Who is Research Analyst & What does he do?

Now as would have noticed stock market provides a medium for business man to raise money for the business. However some might say, why not go to bank or friends & family. Well there are various options available to businessman to finance his venture and one of them is stock market, depending on many factor (to be discussed later on in detail) he choose stock market over others. Similarly many people have spare money and they want to deploy it safety for future needs.

So as such people have lot of options they can keep it cash (in home or bank) or invest in debt i.e. government or company bond where safety of money is guaranteed,  or invest in stock market and others assets (like gold, real estate). However why one chooses stock market over others is simply a case of better return over long term compared to other asset class.

Now if somebody decides to invest in stock market, he would typical go to a stock broker, he is an intermediary between stock market and individual investor. However typical stock market has hundreds of company, so for normal investor it’s difficult to figure which company to buy hence he typically ask broker for recommendation and broker gives the same in return. These recommendations are in turn generated by individual working for broker and they are called Research Analyst.

So Research Analyst is individual that generates stock investment recommendation after undergoing thorough analysis of company by way of Business Model Analysis and Financial Analysis.  Post analysis Research Analyst arrives at fair value of company’s stock price and accordingly he advises investor whether a particular stock is worthy of investment decision at current price or not.

That’s just one role of RA in the whole stock market that we have described above, there are numerous role and job opportunity available for RA in the industry, that we will check it out in our next posting.

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What is Stock Market

To understand Analyst one needs to know about a place called Stock Market. Everybody has heard of it, but do you know why it exists in first place? to answer this imagine you have an unique business idea of “selling chocolates on cycle”, you think it can be amazing service that people would like to consume and at the same time they would pay for it and you would make handsome profit out of it. But to do all this you need cycle, which in turn needs money which either you don’t have or are running short of it. Let say for simplicity cycle would costs you Rs3000 but you only Rs1500. Now for additional money you can approach general people at large and tell them your unique business and tell them to give you 1500 to start business and they would have equal share in profit. If you closely observe what you have done is sold stake/right in your business, so for this you would have gone to many number of people to convince them about your idea, but what if they all were available to you at single place? That’s called Stock Market.

Now tomorrow let says Mr SRK gives you Rs1500 for your business and you start your business of selling chocolates on cycle, you are happy doing your business. Suddenly one day Mr SRK comes to you and tells you he needs his money back due to some emergency, what do you do? Either you pay him off provided you have money or you say sorry I can’t as money is inside the business and it needs it to run it. In that case what does Mr SRK do? Well what if can find people who would be interested in such deals, as they have enough money to deploy, they can give money to SRK and in turn take his 50% right to profit of your business. So what if a place was available where people like SRK would come and display their products (stake/share in business) and who so ever is interested can buy it, of course on negotiated pricing, that’s why we have a place called “Stock Market”

In short Stock Market is the place where businessmen who need money to do business come or a person who wants to invest in business come. Stock Market is the place where Businesses gets traded. Now if look closely there is chance that your idea of selling chocolates on cycle may not work and business might be failure and it may go into loss. Now if you are doing business profit & loss are part of it, so you did have to accept it, same goes for Mr SRK who gave you money, when he gave you Rs1500 for right to 50% of your business/profit, he also took equal responsibility if your business posted losses. So there is risk of business making loss and at the same time there is chance of business making huge profit, same applies for the person who buys 50% stake in your business from Mr SRK. 

Hence Stock Market - Stock Market is the place where businessmen who need money to do business come or a person who wants to invest in business come. - Stock Market is the place where Businesses gets traded- Stock Market is a place to trade risk & reward, if you have money you can buy risk or if you have risk you can sell it and make money.

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About us

About us

Equitorials is a training institute offering various courses on stock market investment for students and investors alike based on fundamental approach.

We are offering a course on Investment Analysis or simply speaking, how to do Fundamental Equity Research on listed and un-listed companies, how to identify multi-baggers. Within the broader area of Equity Research, we would spend a lot of time analyzing Business Models, developing extensive Financial Models and application of various Valuations tools to arrive at fair value of the company. We will analyze a number of industries and companies through the duration of the course. As a part of the course, trainees will prepare a full-fledged Research Report on a company under the guidance of our Sector Analyst. 

Our approach will not be class room intensive; all of the learning will be practical and project based. Field research will be a crucial part of research. Meetings with the promoters, suppliers, customers are important touch points in doing quality research. To supplement this hands-on research, a lot of reading material will be provided. 

Key course content 
• Industry analysis
• Company analysis
• Financial analysis & Excel modelling
• Valuation key techniques, applications & excel valuation modelling
• Research report writing
• Market realities – myths & facts, key corporate action to watch out for. 

Broader outlines of course
How to go about understanding industry/sector, company and its financials with help of our proprietary tool “Business Model Analysis” – learn & apply key tools used by professionals to evaluate industry & company. 

Financial analysis & modeling – learn how to forecast revenues of the company, learn how to create financial statements of the company by just understanding business model of the company.

Learn how to arrive at stock target price – learn 3 different approaches to valuation – theoretical, historical & practical. Also excel based modeling approach.

Get access to professional reports & learn how to make the same.

Post training, trainees would prepare research report that would be published under our Brand and that would be circulate amongst the industry through our professional network.

We are strong believer in  long term investment philosophy, the same is extend to our course also, post training trainees don’t part with us but can continue preparing such reports under our guidance and publish it under brand. Every report would carry name and contact details of trainees that prepare report , which would in turn help trainees create brand for themselves.

About Faculities

Faculties of Equitorials are professional who have been working in stock market and have a combined industry experience of 18 years across Equity Research, Advisory and Fund Management. They knowledge spans across sectors & industry ranging from Old to New Economy, Manufacturing to Service, Emerging to Mature, Branded to Commodity. They have research over 500 Companies in their career. Regular investor only ways of making money through buying & selling in market, however our faculties possess insights & experience in area of special situations like Merger, Acquisition & De-Merger, Buy-Back & Open Offer. These are very common events but offers immense opportunity to make money.
Our Faculties strongly follow the above mentioned process in their professional life and have been very successful using it. Knowing and understanding are different things, although people mostly confuse the two. Our job is to make you understand and not to inform or teach you. 

call us on 08898023485 or mail us on equitorials@gmail.com to fix a meeting to get better idea about course, faculty and anything else.

Join us on facebook on “Equitorials” or “Learn the Art of Equity Research” 

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