32 the previous
market day and up from 74.41 one year ago.

What is the 10-year T-Note rate?

The 10-year T-Note rate is currently 3.482%, with an open yield of 3.398%, a day high of 3.501%, a day low of 3.389%,
and a previous close of 3.399%. The current price of the 10-year T-Note is 105.2969, with a price change of -0.7188
and a price change percentage of -0.6797%. The coupon rate is 4.125% and the maturity date is November 15, 2032.

What is the price of gold 1 ounce?

The spot price for 1 ounce of gold is currently $1,934.69.

How to evaluate P/E ratio to determine if a stock is cheap If you don't have comparable companies data?

If you don't have comparable companies data, there are a few ways to evaluate a P/E ratio to determine if a stock is
cheap:

Compare the P/E ratio to historical levels: Look at the company's P/E ratio over the past few years to see if it is
currently high or low compared to its historical levels. If the current P/E ratio is lower than its historical levels, it
may be considered cheap.

Compare the P/E ratio to the industry average: Look at the average P/E ratio for the industry the company operates
in. If the company's P/E ratio is lower than the industry average, it may be considered cheap.

Compare the P/E ratio to the broader market: Look at the P/E ratio of a broad-market index, such as the S&P 500, to
see how the company's P/E ratio compares to the broader market. If the company's P/E ratio is lower than the
broader market, it may be considered cheap.

Compare the P/E ratio with other valuation metrics: P/E ratio should be used in conjunction with other valuation
metrics such as Price to Sales ratio(P/S), Price to Book value (P/B), Price to cash flow (P/CF) etc.
It's also important to consider the company's growth prospects, as companies with higher growth prospects tend to
have higher P/E ratios. A company with a high P/E ratio but high growth prospects may be more attractive than a
company with a lower P/E ratio but lower growth prospects.

Additionally, other factors such as debt levels, profitability, and cash flow should also be considered when evaluating
a company. The P/E ratio alone should not be the only metric used to compare companies, it is one of the many
metrics used to evaluate a company's performance and its future growth.

How to analyze different sectors of companies?

There are several ways to analyze different sectors of companies:

Research the industry: Understand the key trends, drivers and challenges that are shaping the industry. Look at the
size and growth prospects of the industry, and identify any major players or new entrants.

Analyze the financials: Look at the financial statements of companies within the sector to identify key metrics such as
revenue, profit margins, and return on equity. Compare these metrics across companies to identify any outliers or
trends.

Evaluate the management team: Look at the leadership and management team of the companies within the sector.
Assess their experience, track record, and strategic vision.

Look at the products and services: Analyze the products and services offered by the companies within the sector.
Look at the quality of the products, their pricing, and the company's distribution channels.

Analyze the competition: Look at the competitive landscape of the sector, identify the key players and understand
their strengths and weaknesses.

Evaluate external factors: Consider external factors such as government policies, technological advancements, shifts
in consumer preferences and economic conditions that may affect the sector.

Consider valuation: Analyze the valuation of companies within the sector, including metrics such as the P/E ratio,
Price to Sales ratio(P/S), Price to Book value (P/B), Price to cash flow (P/CF) etc.

Look at the risks: Identify and evaluate any significant risks associated with investing in the sector, such as regulatory
changes, industry consolidation, or changes in consumer preferences.

It's important to note that the analysis process may vary depending on the sector, and the above-mentioned points
are general guidelines. It's important to have a good understanding of the sector and the companies within it, and to
use a variety of metrics and analysis techniques to build a comprehensive picture of the sector's performance and
potential.

What does the cost structure like for the Manufacturing industry, How will you evaluate and what are their biggest
cost components?

The cost structure for the manufacturing industry can vary depending on the type of products being produced and
the manufacturing process used. However, there are some common cost components that are typically found in the
manufacturing industry:

Raw materials: This includes the cost of the materials used to produce the final product, such as metals, plastics, and
chemicals.

Labor: This includes the cost of wages and benefits for the employees involved in the manufacturing process, as well
as any contract labor costs.

Manufacturing overhead: This includes costs such as utilities, rent, insurance, and property taxes for the
manufacturing facility. It also includes costs for equipment maintenance, tooling, and supplies.

Distribution and logistics: This includes the cost of transporting the finished products from the factory to the
customer, including shipping, warehousing, and inventory carrying costs.
Research and Development: This includes the costs of researching, developing, and testing new products or
processes.

Selling, general and administrative expenses: This includes costs such as marketing, advertising, and administrative
expenses.

To evaluate the cost structure of a manufacturing company, you can use a number of financial metrics such as cost of
goods sold (COGS) as a percentage of revenue, and gross margin, which is calculated as gross profit divided by
revenue. These metrics can be used to compare the company to its competitors and to industry averages.

It's important to note that the cost structure of a manufacturing company can change over time, for example, with
changes in raw material prices, labor costs, or technological advancements. It's important to keep track of these
changes and how they affect the company's financial performance.

Another important factor to consider is the company's production processes and whether it's able to achieve
economies of scale, which could help to lower costs and improve margins. Also, the company's pricing strategies and
how it responds to the market conditions and competition should also be taken into account.

Let’s say that you run a French fries franchisee You have two options The first is to increase the price of each of
your existing products by 10% (imagining that there is price inelasticity) And the second option would be to
increase the total volume by 10% as a result of a new product Which one should you do and why?

It depends on the specifics of your French fries franchise and the market conditions. Both options have the potential
to increase revenue, but they have different implications for your business.

Increasing the price of each existing product by 10% may result in a short-term increase in revenue, but it could also
lead to a decline in demand if customers are price sensitive. If the demand for your products is inelastic, meaning
that changes in price do not significantly affect the quantity demanded, then this option may be a viable one.
However, if the demand is elastic, meaning that changes in price do significantly affect the quantity demanded, then
this option may lead to a decrease in overall revenue.

Adding a new product to your menu, on the other hand, has the potential to increase the total volume of sales
without affecting the price of your existing products. This option may appeal to customers looking for something new
and different, and it could lead to a 10% increase in total volume without having to risk losing customers due to a
price increase. However, launching a new product also comes with its own set of costs such as R&D, marketing, and
testing.

In summary, if you can increase the price of existing products without losing too much customers then the first
option will be preferable. But if you think that a price increase could lead to a significant decline in demand, it would
be safer to launch a new product to increase the volume. Additionally, you can also consider other options such as
creating bundle deals, or offering discounts for large orders. It's important to have a good understanding of your
customer base and the market conditions, and to use a variety of strategies and analysis techniques to build a
comprehensive picture of the best way to increase your revenue.

What do you think the income statement would look like for a Pharma company like Sun pharma, abbott and
cipla? What would their COGS be? How about their operating margin?

The income statement for a pharmaceutical company like Sun Pharma, Abbott, and Cipla would likely include the
following key elements:

Revenues: This would include revenues from the sale of pharmaceutical products, such as prescription drugs and
over-the-counter medications.

Cost of goods sold (COGS): This would include the cost of raw materials, labor, and manufacturing overhead
associated with producing the pharmaceutical products. For a pharmaceutical company, the cost of goods sold would
include the cost of the active pharmaceutical ingredients (API) and other raw materials, as well as the cost of
manufacturing and packaging.
Gross profit: This is calculated by subtracting COGS from revenues. Gross profit represents the amount of revenue
that a company has left over after accounting for the direct costs of producing its products.

