Industry Research Template Two Wheelers

This template is a tool to help you assess an industry in detail.
Most often, while analysing an industry, we get stuck in term

understand what data needs to be found. This template tries to solve that problem.
Any financial research, or research for that matter, is a series of questions. A good researcher should be able to ask the right s
would automatically follow. This template tries to build a question framework, which can be used and mastered over a period o
do.
Try and find answers to the first set of questions, and then move to the next set. As your keep answering all these, you will
understanding of the industry and its companies would improve considerably.
Try it out, and spend a couple of hours on this. Maybe form a group, and then do it. It should be fun. Needless to say, if you ge
with us. Thanks.
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ndustry, we get stuck in terms of not being able to
solve that problem.
uld be able to ask the right set of questions. Answers

nd mastered over a period of time on all research you
nswering all these, you will soon realize that your

ve considerably.
n. Needless to say, if you get stuck anywhere, connect

Summary
Company 1 Company 2 Company 3
Two wheeler Segments
(< 100 CC, > 100 but <250 CC etc)
Production Capacity
Sales Figures
Per Bike Realization
Monthly Sales (exact if possible, to see the trend)
Market Share in India

GDP/Capita vs Avg Bike/Households Comparison
Bike Price as a % of Disposable Income
Kind of Bike (Cruizer, Chopper etc.)
Bike Recall Incidents, if any

Workforce
Concentration of Bike Purchase

Bike Usage
Growth Rate of Last 5 Years in

Sales
Profit
Bike Numbers
Debt
Profit Margin
Asset Turnover
Capex/Revenue
Export % of Sales
Export to Countries
% Increase in Exports
Bike Utility (used per year KMs)

Bike Life in Years
Cost Structure
Raw Material
Salary
Advertising
Interest
Currency Hedging Cost
R&D
Imapct due to EMIs

Bikes purchased through EMIs
% Increase and Trend
Bikes purchased through Payment at one go
% Increase and Trend
Replacement or Higher Category Impact

Bikes Replaced and Bought Higher Category ones
% Increase
Comparison with Per Capita Increase
Government Schemes Impact

MSP (minimum sales price of crops) Impact
MNREGA or Minimum Wage Impact
Urbanization Impact
Taxation Impact
Company Details
New Products to be Launched
Success Rate
Cannibalization of Old Moter %age
Sales Forecast of New Model
Capex Requirment, if any for New Model
Dealers
Dealership Network
Dealership Benefits provided (margins etc.)
Market Analysis
Gulf
South East Asia
Asia Pacific
Eurasia
North America
Africa
Impact through New Industires

Ride Sharing Offerings through 2W (like South East Asia)
Delivery App / Logistics Requirements
Impact through EV
Valuation Parameters for Consideration

Capacity Growth
Bike Realization (per bike price)
Load Factor (Utilization)
Margin Improvement, if any
Export Growth
Contact +91 91373 14913
Questions to be answered
1. Who are the major players?
2. Do you have the company and financial details about major players?
3. Is there any market regulator overseeing the business?
4. Do you know what kind of products companies in this industry offer?
5. How do they make money?
6. What do you think will be major costs for this industry?
Contact +91 91373 14913
1. In India, how big is this industry?
2. Globally, how big is the industry?
3. Contribution of this sector to GDP in India vis-à-vis other countries?
4. People employed?
5. What is so different in India compared to world in numbers? (any metric suggests that)
6. Can you reach to potential growth in India?
7. Rationale for growth?
Contact +91 91373 14913
1. What is the sales number of each major company?
2. What is the profit number of each major company?
3. What is the debt number of each major company?
4. What is the sales number growth of each major company?
5. What is the profit number growth of each major company?
6. What is the debt number growth of each major company?
Contact +91 91373 14913
1. Where is the sales coming from for each company?
2. Various cost contribution to sales for each company?
3. Profit margin for each sales generating segment?
4. Companre sales and cost for each company and identify trend
Contact +91 91373 14913
1. What are the variables for sales?
2. What are the variables for cost?
3. Is business regulated? If yes, then the major policy effects?
Contact +91 91373 14913
1. Calculate major ratios?
2. Identify trend?
3. Competition analysis from outside the Industry (example: for Airline it is Railways)
Contact +91 91373 14913
1. Calculate major ratios?
2. Identify trend?
3. Share of Other Income in Total Sales?
4. Interest Cost as a % of Operating Profit?
5. Other Income is recurring or one time?
6. Why interest cost is high?
7. Why debt is high?
Reason for Ratio movement and link to Business and it's impact on BS and P&L
Contact +91 91373 14913
1. Cash from Operating Activity (CFO)
2. Capex (NFA+WIP change+Dep)
3. Total Debt (D)
4. Cash + Investments (CI +NCI)
5. FCF (Free Cash Flow)
6. Total Div 10 Yrs
7. FCF/CFO
8. SG to Capex
Reasons for each one to go up or down and try to link to Balance Sheet or P&L
Contact +91 91373 14913

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Industry Research Template Two Wheelers

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This template is a tool to help you assess an industry in detail.

Most often, while analysing an industry, we get stuck in term

uld be able to ask the right set of questions. Answers

nswering all these, you will soon realize that your

n. Needless to say, if you get stuck anywhere, connect

Per Bike Realization

Monthly Sales (exact if possible, to see the trend)

Market Share in India

Kind of Bike (Cruizer, Chopper etc.)

Bike Recall Incidents, if any

Concentration of Bike Purchase

Growth Rate of Last 5 Years in

Bike Utility (used per year KMs)

Imapct due to EMIs

Replacement or Higher Category Impact

Government Schemes Impact

Impact through New Industires

Valuation Parameters for Consideration

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