This article outlines key responsibilities and skills for financial modeling and equity research roles focused on listed Indian companies. It covers building financial models using DCF and Relative Valuation methods, industry and market trend analysis, equity research report preparation, model updates, MIS generation, budgeting and forecasting, and the essential technical competencies and financial metrics required to assess company health effectively.
Core Financial Modeling & Valuation
This section focuses on the modeling and valuation tasks essential for evaluating listed Indian companies. Key activities include building and maintaining financial models and applying valuation frameworks to derive actionable conclusions:
- Model construction: Building financial models on listed Indian companies using DCF and Relative Valuation methods, with attention to inputs that drive valuation outputs.
- Valuation techniques: Applying Discounted Cash Flows, DCF Valuation and Comparative valuation approaches; integrating concepts such as FCFF, FCFE and levered cash flows where relevant.
- Corporate finance concepts: Incorporating frameworks like Leverage Buyout, M&A analysis and other corporate finance considerations into model scenarios and sensitivity checks.
- Model upkeep and forecasts: Regularly updating models, generating Management Information Systems (MIS), and preparing budgets and forecasts to reflect latest assumptions and market developments.
- Interconnections: Ensuring model outputs feed directly into budgeting & forecasting, MIS and equity research reports to maintain consistency across deliverables.
Research, Analysis, Reporting & Tools
This section details the research, analytical and reporting responsibilities, along with the technical skills required to present findings clearly and professionally.
- Industry and market study: Studying industry and market trends to contextualize company performance and valuation assumptions.
- Financial metrics analysis: Understanding key financial metrics — revenue trends, profit margins, return on equity and liquidity ratios — to assess a company’s financial health.
- Competitor and SWOT analysis: Researching industries and conducting competitor analysis to identify strengths, weaknesses, opportunities and threats relevant to valuation and strategy.
- Equity research reports: Building equity research reports on several companies, summarizing findings and presenting valuation conclusions and recommendations.
- Reporting & visualization: Summarizing findings in professional reports with charts, tables and data visualizations to support conclusions; ensuring MIS and reports communicate forecasts and budgets clearly.
- Technical competencies: Leveraging advanced Excel, Power BI, cost & management accounting, business strategy and other corporate finance skills to construct robust analyses and visual outputs.
In summary, the role combines technical financial modeling (DCF, Relative Valuation, FCFF, FCFE), corporate finance concepts (Leverage Buyout, M&A), advanced tools (Excel, Power BI) and thorough industry, market and competitor analysis. Deliverables include updated models, MIS, budgets, forecasts and professional equity research reports with charts and tables, enabling accurate valuation and recommendations for listed Indian companies.