Operating expenses: This includes expenses such as research and development, sales and marketing, general and
administrative expenses.

Operating income: This is calculated by subtracting operating expenses from gross profit. Operating income
represents the amount of money a company has left over after accounting for its direct costs of production and its
operating expenses.

Other income/expenses: This includes items such as interest income, foreign exchange gains/losses, and other
income or expenses that are not directly related to the company's main operations.

Net income: This is calculated by subtracting other income/expenses from the operating income. Net income
represents the company's overall profit or loss.

The COGS and operating margin of a pharmaceutical company can vary depending on a number of factors, such as
the type of products they produce, the complexity of their manufacturing process, and the level of competition in the
market. However, on average, the operating margin of a pharmaceutical company is around 20-30%.

It's important to note that the above-mentioned details are not specific to Sun Pharma, Abbott, and Cipla, and it's
important to check their financial statements for more accurate information. Additionally, the income statement of a
pharma company is affected by many factors such as patent expiration, regulatory environment, competition, and
the global economy. Therefore, it's important to keep track of these factors and how they affect the company's
financial performance.

I see that you have no market experience and what should make me believe that this is something you are
seriously interested in?

I understand that a lack of market experience can be a concern when considering me for a role in Equity Research.
However, I have done extensive research into the industry and have a strong understanding of the key concepts and
processes. My dedication to improving my knowledge and skills in this field is evidenced by my willingness to learn
and grow within this profession. I have developed a strong analytical mindset and excellent problem-solving skills
that I believe will make me a valuable asset to any Equity Research team. Furthermore, I am passionate about the
industry and have a keen interest in the financial markets, which I believe will make me a great fit for this role.

Why are you looking for an equity research job?

I am looking for an equity research job because I believe that I have the skills necessary to perform the job duties. I
have a strong understanding of accounts and financial fundamentals and have the ability to analyze the specifics of
individual companies to determine if the security is appropriately priced. Additionally, I have the ability to create
financial models to calculate the future value of equity shares, and I am familiar with the financial statements of the
companies I research.

Which stock do you pitch for me and why?

The stock I would pitch depends on which company you are interviewing for. Generally, when pitching a stock for an
equity research interview, you should focus on a company that is relevant to the firm and sector you are interviewing
for. You should also make sure to research the company thoroughly, identify the key drivers that are affecting the
stock, and consider the valuation metrics and catalysts for the company. Additionally, you should also consider any
potential risks and how you can mitigate them.

Can you tell me what valuation techniques you use if I ask you to value a company?

There are several valuation techniques that can be used to value a company, some of the most common ones
include:

Discounted Cash Flow (DCF) analysis: This is a method of valuing a company based on the present value of its future
cash flows. It involves forecasting the company's future cash flows, and then discounting them back to their present
value using a discount rate. This method is considered to be one of the most accurate ways of valuing a company
as it takes into account both the company's current and future performance.

Price to Earnings (P/E) ratio: This is a method of valuing a company based on the ratio of its stock price to its earnings
per share (EPS). It is used to compare a company's valuation to that of its peers and to the overall market.

Price to Sales (P/S) ratio: This is a method of valuing a company based on the ratio of its stock price to its revenue. It
is used to evaluate a company's valuation by comparing its stock price to its revenue.

Price to Book (P/B) ratio: This is a method of valuing a company based on the ratio of its stock price to its book value
(the value of its assets minus its liabilities). It is used to evaluate a company's valuation by comparing its stock
price to its book value.

Dividend Discount Model (DDM) : This is a method of valuing a company based on the present value of its future
dividends. It involves forecasting the company's future dividends, and then discounting them back to their present
using a discount rate.

Comparable Company Analysis: This method involves analyzing the financials of similar companies within the same
industry and using those companies' valuations as a benchmark for the company being valued.

It's important to note that no single method is perfect, and a combination of these methods should be used to get
the best estimate of a company's value. Additionally, it's important to keep track of the company's financial
performance, its growth prospects, the industry trends, and the overall economic conditions.

To your best ability What do you think is the main reason stocks fell by 20%?

It is difficult to determine the main reason for a stock market decline without more specific information about the
timing and circumstances of the decline. However, some possible reasons for a 20% decline in stock prices include:

Economic downturn: A recession or other economic downturn can lead to a decline in corporate profits and
consumer spending, which in turn can lead to a decline in stock prices.

Interest rate changes: A sudden increase in interest rates can affect the ability of companies to borrow money and
invest in growth, and this can lead to a decline in stock prices.

Political instability: Political instability, such as a war or a change in government policies, can create uncertainty and
lead to a decline in stock prices.

Natural disasters: Natural disasters can disrupt production and supply chains, and this can lead to a decline in stock
prices.

Geopolitical risks: Geopolitical risks such as trade tensions, sanctions, or other global events can affect the global
economy and lead to a decline in stock prices.

Company-specific events: A company-specific event such as a financial scandal, a product recall, or a change in
management can lead to a decline in stock prices.

It's important to note that a decline of 20% in stock prices could be a result of a combination of these reasons.
Additionally, it's important to keep in mind that stock market fluctuations are normal and are to be expected. It is
also important to note that past performance does not indicate future performance, and it is important to conduct
thorough research and analysis before making any investment decisions.

Tell me about what PE ratio is a popular valuation metric and what the PE ratio number tries to tell us?

The Price-to-Earnings (P/E) ratio is a popular valuation metric that compares a company's current stock price to its
earnings per share (EPS). It is calculated by dividing the current stock price by the EPS. The P/E ratio is used to
measure the relative value of a company's stock and to compare it to the value of other companies in the same
industry or to the overall market.

A high P/E ratio indicates that investors are willing to pay a premium for the company's earnings, while a low P/E ratio
indicates that the stock is relatively cheap compared to the company's earnings. However, it's important to note that
a high P/E ratio does not necessarily mean that a stock is overpriced, and a low P/E ratio does not necessarily mean
that a stock is underpriced.

The P/E ratio tries to tell us how much investors are willing to pay for a company's earnings. A high P/E ratio may
indicate that investors have high expectations for the company's future earnings growth, while a low P/E ratio may
indicate that investors have lower expectations for the company's future earnings growth. However, it's important to
keep in mind that the P/E ratio is only one metric and should be used in conjunction with other financial metrics such
as revenue, earnings, and debt levels, to get a more comprehensive picture of the company's performance.

Additionally, it's important to note that different sectors have different P/E ratio averages, a company in a sector with
higher growth prospects may have a higher P/E ratio, while a company in a sector with lower growth prospects may
have a lower P/E ratio. Therefore, it's important to compare the P/E ratio of a company to the average P/E ratio of the
industry or sector it operates in.

Tell me something about yourself that is not on your resume?

When it comes to equity research, I'm highly knowledgeable and passionate. I'm constantly reading and researching
the stock market, and I'm always looking for new and creative ways to analyze information. Additionally, I'm a great
communicator and have a great ability to explain complex financial concepts in a simple and concise way. I'm also
able to build strong relationships with clients and colleagues, which is essential in the equity research field.

Explain to me the type of financial modelling?

