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 1–6 of 6 · filtered from 100Clear filters
  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. 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
  3. 047Pallanza Hospitals raises Rs 1,000 crore through a placement at a 5% discount, adding about 8.8% to its share count, to build three hospitals that break even in year three. When does the deal start adding to EPS?Capital allocation and corporate actionsCoreSell-side equity researchIndian brokerage research
  4. 061Aurevik Foods buys Zestora Naturals, a direct to consumer brand, for 6x sales. Zestora's operating profit is small but growing 30% a year. How many years until the deal earns Aurevik's 12% cost of capital?Capital allocation and corporate actionsHardBuy-side equity researchHedge fund long/short
  5. 086A group is demerging its consumer arm, which peers value at 30x EBITDA, from its chemicals arm, valued at 12x. The group trades at 14x. How much value could the split unlock?Capital allocation and corporate actionsHardSell-side equity researchIndian brokerage research
  6. 097A steel company plans to double capacity for Rs 8,000 crore against a market value of Rs 12,000 crore. The new plant's mid-cycle ROCE is 11% against a 12% cost of capital. Should the market welcome it?Capital allocation and corporate actionsCoreLong-only asset managementSell-side equity research

Company names and figures are illustrative.