Chapter 11: NISM-XV Exam Prep
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Day 52: NISM-XV Module 3 & 4 — Research Process
Research Analyst kya karta hai — step by step!
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📖 RA Ka Ek Din
Priya ek SEBI registered Research Analyst hai. Subah uthke woh kal raat ki global market news padti hai. Infosys ke quarterly results notice karti hai — numbers ache hain. Company ke competitors analyze karti hai. Phir ek detailed research note likhti hai: "BUY — Target ₹1,800. Risk: US slowdown." Yahi research analyst ka kaam hai! 📋
Priya ek SEBI registered Research Analyst hai. Subah uthke woh kal raat ki global market news padti hai. Infosys ke quarterly results notice karti hai — numbers ache hain. Company ke competitors analyze karti hai. Phir ek detailed research note likhti hai: "BUY — Target ₹1,800. Risk: US slowdown." Yahi research analyst ka kaam hai! 📋
Research Process — Step by Step
Step 1: Universe Selection — Kaun se stocks analyze karein? Sector ke hisaab se shortlist.
Step 2: Industry Analysis — Sector ka future kaisa hai? Competition, regulatory changes, macro trends.
Step 3: Company Analysis — Fundamentals: Revenue, margins, debt, management quality.
Step 4: Valuation — DCF, P/E comparison, EV/EBITDA. Fair value calculate karo.
Step 5: Research Report — Write up with recommendation: BUY/SELL/HOLD, Target Price, Risk factors.
Types of Research Reports
| Report Type | When Published | Content |
|---|---|---|
| Initiating Coverage | First time covering a stock | Detailed 15-30 page analysis |
| Quarterly Update | After Q results | Results analysis, estimate revision |
| Flash Note | Immediate news event | Quick 1-2 page impact analysis |
| Sector Report | Thematic/periodic | Full industry analysis, multiple companies |
| Annual Report Analysis | After annual results | Full year summary + forward outlook |
Discounted Cash Flow (DCF) — Valuation Basics
DCF = Future Cash Flows ka Present Value!
Concept: Kal ka ₹100 aaj ke ₹100 se kam valuable hai (time value of money).
Steps:
1. Company ke next 10 years ke Free Cash Flow estimate karo
2. Discount rate (WACC typically 10-15%) se present value calculate karo
3. Terminal value add karo (10 saal ke baad bhi company exist karegi!)
4. Total = Intrinsic Value!
Agar intrinsic value > current market price → Stock undervalued → BUY!
Concept: Kal ka ₹100 aaj ke ₹100 se kam valuable hai (time value of money).
Steps:
1. Company ke next 10 years ke Free Cash Flow estimate karo
2. Discount rate (WACC typically 10-15%) se present value calculate karo
3. Terminal value add karo (10 saal ke baad bhi company exist karegi!)
4. Total = Intrinsic Value!
Agar intrinsic value > current market price → Stock undervalued → BUY!
Research Report Mein Mandatory Disclosures (SEBI Rule!)
SEBI ke RA regulations ke under, har research report mein yeh hona zaroori hai:
✅ Analyst ka SEBI registration number
✅ Date of research report
✅ Company mein analyst/firm ka financial interest (conflict of interest!)
✅ Rating methodology
✅ Past recommendations performance
✅ Risk factors
Koi bhi ye disclose na kare → SEBI action le sakta hai! Exam mein important!
✅ Analyst ka SEBI registration number
✅ Date of research report
✅ Company mein analyst/firm ka financial interest (conflict of interest!)
✅ Rating methodology
✅ Past recommendations performance
✅ Risk factors
Koi bhi ye disclose na kare → SEBI action le sakta hai! Exam mein important!
🎯 Takeaway:
Research process: Universe → Industry → Company → Valuation → Report. Report types: Initiating coverage, quarterly, flash note. DCF = future cash flows ka present value. Mandatory disclosures: registration number, conflict of interest, risks. Kal — NISM Chapters 5 & 6: Financial Statements!
Research process: Universe → Industry → Company → Valuation → Report. Report types: Initiating coverage, quarterly, flash note. DCF = future cash flows ka present value. Mandatory disclosures: registration number, conflict of interest, risks. Kal — NISM Chapters 5 & 6: Financial Statements!