Financial modeling is the process of creating a numerical representation of a financial situation, typically using
spreadsheet software, in order to make informed decisions. There are several types of financial models, each with
their own specific purpose and structure.

Financial forecasting models: These models are used to predict future financial performance based on historical data
and other relevant information. They can be used to forecast revenue, expenses, cash flow, and other financial
metrics.

Valuation models: These models are used to estimate the intrinsic value of a company or asset. The most common
valuation models include discounted cash flow (DCF) analysis, price-to-earnings (P/E) ratio, and comparable
company analysis.

Budget and planning models: These models are used to create a financial plan for a company, such as a budget or a
strategic plan. They can be used to forecast revenue, expenses, and cash flow, and to identify potential risks and
opportunities.

Risk and sensitivity models: These models are used to analyze the potential risks and uncertainties that a company
may face. They can be used to simulate various scenarios and to estimate the potential impact of different risks on
the company's financial performance.

Monte Carlo simulation models: These models are used to analyze the potential outcomes of a decision under
uncertainty. They use probability distributions and random sampling to simulate different scenarios and to estimate
the potential range of outcomes.

Real-options models: These models are used to evaluate investment opportunities by considering the flexibility of a
company. They include the ability to make investment decisions based on future developments in the market or
industry.

It's important to note that financial modeling is an iterative process, and the model should be updated and refined as
new information becomes available. Additionally, the choice of the financial model should be based on the specific
purpose and the type of decision that needs to be made, and it's important to have a good understanding of the
assumptions and limitations of the model.

Do you understand the DCF model and Walk me through the process?

Yes, I understand the Discounted Cash Flow (DCF) model. It is a method of valuing a company based on the present
value of its future cash flows. The process of creating a DCF model typically includes the following steps:

Forecasting future cash flows: The first step in creating a DCF model is to forecast the company's future cash flows.
This typically involves forecasting revenue, costs, and expenses for a period of time, usually 5 to 10 years.

Determine the discount rate: The next step is to determine the discount rate, which is used to discount the future
cash flows back to their present value. The discount rate is typically based on the company's cost of capital and
reflects the risk associated with the cash flows.

Calculate the present value of future cash flows: Once the future cash flows and discount rate have been determined,
the present value of the cash flows can be calculated by dividing each year's cash flow by (1+ discount rate) to the
power of the number of years in the future.

Sum the present value of future cash flows: The final step is to sum the present value of all the future cash flows to
arrive at the total present value of the company.

Terminal Value calculation: Terminal value is the value of a company beyond the projection period and it is calculated
by estimating the perpetuity growth rate and multiplying it by the last year's projected free cash flow(FCF) and
then discounting it back to the present value.

Sum the present value of terminal value: The final step is to add the present value of the terminal value to the
present value of the future cash flows.

It's important to note that the DCF model is sensitive to the assumptions used in forecasting future cash flows and
determining the discount rate, so it's important to consider a range of scenarios and to be aware of the limitations of
the model. Additionally, the DCF model.

Can you tell me about any previous research work you have done?

I have done extensive research in the field of equity research. My research has focused on the evaluation of
companies and their stocks, which includes analyzing their financials and market trends. I have also done analysis on
valuation techniques such as Discounted Cash Flow Analysis, Comparable Companies Analysis, and Sensitivity
Analysis. In addition, I have done research into the capital markets and the function they serve. Finally, I have done
research on the most important factors to consider when analyzing a company, how to determine if a company is
undervalued or overvalued, and the most common ratios and metrics used for company analysis.

Can you tell me which industry has a future?

The five industries with a promising future are Analytics and Big Data, Cybersecurity, Health Care for the Aging,
Renewable Energy and Drones. These industries are expected to experience rapid growth in the coming years due to
their relevance to the current technological landscape.

What type of valuation work have you done in the previous company?

I have worked on a variety of valuation techniques including Discounted Cash Flows, Comparable Companies
Analysis, Free Cash Flows, Free Cash Flow to Equity, and Sensitivity Analysis. I have also worked on Equity Research
Reports, where I have been responsible for writing and analyzing the industry overview, company financials and
ratios, valuations and projections, management overview and recommendation.

Tell me about which industry you like to analyze and why?

One popular industry for analysis is technology. The technology industry is constantly evolving and is often at the
forefront of innovation. Companies in this industry can have high growth potential and can be a source of disruptive
technologies. Analyzing technology companies can be interesting because of the potential for significant returns on
investment, the potential for new products and services, and the potential for market disruption.

Another popular industry for analysis is healthcare. The healthcare industry is a large and growing sector that is
essential to the well-being of society. Companies in this industry can have a significant impact on people's lives, and
they can be a source of innovative medical treatments and technologies. Analyzing healthcare companies can be
interesting because of the potential for long-term growth, the potential for new products and services, and the
potential for positive social impact.

Retail industry is also interesting to analyze, as it is a consumer-facing industry that reflects the broader economy and
consumer sentiment. Companies in this industry can provide insight into consumer spending patterns, trends in e-
commerce, and the health of brick-and-mortar retail.

Furthermore, the financial industry is also a popular one for analysis, as it provides insight into the broader economy
and the performance of different sectors. Companies in this industry can provide insight into the performance of
different asset classes, the health of the banking sector, and the overall performance of the global economy.

Ultimately, the choice of industry to analyze depends on an individual's interest, expertise and the decision they want
to make. It's important to conduct a thorough research and analysis of the industry and the company before making
any investment decisions.

Suppose I am given a task to make a report for an automobile company. How will you gather data and information?

Gathering data and information for a report on an automobile company can involve several steps and sources. Some
possible methods to gather data and information include:

Financial statements: One of the most important sources of information is the company's financial statements, such
as the income statement, balance sheet, and cash flow statement. These statements provide a detailed overview of
the company's financial performance and can be used to analyze trends, profitability, and liquidity.

Industry reports and publications: Another important source of information is industry reports and publications.
These can provide information on the overall performance of the automobile industry, trends, and market
conditions.

Company press releases and annual reports: Company press releases and annual reports can provide information on
the company's strategy, performance, and plans for future growth.

Government data: Government data can provide information on the market size, growth rate, import/export data,
and other macroeconomic data of the automobile industry.

Online research: Online research can be used to gather information on the company's competitors, the company's
market position, and the company's reputation.

Surveys and customer feedback: Surveys and customer feedback can be used to gather information on customer
satisfaction, brand perception, and customer loyalty.

Consultation with experts: Consultation with experts in the field of automobile industry, such as industry analysts,
consultants, or professors can provide valuable insight and information.

It's important to note that the data and information gathered should be reliable, accurate, and up-to-date.
Additionally, it's important to ensure that the data and information gathered is relevant to the report and the
decision that needs to be made.

Being a successful analyst what skills do you have?

To be a successful analyst in Equity Research, I have strong numerical skills, good knowledge of finance and
investments, and excellent communication skills. I am also detail-oriented, analytical, and have excellent writing
skills. Furthermore, I have the ability to analyze data and financial statements, understand investments and markets,
and have a deep understanding of the industry. Additionally, I have the ability to think critically and come up with
innovative solutions.
What is the main reason that stocks go up or down?

Stocks go up or down based on a variety of factors, some of the most important ones include:

Company-specific news and events: This includes factors such as earnings reports, product launches, management
changes, and mergers and acquisitions. Positive news and events can cause a stock to go up, while negative news and
events can cause a stock to go down.

