FUNDAMENTAL RESEARCH ANALYST

Course Objective:- This course is designed in such a way that any non-finance student can understand the concept of long-term and short-term investment using fundamental analysis, able to evaluate a stocks intrinsic value examining the various economical, political, financial, qualitative and quantitative factors. We are also covering the NISM Research analyst module in this course so that student can apply for the certification and get a good job in the industry. Importance of Fundamental Analysis:- Either we are trading for medium term (several months) or long-term (several years) we must have good understanding of company’s fundamental. We should know the business, product and services they offer, quality of management, profitability of a company etc. to make a financial decision. By applying fundamental analysis you got to know about the valuation of the company whether it is undervalued or overvalued.

what will you learn
  • CHAPTER 1 INTRODUCTION TO RESEARCH ANALYST PROFESSION

    Primary Role of a Research Analyst    
               
    Primary Responsibilities of a Research Analyst  
    Basic Principles of Interaction with Companies / Clients
               
    Important Qualities of a Research Analyst  

  • CHAPTER 2 INTRODUCTION TO SECURITIES MARKET

    Introduction to Securities and Securities Market  
               
    Product Definitions / Terminology    
               
    Structure of Securities Market    
               
    Various Market Participants and Their Activities  
               
    Kinds of Transactions      
               
    Dematerialization and Rematerialization of securities

  • CHAPTER 3 TERMINOLOGY IN EQUITY AND DEBT MARKETS

    Terminology in Equity Market
         
    Terminology in Debt Market
         
    Types of Bonds  

  • CHAPTER 4 FUNDAMENTALS OF RESEARCH

    What is Investing?     
           
    Research on Businesses or Stocks
           
    Fundamental Analysis  
           
    Technical Analysis    
           
    Behavioral Finance    
           

  • CHAPTER 5 ECONOMIC ANALYSIS

    Basic Principles of Microeconomics    
               
    Basic Principles of Macroeconomics    
               
    Introduction to Various Macroeconomic Variables
               
    Sources of Information for Economic Analysis  

  • CHAPTER 6 INDUSTRY ANALYSIS

    Michael Porter’s Five Force Model for Industry Analysis      
                     
                     
                     
    Boston Consulting Group (BCG) Analysis        
                     
    Structure Conduct Performance (SCP) Analysis:         
                   
     
       
     
    Key Industry Drivers            
                     
    Regulatory environment/framework          
                     
    Sources of information for industry analysis        
                     

  • CHAPTER 7 COMPANY ANALYSIS QUALITATIVE DIMENSIONS

    Understand Business and Business Models:       
                   
    Competitive Advantages/Points of differentiation over the Competitors
                   
    Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis  
                   
    Quality of Management (Including Independent Directors) and Governance
                   
    Pricing Power and Sustainability of This Power      
                   
    Organization Structure          
                   
    Critical Business Drivers/Success Factors      
                   
    Risks in the Business          
                   
    Compliance Orientation of the Company      
                   
    Documentation on Guidance v/s Actuals      
                   
    Sources of Information for Analysis        

  • CHAPTER 8 COMPANY ANALYSIS

    History of Business vs. Future of Business    
                 
    Basics of Profit and Loss Account (P/L)     
                 
    Basics of Balance Sheet (B/S)       
                 
    Basics of Cash Flows        
                 
    Contingent Liabilities        
                 
    Basics of Taxation Affecting To Companies    
                 
    Important Points to Keep In Mind While Looking At Financials
                 
    Quality of Business in the Past through Quantitative Lenses
                 
    Peeping in to future with caution      
                 
    Peer Comparison          
                 
    History of Equity Expansion        
                 
    Dividend and Earnings History      
                 
    History of Corporate Actions        
                 
    Ownership and Insiders’ Sales and Purchase of Stocks in The Past

  • CHAPTER 9 CORPORATE ACTIONS

    Philosophy of Corporate Actions

  • CHAPTER 10 VALUATION PRINCIPLES

    Difference Between Price and Value      
                 
    Why Valuations are required        
                 
    Sources of Value in a Business – Earnings and Assets  
                 
    Discounted Cash Flows Model for Business Valuation  
                 
    Absolute Valuations vs. Price-Value Sense    
                 
    Earnings Based Valuation Matrices      
                 
    Assets based Valuation Matrices      
                 
    Relative Valuations - Trading and Transaction Multiples  
                 
    Sum-Of-The-Parts (SOTP) Valuation      
                 
    Other Valuation Parameters in New Age Economy and Businesses
                 
    Capital Asset Pricing Model        
                 
    Objectivity of Valuations        
                 
    Some Important Considerations in the Context of Business Valuation

  • CHAPTER 11 FUNDAMENTALS OF RISK AND RETURN

    Concept of Return of Investment and Return on Investment
                 
    Calculation of Simple, Annualized and Compounded Returns
                 
    Risks in Investments        
                 
    Concepts of Market Risk (Beta)      
                 
