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I. Introduction to Research Analyst Profession

A. Understand the Primary role of a Research Analyst

B. Know the Primary responsibilities of a Research Analyst

C. Know the Basic principles of interaction with Companies / Clients

D. Understand the Important qualities of a Research Analyst

II. Introduction to Securities Market

A. Know about “Securities” and “Securities Market”

B. Understand Product Definitions / Terminology

C. Know the Structure of Securities Market

D. Know Various market participants and their activities

E. Learn about the Kinds of transactions

F. Know about Dematerialization and Rematerialization of securities

III. Terminology in Equity and Debt Markets

A. Know about the Terminology in Equity Market

B. Know about the Terminology in Debt Market

C. Understand the Types of Bonds

IV. Fundamentals of Research

A. Learn about investing

B. Understand the Research on businesses or stocks

C. Understand Fundamental Analysis - Top down approach and Bottom up approach

D. Understand Technical Analysis

E. Know about Behavioral Finance

V. Economic Analysis

A. Understand the basic principles of microeconomics

B. Know the basic principles of macroeconomics

C. Know the Introduction to various macroeconomic variables

D. Know about the Sources of information for economic analysis

VI. Industry Analysis

A. Understand Dr. Michael Porter’s five force model for industry analysis

B. Understand Political, Economic, Socio-cultural, Technological, Legal and Environmental (PESTLE) Analysis

C. Understand Boston Consulting Group (BCG) Analysis

D. Understand Structure Conduct Performance (SCP) Analysis

E. Know the Key Industry Drivers

F. Understand the Regulatory environment/framework

G. Know about the Sources of information for industry analysis

VII. Company Analysis – Qualitative Dimensions

A. Understand Business and Business Models

B. Know the Competitive Advantages/Points of differentiation over the competitors

C. Understand Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

D. Know about Quality of management (including independent directors) and governance

E. Understand Pricing power and sustainability of this power

F. Know about the Organization structure

G. Understand Critical business drivers/success factors

H. Know about the Risks in the business

I. Understand Compliance orientation of the company

J. Know about the Documentation on Guidance v/s Actuals

K. Know about the Sources of information for analysis

VIII. Company Analysis – Quantitative Dimensions

A. Know the History of Business Vs. Future of Business

B. Understand the Basics of Profit and Loss Account (P/L)

C. Understand the Basics of Balance Sheet (B/S)

D. Understand the Basics of Cash Flows

E. Know about the Contingent Liabilities, Off-balance sheet items, Accounting Policies, Notes to Accounts

F. Know the Basics of Taxation affecting to Companies

G. Know about the Important points to keep in mind while looking at financials

H. Know about the Quality of business in the past through quantitative lenses

I. Peeping in to future with caution

J. Understand Peer Comparison

K. Know the History of Equity expansion

L. Understand about Dividend and earnings history

M. Know the History of corporate actions

N. Know the Ownership and Insiders’ Sales and Purchase of stocks in the past

IX. Corporate Actions

A. Understand the philosophy of corporate actions

X. Valuation Principles

A. Know the difference between Price and Value

B. Understand why Valuations are required

C. Know the Sources of Value in a Business – Earnings and Assets

D. Learn about the Discounted Cash Flows model for Business Valuation

E. Learn about Absolute Valuations vs. Price-Value sense

F. Know the Earnings based Valuation Matrices

G. Know the Assets based Valuation Matrices

H. Understand the Relative Valuations - Trading Multiples and Transaction Multiples

I. Know the Sum-Of-The-Parts (SOTP) Valuation

J. Know the other Valuation Parameters in new age economy and businesses

K. Understand the Capital Asset Pricing Model

L. Understand the Objectivity of Valuations

M. Know some important considerations in the context of Business Valuation

XI. Fundamentals of Risk and Return

A. Understand the Concept of return of investment and return on investment

B. Know the Calculation of simple, annualized and compounded returns

C. Learn about the Risks in investments

D. Know the Concepts of market risk (Beta)

E. Understand Sensitivity analysis to assumptions

F. Know the Concept of Margin of Safety

G. Know the Comparison of equity returns with bond returns

H. Know the Basic Behavioral Biases influencing investments

I. Know about some pearls of wisdom from Investment Gurus across the world

XII. Qualities of a good Research Report

A. Learn about the Qualities of a good Research Report

B. Know about the Checklist based approach to the Research Reports

C. Know about the sample checklist for Investment Research Reports

XIII. Legal and Regulatory Environment

A. Understand the Regulatory infrastructure in Financial Markets s

B. Understand the Important regulations in Indian Securities Market

C. Know the Code of Conduct/Ethics for Research Analysts

D. Know the Disclosure Requirements for Research Analysts

Annexure:

A. Case Studies (Some cases from history on market events)

B. Suggested Readings

C. Reference websites

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