Economic conditions: Economic conditions such as interest rates, GDP growth, and inflation can affect the overall
performance of the stock market and individual stocks. Strong economic conditions can cause stocks to go up, while
weak economic conditions can cause stocks to go down.

Industry trends: Industry trends such as technological advancements, changing consumer preferences, and
regulatory changes can affect the performance of individual stocks and sectors. Positive industry trends can cause
stocks to go up, while negative industry trends can cause stocks to go down.

Political and geopolitical events: Political and geopolitical events such as elections, war, and trade tensions can affect
the stock market and individual stocks. Uncertainty caused by these events can cause stocks to go down, while
positive developments can cause stocks to go up.

Market sentiment: Market sentiment refers to the overall mood of investors and traders. Positive market sentiment
can cause stocks to go up, while negative market sentiment can cause stocks to go down.

It's important to note that the stock market is complex and influenced by multiple factors, therefore, it's hard to
predict the performance of the stock market or a specific stock. Additionally, it's important to conduct thorough
research and analysis before making any investment decisions.

Give me your overview on the economy and the stock market?

The economy and the stock market are closely related and can affect each other in a number of ways. A strong
economy can lead to higher corporate profits and consumer spending, which can in turn lead to higher stock prices.
Conversely, a weak economy can lead to lower corporate profits and consumer spending, which can lead to lower
stock prices.

Economic indicators such as GDP, inflation, and interest rates can also affect the stock market. For example, a low
unemployment rate and a high GDP growth rate are usually considered to be positive indicators for the stock market,
as they suggest a strong economy. On the other hand, high inflation and interest rates can be negative for the stock
market, as they can lead to a decrease in consumer spending and corporate profits.

It's important to note that the stock market is complex and influenced by multiple factors, including global events,
political and geopolitical developments, and company-specific events. Additionally, it's important to conduct
thorough research and analysis before making any investment decisions.

What are the current interest rates and what do you think about in future?

The current average interest rate for a 30-year fixed mortgage is 6.33%. Bankrate's forecast shows rates continuing to
break records, with the average credit card rate rising to 20.5 percent by the end of 2023. Long-term interest rates
are likely to stay below 4% this year, trending down as the economy slows and the inflation rate comes down. The
Federal Reserve has forecast the Federal Funds Rate to be 2.6% by 2023, before levelling off. If the historically high
inflation of 2022 continues to dissipate and the economy falls into a recession, it's likely mortgage rates will decrease
in 2023. Kiplinger's Economic Outlooks project the Fed-Funds Rate and 10-year Treasury yield to be 1.75% and 2.75%,
respectively, in 2026.

If interest rates were to go up then which sectors do you think would benefitted and which would stand to
disadvantage?

Interest rate changes can have a significant impact on different sectors of the economy. Generally speaking, when
interest rates go up, it becomes more expensive for companies and consumers to borrow money, which can have a
negative impact on certain sectors.
Sectors that may be negatively impacted by a rise in interest rates include:

Real estate: Higher interest rates can make it more expensive for individuals and companies to borrow money to buy
or refinance properties. This can lead to a decrease in demand for real estate and a decline in property prices.

Consumer discretionary: Higher interest rates can make it more expensive for consumers to borrow money to buy
cars, appliances, and other consumer goods. This can lead to a decrease in consumer spending and a decline in
demand for consumer discretionary goods.

Financials: Higher interest rates can make it more expensive for banks to borrow money, which can lead to a decline
in their profits. Additionally, when interest rates rise, the spread between short-term and long-term interest rates
narrows, which can negatively impact the profitability of the banks.

Sectors that may be positively impacted by a rise in interest rates include:

Utilities: Utility companies often have long-term debt and a stable cash flow, which means they can afford to pay
higher interest rates on their debt.

Consumer staples: Companies that produce consumer staples such as food, beverages, and household goods are less
affected by changes in interest rates as they tend to be necessities and have a stable demand.

Technology: Companies in the technology sector, such as semiconductors, software, and internet-based companies,
are less impacted by interest rate changes as they are driven by innovation and advancements in technology rather
than interest rate changes

It's important to note that interest rate changes can have both positive and negative impacts on different sectors and
that interest rate changes are only one of the many factors that can influence the stock market. Additionally, it's
important to conduct thorough research and analysis before making any investment decisions.

If you were to get a job here then which sector or industry would you select and why?

In general, the selection of a sector or industry to focus on would depend on an individual's interests, expertise, and
career goals. Some factors that can be considered when selecting a sector or industry include:

Growth prospects: Some sectors and industries have higher growth prospects than others, which can provide
opportunities for companies to increase their revenue and profits.

Competitive landscape: Some sectors and industries are more competitive than others, which can affect the
profitability of companies operating in those sectors.

Regulatory environment: Some sectors and industries are more heavily regulated than others, which can affect the
profitability of companies operating in those sectors.

Industry trends: Some sectors and industries are at the forefront of innovation and technology, which can provide
opportunities for companies to develop new products and services.

Personal interest: It's important to choose an industry or sector that you have an interest in, as it will help you to stay
motivated and engaged in the research process.

Ultimately, the choice of a sector or industry to focus on would depend on an individual's specific interests, expertise,
and career goals. It's important to conduct thorough research and analysis of the sector or industry and the
companies operating in that sector before making a decision.

How would you compare Consumer Durable firms?

When comparing consumer durable firms, there are several factors that can be considered, including:

Financial performance: This includes factors such as revenue, profits, earnings per share (EPS), return on equity
(ROE), and other financial metrics. Comparing these metrics across firms can provide insight into the financial
performance of each firm.
Market share: Market share is an important factor to consider when comparing firms in the consumer durable
industry. Firms with a larger market share are likely to have more pricing power and be more stable than firms with a
smaller market share.

Product and brand portfolio: Firms with a diversified product and brand portfolio are likely to be more stable than
firms that rely on a single product or brand.

Distribution network: Distribution network is an important factor to consider when comparing firms in the consumer
durable industry. Firms with a strong distribution network are likely to be able to reach more customers and generate
more sales than firms with a weaker distribution network.

Competitive Landscape: Consumer durable firms compete with each other based on product quality, price, and
services offered. Evaluating the strengths and weaknesses of the firms in terms of these factors can provide an
insight into their competitiveness.

Management and leadership: The management team and leadership of a company can have a significant impact on
the performance of the company. Compare the management teams and leadership of the firms to assess their
experience, track record, and stability.

Valuation Metrics: Valuation metrics such as Price to Earnings ratio, Price to Sales ratio, Price to Book ratio, and
enterprise value to EBITDA can be used to compare the relative valuations of the firms.

It's important to note that these are just a few of the many factors that can be considered when comparing
consumer durable firms, and that the choice of factors to consider will depend on the specific decision that needs to
be made. Additionally, it's important to conduct thorough research and analysis before making any investment
decisions.

Are you prepared for stressful work?

When comparing consumer durable firms, there are several factors that can be considered, including:

Financial performance: This includes factors such as revenue, profits, earnings per share (EPS), return on equity
(ROE), and other financial metrics. Comparing these metrics across firms can provide insight into the financial
performance of each firm.

