Equity research models; Tata Finance Ltd.

Abstract

The project has been done to develop equity research models based on industry and company studies. The models are expected to serve as a guide to evaluating equities and the likely trends of the concerned industries in future. There are many equity research models in the market, but many of them are not suited to the Indian environment, which has few unique characteristics like the importance of ‘market sentiments’. Besides, government is a very important influencer, and it must be accorded suitable importance. The project suffers from a few limitations as only the fundamental analysis has been used. Technical analysis has not been used, which would have given a better insight of companies, due to lack of time. It is nevertheless expected to provide useful information on the equities covered. The objective of the project is to develop fundamental equity research models which can be used to analyse scrips in the secondary market. The current state of the industries has been analysed and projections made based on the likely trends. Crucial factors which affect the industry have been identified. Any change in these factors must be considered while evaluating a given equity.