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 70 · filtered from 100Clear filters
  1. 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
  2. 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
  3. 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
  4. 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
  5. 021Hemvara Utilities pays out 90% of its profit as dividends while free cash flow is only 70% of profit. How is the gap funded, and is the dividend safe?Capital allocation and corporate actionsWarm upLong-only asset managementIndian brokerage research
  6. 023Veltrona Textiles grows revenue from Rs 2,000 crore to Rs 2,400 crore with debtor days of 70, inventory days of 90 and payable days of 60. How much extra working capital does the growth need?Forecasting and modellingWarm upSell-side equity researchResearch KPO and GCC
  7. 024Sudhira Home Care raises prices 6%, volumes fall 2%, and gross margin moves from 45% to about 48%. What are revenue growth and gross profit growth?Sector economicsWarm upSell-side equity researchIndian brokerage research
  8. 027Zentara Chemicals' EBITDA fell from Rs 400 crore to Rs 310 crore. Build the bridge from price, volume, raw material, currency and other items, and judge which parts are temporary.Earnings and resultsHardSell-side equity researchBuy-side equity research
  9. 028Case study, then a debrief with the portfolio manager: Telvarra Telecom raises tariffs 15% and expects to lose 3% of subscribers. Model the effect on revenue and EBITDA, and defend it.Forecasting and modellingHardHedge fund long/shortMulti-manager pod
  10. 029A junior's DCF of Pravolt Batteries puts over 90% of value in the terminal value, which implies an exit multiple of 28x EBITDA against peers at 14x. What is wrong, and how do you fix it?DCF and intrinsic valueCoreSell-side equity researchBuy-side equity research

Company names and figures are illustrative.