Market share: Market share is an important factor to consider when comparing firms in the consumer durable
industry. Firms with a larger market share are likely to have more pricing power and be more stable than firms
with a smaller market share.

Product and brand portfolio: Firms with a diversified product and brand portfolio are likely to be more stable than
firms that rely on a single product or brand.

Distribution network: Distribution network is an important factor to consider when comparing firms in the consumer
durable industry. Firms with a strong distribution network are likely to be able to reach more customers and generate
more sales than firms with a weaker distribution network.

Competitive Landscape: Consumer durable firms compete with each other based on product quality, price, and
services offered. Evaluating the strengths and weaknesses of the firms in terms of these factors can provide an
insight into their competitiveness.

Management and leadership: The management team and leadership of a company can have a significant impact on
the performance of the company. Compare the management teams and leadership of the firms to assess their
experience, track record, and stability.

Valuation Metrics: Valuation metrics such as Price to Earnings ratio, Price to Sales ratio, Price to Book ratio, and
enterprise value to EBITDA can be used to compare the relative valuations of the firms.

It's important to note that these are just a few of the many factors that can be considered when comparing
consumer durable firms, and that the choice of factors to consider will depend on the specific decision that needs to
be made. Additionally, it's important to conduct thorough research and analysis before making any investment
decisions.

Suppose you write a research report BUY recommendation for any IT stock for long term and you know 2 days
later the stock price falls by 7%. What would be your recommendation?

If the stock price falls by 7% two days after I've made a BUY recommendation, I would consider the current market
sentiment and analyze the potential risk factors that may have caused the stock to fall. I would also analyze the
current market conditions and the outlook for the industry. If I still find potential for growth and the risks are
manageable, I would likely maintain my recommendation. However, if the risks are significant and the outlook for the
industry is poor, I would likely change my recommendation to HOLD or SELL.

How many companies are listed in BSE and NSE?

there were around 5,500 companies listed on the Bombay Stock Exchange (BSE) and around 1,800 companies listed
on the National Stock Exchange (NSE) in India.

Tell me about the Analyst to Associate ratio?

The analyst to associate ratio refers to the ratio of junior-level analysts to more senior-level associates in an
investment banking or financial services firm. In general, the ratio is used as an indicator of the firm's overall staffing
levels and can provide insight into the firm's level of efficiency and productivity.

The ratio can vary widely depending on the firm and the specific area of the business. For example, in a research
department, the ratio of analysts to associates may be higher than in an investment banking department, where the
ratio may be lower. In general, a lower ratio indicates that the firm may be more focused on cost-cutting and
efficiency, while a higher ratio may indicate that the firm is more focused on growth and expansion.

It's also worth noting that a lower ratio would generally imply a higher workload for each individual analyst and
therefore a higher turnover rate.

Suppose you are concall in quarterly earnings and you have to ask a question to the CEO about the future earnings
then what would you ask first?

"What are the key drivers of the company's projected earnings growth for the next quarter and beyond? Are there
any specific initiatives or plans in place that the company believes will drive increased revenue and profitability?"

How do you rank buy-side clients?

Buy-side clients, such as mutual funds, hedge funds, and pension funds, can be ranked based on a variety of factors,
including assets under management (AUM), performance, and trading activity. Here are a few examples of how buy-
side clients might be ranked:

Assets under management (AUM): Clients with larger AUM tend to be more attractive to sell-side firms, as they may
have more capital to invest and can generate more trading volume. Clients can be ranked by AUM, with the largest
clients at the top of the list.

Performance: Clients that have a history of strong investment performance may be more attractive to sell-side firms,
as they may be more likely to generate returns for their investors. Clients can be ranked by their past performance,
with the best-performing clients at the top of the list.

Trading activity: Clients that trade more frequently can generate more revenue for sell-side firms. Clients can be
ranked by the amount of trading activity they generate, with the most active clients at the top of the list.

Service needs: Clients that have specific service needs such as research, execution, or customization might be ranked
higher based on the firm's capabilities to fulfill those needs.
It's worth noting that these are not the only ways to rank buy-side clients, and different firms may use different
criteria based on their own priorities and business models. However, these examples can be a good starting point to
evaluate and rank buy-side clients.

Tell me being a successful analyst what requires which one skill you have?

If you want to be a good analyst you need to know about financial models, fundamentals and financial statements,
sectors and industries, and valuation. You also need to know how to solve problems, be analytical and detailed-
oriented, and be confident enough to trust your gut when the market is wrong.

Note: If you're good at these skills, you'll be more likely to do well in an interview.

Do you think your analysis skill will useful for our organization?

Yes, because I have a good understanding of financial accounts, a company's business model, or the strengths and
weaknesses of management, as well as a solid understanding of macroeconomic trends or key political issues
regionally or globally that could have an impact on one's stocks or the stock market in general, among other things.

Tell me outlook on the economy and the stock market?

In the year 2020, the Indian economy has performed significantly better than expected. Nifty 50 and Sensex have
increased by 15 percent and 16 percent, respectively, from January 1, 2020 to December 31, 2020, according to
Bloomberg data. Although the Government of India and the Reserve Bank of India have made significant
contributions to rural revitalization, their efforts have received insufficient recognition. Favorable policies and rural
tailwinds are expected to be the primary drivers of the recovery of the urban economy while the rural economy
continues to struggle. Economic and health indicators are showing signs of gradual normalisation, paving the way for
an upward revision to GDP forecasts in the coming months. Political stability is a critical factor in ensuring that the
markets remain stable. Despite the fact that valuations are expensive and take into account the majority of positive
factors, an increase in commodity prices poses a threat to inflation. However, we do not anticipate that this will have
a significant impact on our recommended portfolio. We have selected stocks that have either strong business models
that have stood the test of time, or that are available at a compelling valuation and/or that pay an attractive dividend
yield, as the case may be.

Tell me about Federal Fund rate and what do you think will happen to them over the next 5 year?

People use the term "federal funds rate" when they talk about the rate set by the Federal Open Market Committee
(FOMC). Overnight, commercial banks borrow and lend each other their excess reserves to each other. This target is
the rate at which they do this. There are eight meetings of the FOMC, the Federal Reserve System's policy-making
body. They meet eight times a year to set the target federal funds rate, which is part of the Fed's money policy. This is
used to help the economy grow, and it helps.

According to my viewpoint, interest rates should be raised in response to the economic consequences of the
pandemic.

Are you prepared to work in a high-stress environment like equities research?

When it comes to work, I believe that pressure can be beneficial; working under time constraints has taught me how
to priorities and balance my workload. In one instance, I had three extremely important assignments due in the same
week, and I managed to complete each assignment on time because I meticulously organized and planned how I
would approach each project.

How you will rate yourself in financial modelling scale of 1 to 10?

For many years, I've been working with a financial modelling project. There are many aspects of the programme with
which I am comfortable, and in those areas, I would place myself very high, perhaps 9–10 on the scale. I'm confident
that I can get through it without assistance or mistakes.

If you have five quarterly results and you have to prepare in next 2 days how you will handle?

I'll double-check the deadline for publishing a report before moving forward with the publication process.
First and foremost, I will listen to earnings calls.

Second, I'll make notes some notes, reference notes, and growth projections.

Third, make use of shortcuts to construct a consensus model.

Forth and last, I will give a report on quarterly results.

