Equity Research case studies, worked step by step

Cases
100
Traced to a firm
30
Topics
12
Hard
30
Topic
All topicsStock pitch15Earnings and results9Forecasting and modelling10DCF and intrinsic value9Relative valuation7Financials6Sector economics9Forensic accounting9Industry structure and moats7Macro and commodity sensitivity7Capital allocation and corporate actions7Buy-side portfolio judgement5
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 11–20 of 100
  1. 011Serovan Pharma holds Rs 4,000 crore of net cash and trades at 25x earnings. Rank three uses of the cash: a buyback, an acquisition at 15x EBIT of a business earning a 12% return on capital, or a special dividend.Capital allocation and corporate actionsCoreSell-side equity researchBuy-side equity research
  2. 012Merger arbitrage: Kaldrin Power Systems offers Rs 450 cash for Pravena Cables, which trades at Rs 420, with closing expected in six months and a fall-back price of Rs 330 if the deal breaks. What probability is priced in, and is the spread worth it if you think 85%?Buy-side portfolio judgementHardAQR Capital ManagementGreenwich · 2021
  3. 013Stock pitch case study: Halvoren Tiles has revenue of Rs 2,400 crore and a 14% EBITDA margin expected to reach 17% as gas costs fall. The stock trades at Rs 576, 18x next year's EPS of Rs 32. Build the long thesis, the catalyst and the one risk that breaks it.Stock pitchCoreMillennium ManagementNew York · 2024
  4. 014Fenvara Capital Goods has an order book of Rs 12,000 crore, order inflow of Rs 2,100 crore this year against Rs 3,000 crore last year, and revenue of Rs 2,600 crore. What does a book to bill of 0.8 imply for revenue two years out?Earnings and resultsCoreSell-side equity researchIndian brokerage research
  5. 015Run a whitespace analysis for Tamrika Pharmacies: 900 stores in 60 cities, mature cities at one store per 60,000 urban people, and 150 target cities holding 170 million urban people. How many stores can the network hold?Forecasting and modellingCoreViking Global InvestorsNew York · 2024
  6. 016Value Sarthal Power, a regulated utility, with a dividend discount model: dividend just paid Rs 12, growth 5%, cost of equity 11%, allowed return on equity 15.5%, payout 80%. The model says about Rs 210. Is the growth consistent with what the company retains?DCF and intrinsic valueCoreLong-only asset managementIndian brokerage research
  7. 017Compare two sectors through one company each: Medrova Hospitals grows 15% with an 18% return on capital at 55x earnings; Ghatola Cement grows 8% with a 12% return on capital at 30x. Which offers better prospects for the price?Relative valuationCoreWellington ManagementHong Kong · 2022
  8. 018Suvika Renewables owns 2 GW of solar at a 24% plant load factor selling power at Rs 2.6 a unit, which gives revenue of about Rs 1,093 crore. With Rs 7,000 crore of debt at 9%, is debt service covered?Sector economicsCoreSell-side equity researchResearch KPO and GCC
  9. 019Ochrelle Chemicals reports pre-tax profit of Rs 300 crore, of which Rs 90 crore is other income from gains on its treasury portfolio. What are core earnings, and what should each part of the profit be worth?Forensic accountingWarm upSell-side equity researchIndian brokerage research
  10. 020Crude-linked raw materials are 55% of Rangora Paints' cost of goods. Crude rises 20% and price hikes follow one quarter later. What happens to gross margin over the next three quarters?Macro and commodity sensitivityCoreSell-side equity researchIndian brokerage research

Company names and figures are illustrative.