By Qualification an Indian Chartered Accountant and currently pursuing CFA (AIMR)
More than 4 yrs of experience as fundamental buy-side senior equity research analyst for an US Hedge Fund.
Detailed Service Description-
Capital Market :
Stock Screening -
- Corporate Action Screening like Spin-off, Divestiture, Recapitalization, Bankruptcy (Chapter11), Stock Buyback, Special Dividend, Rights Offering etc
- Standard Out of Favor Stock Screening like 52 week lows, Plungers, High Dividend Yield etc.
- Screening for Insider Trading
- Idea Generation Screens like
• Valuation Screening using ratios like ev/ebit, p/e, Discount to NAV etc,
• Balance Sheet Screening like P/TBV(Tangible Book Value), P/NN (Net Net working capital) etc,
• Income Statement Screening like Operating Margin Growth etc and
• Cash Flow Screening like 3 yrs positive FCF , Dividend Growth, Capex/D&A, Buyback etc.
• Combination of above like historical organic revenue Growth > historical Capex Growth etc
• Bonds Screening like Investment grade bond yield, junk bonds yield etc.
- Custom Screening as per user requirement
Investment Research -
1. In depth fundamental analysis & research-
a) Financial Modeling -
• Running normalized earnings & valuation like P/E, Ev/Ebit. Ev/Ebitda-Capex etc
• Historical Free Cash Flow Valuation & Capital Allocation Analysis (hist Capex/D&A, acquisitions, debt pay down, dividend, buyback etc)
• Historical Performance & Valuation Analysis. Understanding average performance & valuation over a business cycle.
• Relative Current & Historical Valuation & Analysis and comparison with Subject Company.
• DCF Valuation, Private Market Valuation, Liquidation Valuation.
• Laying out Projections & valuation, SOTP Valuation and Target Price using best case and worst case scenario numbers.
b) Research -
• Company Research, Product Research, Industry Research and Economy Research (Currency, Stability etc) and understanding company, industry and economy risk to understand Business strength i.e. competitive advantage, pricing power, economic moat, market share etc
• Management Research, Management Shareholding & stock options outstanding, recent insider trading activities. Management Variable Compensation Analysis (whether stock Price based or economic value added (EVA) based compensation system which is tied to return on capital employed (ROCE), cash flow etc.). The key is to find out what the interest of insiders is and whether management is acting steward to shareholders.
c) Identifying potential short (hedging/Long Short/Pair Trade) in some cases.
Accounting, Book Keeping, Financial Reporting (US GAAP. IFRS):
- Journal Entries
- Ledger Account Maintenance
- Trail Balance
- P&L Preparation
- Balance Sheet Preparation
- BRS