If fed interest rates were to go upwards, which sectors do you think would benefit?

Some industries, in my opinion, will benefit from an increase in interest rates in the future. The financial industry is
one of the sectors that tends to benefit the most from this trend. Because they can charge higher interest rates for
lending, banks, brokerages, mortgage companies, and insurance companies often see an increase in their earnings
when interest rates rise.

If you were to get a job here, what would be your dream sector and why? How would you compare XYZ firm to
other firms?

My favorite industry is the information technology sector because it has a low level of debt in comparison to other
industries. Now, in order to compare one company to another, I will examine some key ratios such as the price-to-
earnings ratio and the net profit margin.

You attend concall and you will know the company unable to earn profit in next quarter then how you will drop
the ratings?

To put it simply, I will try to figure out why they aren't making any money. After that, I'll look into the industry and
sector to see what factors are driving growth. After conducting due diligence, I will write about why the company is
unable to make a profit and what the reasons are for the company's rating decline.

Why do DCF projections typically go out between 5 and 10 years?

The ability to predict the future in a reasonable manner determines the length of the forecast period. A tenure of
less than 5 years is frequently deemed insufficiently long. When the time horizon exceeds ten years, it becomes
increasingly difficult to forecast accurately.

What do you mean by Equity coverage?

Initiation of coverage indicates that one or more equity analysts will begin to provide sell-side research about a stock
and make investment recommendations as a result of that research and recommendations. In the financial industry,
coverage refers to the analysts' ongoing work of reviewing and reporting on a company's business, as well as making
a recommendation, such as a buy or sell recommendation.

Is it still possible to get to know management about internal information of companies?

It is dependent on the company. If a company is one of our clients, there are various options for obtaining
information from management or conducting a company visit.

What is the difference between buy-side and sell-side in equity research?

Buy-Side –The side of the financial market that purchases and invests large amounts of securities for the purpose of
money or fund management is known as the derivatives market.

Sell-Side –The sell side of the financial market is the side that deals with the creation, promotion, and sale of traded
securities to the general public. It is the opposite of the buy side.

What are five questions you'd ask the company management? What other criteria would you use to evaluate
management?

I'll ask a few questions that are frequently asked.

What do you think the sales will look like in the next 12-24 months? What is the most beneficial use of the cash on
the balance sheet of the company? Is the company planning to raise capital to fund future growth, and if so, what is
the company's strategy for growth? Who are the primary competitors in your industry, and what strategies do you
intend to use to defeat the company?

When analyzing any stock what parameter you use ?

• Quality Ratings
• Financial Leverage
• Company’s Liquidity
• Positive Earnings Growth
• Price to Earnings Ratio

Why private companies going listed in stock exchange?

The primary goal of listing is to raise money for a good cause. The company has the ability to issue new shares in
order to raise funds for growth and expansion. When the shares are subscribed for, there is an inflow of significant
funds from the market, which provides the company with the resources it needs to meet a significant portion of its
financial obligations.

What are the disadvantages of PE?

• Does not take other factors into consideration

• Does not take other factors into consideration
• Requires context
• Does not take growth into consideration
• The price of a share does not take debt into consideration

How to do Sensitivity Analysis in Equity Research?

Furthermore, depending on the industry, it may be necessary to include known variables that can affect variable
prices in order to make a profit. Example: If we are testing the price sensitivity of UPS to a shift in oil prices, we would
want to include an estimate of how much this shift in oil prices will affect margins. The margins from quarters where
oil prices were around average for the previous 5 years could be compared to margins from quarters where oil prices
were in the top 20th percentile for that same period. Depending on the results of this analysis, UPS may be able to
demonstrate that it successfully hedges against spikes with futures or other financial instruments. It could also
provide a factor that could be used to project the impact of a change in oil prices, whether positive or negative.

If it is a highly leveraged company, adjustments to the wacc will have a significant impact, whereas if it is a less
leveraged company, the impact will be less dramatic.

What is Free Cash Flow to Equity?

This metric measures how much "cash" a company can return to its shareholders after deducting taxes, capital
expenditures, and debt repayments.

It can only be used in situations where the company's leverage is not volatile, and it cannot be used in situations
where the company's debt leverage is changing.

FCFE= Net Income +Depreciation & Amortization + Changes in Working Capital + CAPEX + Net Borrowings

What’s earning season? How would you define it?

The majority of companies report their earnings within the same month, which means models must be updated in
the week/weeks prior to the company's earnings report.

What you know about comparable companies

The value of a target can be determined by comparing it to similar companies that have key characteristics in
common with the target (e.g., business, financial, performance drivers, and risks).

Is intended to reflect "current" value in accordance with current market conditions and sentiment
If you were a portfolio manager, with $10 million to invest, how would you do with it?

You need to know about the people in charge, some valuation metrics (like PE multiples, EV/EBITDA, and so on), and
some operational statistics about these stocks so that you can use the information to back up your claims about
them.

Pitch a stock to me

Give the company's name and a brief description of what it does.

Provide a high-level overview of the company's financials to demonstrate its size and profitability.

Due to any competitive advantages it may possess, explain why it is undervalued or more attractive than its
competitors.

Consider how there is a long-term trend in its favor—it isn't just looking good for the next month or two, for
example.

Discuss how the company's fortunes will improve dramatically over the next 5-10 years.

Where do you see Market in next 5-10 Years?

In my opinion, the market is bullish because the economy is recovering from the Covid-19 pandemic, and the
technology sector, pharmaceuticals, and fast moving consumer goods (FMCG) will continue to grow rapidly in the
future.

What are your long term goals?

As I read through the job description for this position, I made a list of short- and long-term objectives that I hoped
would help me achieve the objectives set forth. I intend to go above and beyond what has been asked of me. Taking
on larger, more challenging targets in the long term will allow me to better assess my abilities and abilities. During
this initial period, I intend to shape myself in order to be better prepared to deliver on larger goals in the future.

What is financial modeling and how is it useful in equity research?

Financial modelling is a method of projecting a company's financials in a very organized manner. Because companies
only provide historical financial statements, a model can assist in understanding the company's fundamentals - ratios,
debt, earnings per share, and other parameters.

Using financial modelling, you can predict how a company's balance sheet, cash flow statement, and income
statement will look in future years.

What is the PEG ratio, and how does it differ from the P/E?

The PEG ratio is the price-to-earnings ratio of a company divided by the rate at which its earnings are growing over a
period of time (typically the next 1-3 years). The PEG ratio is a method of adjusting the traditional price-to-earnings
ratio by taking into account the expected growth rate in earnings per share in the future. In the case of companies
with a high growth rate and an elevated price-earnings ratio, this can aid in the "adjustment."

The price-to-earnings ratio (P/E ratio) is widely used and simple to calculate, but it has some drawbacks that investors
should be aware of when using it to determine the value of a stock. In contrast to the P/E ratio, which does not take
into account future earnings growth, the PEG ratio provides more information about the value of a stock.

How would you analyze a chemical company?

Chemical companies invest a significant amount of their resources in research and development. As a result, if the
debt-to-equity ratio can be calculated, it will be easier for analysts to determine how effectively the chemical
company is utilising their capital. A lower debt-to-equity ratio always indicates that a chemical company is in better
financial shape.

