VCM Research & Deal execution






Break up of research function
Monitoring actual investment and keeping the watch list

CORPORATE NEWS FLOW MARKET CURRENT
Actions on Ground
Management due diligence
Corporate office visit
Plant & Work site visit

Market Survey
Strategy, Customer, Dealers & Employee
Industry sources

Competitor Survey
Strategy, Customer, Dealers & Employee
Desk Research

Estimates & Projection
Sales & Volume
Critical cost component
Critical raw material
Profit
EPS

Follow up with-
Top management
Middle management
Customers & Dealers
Industry sources
Actions on Ground
Analysts meet
Company presentations
Industry Seminars
Trade fairs & Exhibitions

Desk Research
Analysing news from-
News channels
News Papers
News wires
Magazines
Internet

Corporate result analysis

Company conference call

Interviews of management

Views of industry experts
Actions on Ground
Interaction & liaison with-
Peer group investors
Sector Analysts
Fund Houses
Brokerages
Bankers
Credit rating agencies

Desk Research
Setting up benchmarks of-
Valuation criterion
Earning multiples
Re-rating & De-rating

Monitoring price trend

Analysing deal size

Sensing market grapevine

DEAL EXECUTION
BUY
Determining buy quantity
Articulating buying strategy
Fixing price range
Sourcing the lot at discount or premium to ruling price
Accumulation from bourses
Analysing seller’s profile & selling pattern

EXIT PLANNING & REVISION

SELL
Determining sell quantity
No sell price floor unless negotiated deal
Articulating selling strategy
Passing the lot at premium or discount to ruling price
Open market selling on bourses

SEAMLESS CO-ORDINATION WITH BROKERAGES
Tactful dialogue on deal execution
Daily tally of executed deals
Daily tally of unexecuted deals – Analysing reasons thereof
Reworking methodology on unexecuted deals
Tally funds and stocks on each settlement