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Mukesh Patel School of Technology Management and


Work Done in Equity Research


-Suyash Jain
Equity research is one side of the industry, which can change the game of business anytime.
Despite having conflicting views between different brokerage houses, this department
remains the backbone of the company. As it is well known that the Indian Economy is on the
verge of a major infrastructural boom, capital good industry is expected to be the driver for
such growth. The renewable energy generation in India is on a tremendous growth and the
same is expected over next few decades .One of the major requirements for this sector in the
Turbine. Theyre very few players in the industry especially companies manufacturing
turbines with output more than this light there is one company which has taken
more than 60% market share in India in the past one decade. With its humble start from, it got
separated as an independent entity from Triveni Engineering Group in 2010.This entity stood
by the mane of Triveni Turbines Ltd became a game changer and formed a JV with e
Electricals (GE) and this subsidiary came to be known as GE-Triveni. The discounted cash
flow analysis would bring about the fair value of the company and would take into
consideration of the future and present status of the company. Triveni enjoys a strong moat in
the 0-30MW.
For the turbine company the equity research model was prepared based on the basis of macro
parameters. Various parameters were considered that could impact on the growth of the
capital good company. Some of them were:
1. Launch of Capital Goods Act in India
2. Huge growth in the export related market for capital goods in the International Market.
3. Huge Market share and less dependence on the primary product portfolio.
Any equity research starts with the analysis of the macroeconomic parameters and the outlook
of the sector. There are various methods to analysis the analyse the sector. PESTLE analysis
is one of the methods, where Political, Economic, Technological and various other parameters
are evaluated. The next step would be Analyse the industry. A very simple tool for this
method would be evaluate the Porters Five Forces in the industry.
The final step would be to evaluate the Balance Sheet and Income Statements of the
company, which help to project the cash flows of the company. These cash flows would be
discounted to todays values and projections are made.

These cash flows are used to prepare a discounted cash flow model. These models contain the
free cash flows for some projected years. These cash flows along with terminal value are
discounted to the current date. This price gives the net worth of the company which is later
used to find the intrinsic value of the company .The sensitivity and PE band analysis is done
to portray the price behaviour of the Stock.
The analysis of the sector and the company proves that, TTL could be the next thing in heavy
electrical equipment. There are various retinal for investing the company for a minimum
holding period of one year. The rationales of investing are:
1. Market Leader and Global Market Presence
2. Aftermarket to drive profitability
3. International Presence
4. Widening its Moat in aftermarket service.
However, capital expenditure and forex risk continues to be there with this stock. Still its a
very good avenue for investment.
Kotak securities has provided various opportunities to give me an understanding about the
markets and various aspects associated to the business.
1. Financial Modelling
2. Data Analysis
3. Financial Markets
4. Equity Derivatives

Internship in Nomura- Global Markets

By- Shivangi Jhalani

Project work on Equity Research and Product Management involved extensive research on
two sectors- Indian Media and Japan Pharmaceutical. Also, independently handling a product
as part of American Product Management Team required taking up responsibility and meeting
Research on various sectors, completing various projects under it, helped develop a
fundamental framework of my understanding of the job and service to clients. It enhanced
technical, fundamental as well as practical knowledge in the finance domain. Access to all of
Nomuras Equity Research Reports also greatly developed economic and general knowledge.
Americas Early Bird, a product meant for US clients was delivered daily without fail and
error throughout the internship period, being a role of responsibility it taught me time
management and sticking to schedule.
Briefly, wed go through challenges we faced and my learning I underwent during this
internship period.

Research involves a lot of data sifting which may not always be readily

Getting reliable sources is as much of a task as finding required data.
The databases available have taken up time and effort and need to be constantly

updated and protected.

Extracting meaningful information from data, and identifying redundancies was
one of key learnings.