In addition to the D/E ratio, one can examine the net profit margin and the P/E ratio.
What is meaning of MiFID II?

MiFID II is a revision of the Markets in Financial Instruments Directive (MiFID), which was first published in 2004 and
has been in effect since then. It serves as the foundation for financial legislation in the European Union, and it is
intended to provide assistance to traders, investors, and other participants in the financial sector. The primary goal of
MiFID II is to maintain the strength, fairness, effectiveness, and transparency of financial markets.

Tell me is there any possibilities Terminal value can be Negative?

It is theoretically possible, but not in practice. The terminal value of a company is the value of its expected free cash
flow after the period covered by the explicit projected financial model.

Terminal Value = (FCFF x (1+Growth Rate))/(WACC - growth rate)

If, for some reason, the WACC is less than the growth rate, the terminal value may be less than the growth rate.

Why PE ratio high of a tech company is higher than the PE of a mature company?

Moreover, it can be demonstrated that the Price-Earnings multiple is driven by the ratio (1–g/ROE) / (r– g), where r
represents the cost of equity, g represents the growth rate, and ROE represents the return on equity. A high-tech
company's price-to-earnings ratio (PE) may be higher because investors expect the stock to grow more rapidly.

Explain me about your investment philosophy and how you look your own investment strategy?

According to what I want to accomplish for myself, my investment strategy is different each time.

When used in conjunction with a large number of derivatives and options, it can be a very aggressive investment
strategy; when used in conjunction with a long-term investment strategy, it is much more conservative. If I want to
earn a 30 percent return in three months, or a 5 percent return per year for five years, the underlying strategies must
be distinct. The basic rule is to look for high-quality companies or funds with strong management and balance sheets
that are in a growing industry, and then to hold onto them for a minimum of five years after discovering them.

Suppose you analyze a listed company and you have to find deep detail of the company then what you question
will be with yourself?

• Is the management team delivering on their promises on a consistent basis?

• Is there a clear plan for the future in place from the top down at the company?
• Is the management team up to the task of dealing with the crisis?
• Is the management team putting together the best possible product mix?
• Is the management reliant on a small number of products and a small number of clients?
• Is the management spending enough money on research and development?
• Is there anything the management is doing to keep their best employees?
• Is the management team allocating their resources wisely to new products and business expansion?
• Is the management team prepared to accept the changes and challenges that lie ahead?
• Is the management team more concerned with the bottom line or the margins?
• Is the management team focusing on temporary solutions or on long-term solutions for a specific problem?
• Is their business module a long-term, financially viable component? Does the company's management
distribute its profits to its stockholders? Is the company's management communicating with its stakeholders
and providing them with reassurance if the company is struggling? Is the company's management open and
transparent?

Imagine you attend a earning call What questions you would ask a company management?

It all depends, but I'll ask some questions like, for example,

What is the most beneficial use of the cash on the balance sheet of the company? Is there a plan in place for the
company to raise capital in order to fund future growth?

When it comes to sales, where do you see them heading in the next 12 to 24 months?
When it comes to your industry, who are the up-and-coming competitors you should be looking out for.

Tell me between EBIT and EBITDA, which is better?

Because depreciation and amortization are non-cash expenses, they are excluded from EBITDA calculations.
Alternatively, the cost of debt and its tax consequences. As a result, EBIT is superior.

Imagine you are facing conflict with a colleague and other team member and how you deal with it?

I understand that different people have varying points of view, which can lead to miscommunication and conflict
between people. The direction of the project was determined after we each explained our respective perspectives
and thought processes to one another. When it comes to conflict resolution, communication is essential.

What factors affect price of copper?

Copper is used extensively in our industrial production, and copper wire has a significant impact on the
telecommunications industry as well.

Copper's price is influenced by a number of important factors.

Situation of the World's Economy

Copper consumption is primarily concentrated in the industrialized countries of the world. A greater influence on
copper prices is exerted by the economic conditions of these countries such as the United States, Japan, Western
Europe, and other countries.

Seasonal Variables The price of copper fluctuates according to the season. Typically, the lowest copper price is
reached in January, and the highest price is reached in August.

Is EBITDA a good proxy for cash flow?

With the exception of capital-intensive industries such as oil and gas, EBITDA is positive.

If the RBI Repo hikes rates by 0.5%, what would you expect the impact to be on stock market?

When the repo rate rises, the borrowing rates rise in tandem with it. Likewise, the cost of borrowing increases, as
does the cost of providing funds to the company. As a result, the cost of the product rises, and the rate of inflation
rises. Whenever the price of goods and services rises, people spend more and save less. When people save less, the
amount of money that flows into the stock market decreases.

What is the 10-year Treasury Note rate?

1.92% for Feb 18 2022

What is the price of gold?

$1,908.04 (As On February 21)

Tip: Make Sure you should prepare current index price of stock, commodities, interest, etc when you prepare for any
interview

Tell me Is it better to invest in high P/E or low P/E stocks?

A lower price-to-earnings ratio indicates that the stock of a particular company is inexpensive, but this does not
always imply that you should purchase the stock. A lower price-to-earnings ratio may be due to some negative news
about the company, as a result of which investors are unwilling to pay more for the stock. The lower the price-to-
earnings ratio of a company, the greater the return on your investment. In order to make purchasing decisions, it may
be necessary to compare the price-to-earnings ratio (P/E) with competitors as well as with all of the peers on
average. Investors' confidence in a company is reflected in its price-earnings ratio, which indicates that they are
willing to pay a higher price for the stock when compared to the company's earnings.

A low price-to-earnings ratio isn't always a good or bad thing; however, it can be a sign that a stock is a relative
bargain when compared to its competitors. This is due to the fact that you can theoretically purchase a share of the
company's earnings for less money than it would cost to purchase a share of the same earnings from another
company.

Why use EBITDA instead of enterprise value in the valuation process.

EBITDA has no relationship with enterprise value. EBITDA (earnings before interest, taxes, depreciation, and
amortization) is defined as earnings before interest, taxes, depreciation, and amortization. A company's true earning
power cannot be determined by this metric, which is essentially meaningless. EV is market cap + debt - cash and cash
equivalents.

Tell me when you would see a company with a high EV/EBITDA multiple but a low PE multiple.

This relationship implies that there is a significant difference between the enterprise value of the firm and the equity
value of the firm. The term "net debt" refers to the difference between the two. Therefore, a company with a
significant amount of net debt will most likely have a higher enterprise value to earnings per share (EV/EBITDA)
multiple.

Which is a very popular valuation metric What would you call the inverse of the P/E ratio? What does it tell you?

A company's earnings yield, also known as the earnings price ratio (E/P ratio), is the earnings per share of common
stock divided by the stock's market price.

The earnings-to-price ratio rises in tandem with earnings and falls in tandem with increases in the stock price. The
proportion of each dollar invested in the stock that was profited by the company.

Can you elaborate us why do you want work for us?

For the position of financial analyst at Greenway Health, I believe that my previous experience manipulating data
from financial statements, combined with my ability to work well with others, would make me a great candidate for
the position. My track record demonstrates that I consistently go above and beyond the call of duty in order to add
value in any capacity in which I have served.

Why do you want to work on Equity research?