    Sensitivity Analysis to Assumptions      
                 
    Concept of Margin of Safety        
                 
    Comparison of Equity Returns with Bond Returns    
                 
    Basic Behavioral Biases Influencing Investments    
                 
    Some Pearls of Wisdom from Investment Gurus across the World

  • CHAPTER 12 QUALITIES OF A GOOD RESEARCH REPORT

    Qualities of a Good Research Report    
               
    Checklist Based Approach to the Research Reports
               
    A Sample Checklist for Investment Research Reports

  • CHAPTER 13 LEGAL AND REGULATORY ENVIRONMENT

    Regulatory infrastructure in Financial Markets  
               
    Important regulations in Indian Securities Market
               
    Code of Conduct/Ethics for Research Analysts  
               
    Disclosure Requirements for Research Analysts  

Lessons Will You Learn

  • 13 lessons
Primary Role of a Research Analyst    
           
Primary Responsibilities of a Research Analyst  
Basic Principles of Interaction with Companies / Clients
           
Important Qualities of a Research Analyst  
Introduction to Securities and Securities Market  
           
Product Definitions / Terminology    
           
Structure of Securities Market    
           
Various Market Participants and Their Activities  
           
Kinds of Transactions      
           
Dematerialization and Rematerialization of securities
Terminology in Equity Market
     
Terminology in Debt Market
     
Types of Bonds  
What is Investing?     
       
Research on Businesses or Stocks
       
Fundamental Analysis  
       
Technical Analysis    
       
Behavioral Finance    
       
Basic Principles of Microeconomics    
           
Basic Principles of Macroeconomics    
           
Introduction to Various Macroeconomic Variables
           
Sources of Information for Economic Analysis  
Michael Porter’s Five Force Model for Industry Analysis      
                 
                 
                 
Boston Consulting Group (BCG) Analysis        
                 
Structure Conduct Performance (SCP) Analysis:         
               
 
   
 
Key Industry Drivers            
                 
Regulatory environment/framework          
                 
Sources of information for industry analysis        
                 
Understand Business and Business Models:       
               
Competitive Advantages/Points of differentiation over the Competitors
               
Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis  
               
Quality of Management (Including Independent Directors) and Governance
               
Pricing Power and Sustainability of This Power      
               
Organization Structure          
               
Critical Business Drivers/Success Factors      
               
Risks in the Business          
               
Compliance Orientation of the Company      
               
Documentation on Guidance v/s Actuals      
               
Sources of Information for Analysis        
History of Business vs. Future of Business    
             
Basics of Profit and Loss Account (P/L)     
             
Basics of Balance Sheet (B/S)       
             
Basics of Cash Flows        
             
Contingent Liabilities        
             
Basics of Taxation Affecting To Companies    
             
Important Points to Keep In Mind While Looking At Financials
             
Quality of Business in the Past through Quantitative Lenses
             
Peeping in to future with caution      
             
Peer Comparison          
             
History of Equity Expansion        
             
Dividend and Earnings History      
             
History of Corporate Actions        
             
Ownership and Insiders’ Sales and Purchase of Stocks in The Past
Philosophy of Corporate Actions
Difference Between Price and Value      
             
Why Valuations are required        
             
Sources of Value in a Business – Earnings and Assets  
             
Discounted Cash Flows Model for Business Valuation  
             
Absolute Valuations vs. Price-Value Sense    
             
Earnings Based Valuation Matrices      
             
Assets based Valuation Matrices      
             
Relative Valuations - Trading and Transaction Multiples  
             
Sum-Of-The-Parts (SOTP) Valuation      
             
Other Valuation Parameters in New Age Economy and Businesses
             
Capital Asset Pricing Model        
             
Objectivity of Valuations        
             
Some Important Considerations in the Context of Business Valuation
Concept of Return of Investment and Return on Investment
             
Calculation of Simple, Annualized and Compounded Returns
             
Risks in Investments        
             
Concepts of Market Risk (Beta)      
             
Sensitivity Analysis to Assumptions      
             
Concept of Margin of Safety        
             
Comparison of Equity Returns with Bond Returns    
             
Basic Behavioral Biases Influencing Investments    
             
Some Pearls of Wisdom from Investment Gurus across the World
Qualities of a Good Research Report    
           
Checklist Based Approach to the Research Reports
           
A Sample Checklist for Investment Research Reports
Regulatory infrastructure in Financial Markets  
           
Important regulations in Indian Securities Market
           
Code of Conduct/Ethics for Research Analysts  
           
Disclosure Requirements for Research Analysts