Thursday, March 8, 2012

INDUSTRY ANALYSIS AND VALUATION - FMCG - INDIA

Assignment of Prakash Chaudhury

PGDIM-15, NITIE

2008-2010

 

Material to be posted.
 

AIMR FORMAT

 
Assocation of Investment Management and Research (now CFA institute) gave  the following format some time back for providing industry analysis.
 
 

Industry Classification

Life cycle position

Business cycle

 

External Factors

Technology

Government

Social

Demographic

Foreign

 

Demand Analysis

End users

Real and Nominal Growth

Trends and Cyclical variation around trends

 

Supply Analysis

Degree of Concentration

Ease of entry

Industry capacity

 

Profitability

Supply/Demand Analysis

Cost Factors

Pricing

 

International competition and markets

 
I ask my students to follow the format and prepare the analysis for the following industries as a part of their Investment Analysis or Security Analysis Course.
 
I presented a conference paper and published a journal article on the theme independent equity research from business schools. In that paper I argued that business schools can publish the equity research reports being prepared by their students on their web sites. No doubt disclaimer is there that it is a learning exercise only and not a professional output. The benefit of such academic institute reports will be that they will be more close to rigorous text book methods than the opportunistic reports from sellside companies.
 
I plan to publish the reports of my students on knol demonstrating my commitment to the suggestion that I have made.
http://knol.google.com/k/narayana-rao/industry-analysis-and-valuation-fmcg/ 2utb2lsm2k7a/ 958

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