I'm drawn to the field of equity research because I get a thrill out of discussing the factors that influence the price of
a company's stock. It's almost as if you're solving a giant math problem where all the numbers fall into place and you
finally understand what's going on. I am fascinated by the reasons why revenue is down or why the market sentiment
for a stock is up.

Elaborate me the difference between sell side and buy side?

A sell-side analyst is someone who works for a brokerage or firm that manages individual accounts and makes
recommendations to the firm's clients on investments. Buy-side analysts typically work for institutional investors,
such as hedge funds, pension funds, or mutual funds, and are paid on a commission basis.

Tell me about what you have qualities as a analyst?

It has been rewarding to be able to conduct research and analysis in my classes and internships. I enjoy delving into
the numbers and details, and I hope to be able to continue that work and gain more experience in this position in the
future.

Tell me the main difference between Fundamental Analysis and Technical Analysis and which one you prefer ?

The main difference between

Fundamental Analysis: Fundamental analysis is concerned with determining the intrinsic or true value of a stock in
order to determine if it is overvalued or undervalued in the marketplace. This is accomplished by taking into account
a variety of indicators, such as the profit generated by the company, its business model, the growth of its industry,
and others, before making a determination. Essentially, the goal is to take into consideration every significant
externality that could have an impact on the stock's price. Analysts who use this approach study and analyze a stock
using complex ratios and metrics, which are difficult to understand.
Technical Analysis: This method of analysis attempts to predict the price movement of a stock by only taking into
account the price action patterns and returns generated by it, as opposed to other methods of analysis. There is a
fundamental concept at work here: patterns frequently repeat themselves and exist on a continuum. As a result,
investors who use this method frequently rely on momentum-based indicators in conjunction with support and
resistance levels in order to analyze the price of the stock.

Fundamental analysis is my preferred method of investing because I intend to hold onto a company for the long haul.

What type of skills you can you offer as a analyst?

I can bring strong analytical and quantitative abilities, problem-solving abilities, and, perhaps most importantly, a
passion for the markets to the table.

Why do DCF projections typically go out between 5 and 10 years?

The ability to predict the future in a reasonable manner determines the length of the forecast period. A tenure of less
than 5 years is frequently deemed insufficiently long. When the time horizon exceeds ten years, it becomes
increasingly difficult to forecast accurately.

Which type of industry you want to cover and why?

I'd like to write about the technology industries, which are the most interesting to me.

What is the major difference between growth and value, also do you want to growth or value investor?

Investment in stocks and stock mutual funds can be divided into two fundamental approaches, or styles: growth and
value. Growth investors look for companies that have strong earnings growth potential, whereas value investors look
for stocks that appear to be undervalued in the current market.

I intend to be a value investor because I believe that, as a framework, value is significantly more adaptable in some
ways (if we define value as buying things the market has undervalued).

What are the Pros and cons of using the Price-Earnings Ratio (P/E)?

Pros:

Appealing statistic that relates the amount paid to what was earned

Easy to use and widely available

A proxy for a variety of other firm characteristics, such as risk and growth.

Cons:

Accounting earnings are used.

Earnings are reported at different times throughout the business cycle.

Does not take into account the firm's risk or growth

Suppose oil price change 20% down how it will affect economy?

Low oil prices have a negative impact on the oil and gas industry, but have a positive impact on the auto and plastics
industries, among other industries. When it comes to the overall economy, one offsets the other, but the regional
effects are magnified in the "oil patch," as it is commonly referred to.

Just imagine your siblings hold and any IT companies stock and they tell you they will sell stock right now then
how you will react?

I will suggest that if he makes a good profit from there, he should sell it, and if he sees any long-term growth in that
stock, he should hold onto it for the foreseeable future. My siblings, on the other hand, will make the final decision.

If a Firm has a higher Price-Earnings (PE) ratio than another company in same sector, what could be possibilities?
It means that investors are willing to pay more for a piece of a company's earnings than they are willing to pay for the
other pieces of earnings when a company's PE ratio is higher than the industry average. Now, there are a variety of
reasons why they are willing to pay more—it could be simply because of the hype, or it could be because the
company has extremely promising growth prospects.

If a firm has a Lower Price-Earnings ratio than another company in same sector, what could be possibilities?

If a company's PE ratio is lower than the average for its industry, it indicates that the company may be carrying more
debt on its books than its peers, or that the company may be losing market share, or that the company may be
experiencing lower profit margins than its peers, or that the company may be experiencing governance issues within
the management.

Explain me how you use Sensitivity Analysis in Excel?

make use of base case assumptions for growth rates, WACC, and other inputs, which result in a base valuation for the
company.

The preparation of a sensitivity table is required in order to provide clients with a better understanding of the
assumptions and their impact on valuations.

Sensitivity analysis is commonly used to determine the impact of changes in the WACC and the company's growth
rate on the stock price.

What is the major ratio use for any company to analyze?

The major ratio use Quick ratio, Debt to equity ratio, Working capital ratio, Price to earnings ratio, Earnings per share,
Return on equity ratio, Profit margin etc.

Tell me which are the most common valuation ratios used to analyze any stock?

Most common is valuation ratios used to analyze any stock

Enterprise Value (EV)/EBITDA

EV/Sales

EV/EBIT

Price to Earnings (P/E)

Price to Book Value (P/BV)

Explain me which are the most common multiples we use in valuation?

Most common multiples use in valuation are

EV/Sales

EV/EBITDA

EV/EBIT

PE ratio

PEG Ratio

P/CF ratio

P/BV ratio

EV/Assets

Explain me how you calculate the Weighted Average Cost of Capital?

WACC = Cost of Equity Weight of Equity + Cost of Debt (1 - Tax Rate) Weight of Debt + Cost of Preferred Weight of
Preferred

Cost of Equity is calculated using CAPM

Cost of Debt and Preferred are usually estimated by looking at comparable companies /debt issuance and interest
rates and yields of similar companies

How you do a Discounted Cash Flow analysis in Equity Research?

The process begins with the creation of historical financial statements for the company in standard format

Three statements should be projected using a step-by-step financial modelling technique.

Other schedules, such as a debt and interest schedule, a plant and machinery and depreciation schedule, a working
capital schedule, a shareholders equity schedule, an intangible and amortization schedule, and so on, support the
three statements.

Once the forecast has been completed, you can move on to the valuation of the company using the DCF approach.

With DCF, you must calculate free cash flow to the firm or free cash flow to equity, and then find the present value of
these cash flows in order to determine the fair value of the stock (also known as discounted cash flow).

What is Free Cash Flow to Firm and how you will value?

A surplus of cash that remains after taking into account working capital requirements, as well as the costs of
maintaining and renewing fixed assets The debt holders and the equity holders benefit from the company's free cash
flow.

FCFF = EBIT x (1-tax rate) + non cash charges + changes in working capital - capital expenditure

What is Financial Modeling and how it is useful in Equity Research?

Financial modelling is a method of projecting a company's financials in a very organized manner. Because companies
only provide historical financial statements, a model can assist in understanding the company's fundamentals - ratios,
debt, earnings per share, and other parameters.

Using financial modelling, you can predict how a company's balance sheet, cash flow statement, and income
statement will look in future years.

Explain me the concept of Trailing PE and Forward PE?

The trailing PE ratio is calculated using earnings per share from the previous period, whereas the forward PE ratio is
calculated using earnings per share from the forecast period.