Course Outline

Chapter

Topics

Recommended
Study
Time(Hours)

Overview: What is equity research? Goal of an equity research

analyst.
Market Participants: The research providers and the research
users.
Types of Research: Buy side research and Sell side research.
Equity Research - An
Introduction

Role of an Analyst: How do analysts go about research?, Front end

and back end research, equity research as a cost and revenue

center.
Concept of Alpha: Importance of alpha in equity research.
Key Terms used in Equity Markets, Stocks Classification.

Annual Report Overview: Understanding key sections of an Annual

Understanding
Financial Statements

report.
4
Profit & Loss Statement, Balance Sheet, Cash Flow Statement.

Introduction: Stages of the qualitative analysis process - EIC

framework.
Economic Cycles: How valuation of a company gets affected by
economic activities?
Analysis of the
Economy

Key Economic Factors: GDP, Industrial Production, Inflation,

Unemployment, Business and consumer confidence and Oil prices.

Stock Indices: Different benchmark indices across the globe, How
do share prices and stock indices move? How are stock indices
interlinked?

Process: Identifying sub-sectors, Key revenue drivers, Key

concerns.
Analysis of the
Industry

Specific Industry Analysis: Oil & Gas, IT, Telecom, Banking and
Autos.

2.5

Chapter

Topics

Recommended
Study
Time(Hours)

Process: Analyzing the business, Revenue drivers, competitors,

Analysis of the
Company

Management team.
1.5
Case Study: A detailed analysis of Shiv Vani Industries.

Profitability Ratios: Profit Margins - Gross margin, EBITDA margin,

Net Profit margin.
Return Ratios: Return on Equity (ROE), Return on Common Equity
(ROCE), Return on Total Capital (RTC) and Return on Assets
(ROA).
Liquidity Ratios: Current ratio, Quick ratio and Cash ratio.
Activity Ratios: Account receivables turnover & Days of
Ratio Analysis

receivables, Inventory turnover & Days of inventory, Account

4.5

payables turnover & Days of payables.

Solvency Ratios: Debt-to-Equity ratio, Interest coverage ratio and
Financial leverage.
Valuation Ratios: Price to Earnings (P/E) ratio, P/E re-rating and
de-rating, PEG ratio, EV/EBITDA, Price to Book Value (P/BV) ratio.
Case Study: Pantaloons vs. Titan Industries.

Concept: Definition and need for Valuations.

Methods: DCF, Relative Valuation.
Valuation

6
Case Study: A detailed exercise of valuation using DCF for Titan
Industries.

Report Writing

Types of reports, Format,Dos and Dontss of report writing.

TOTAL RECOMMENDED LEARNING HOURS

3
25.5