Research

Institutional Research

Our research division is engaged in industry and company-specific equity research, with a focus on the midcap segment, even though our broad spectrum of research covers mainstream companies as well. The research division is led by a 15-member core team comprising of experienced analysts who create sustainable, selective and scalable reports for our institutional clients. Various fund managers have accorded a high ranking to our in-depth research insights which have limited coverage in the otherwise conventional market. As of today, we cover 117 stocks in 12 sectors.

Our Research Philosophy

We have always laid thrust on identifying niche businesses through differentiated and value added research. We have proven capabilities in identifying successful midcap stories left in obscurity and companies which are difficult to cover. Quality and scalability of the business of our clients remain our prime concern followed by liquidity. Over the past few years, we have created immense value for our stakeholders by identifying undervalued companies, owing to our fundamental research proficiency. We invest considerable time in carrying out ground-level research and conducting lateral checks apart from understanding the finer nuances of company businesses.

What makes our research methodology and stock selection stand out?

Our stock identification strategy is based on a stringent evaluation process. This includes:

  • Niche undiscovered ideas– relatively obscure stocks or those not being covered regularly on the street.
  • Businesses generating real earnings- operating sustained cash-flows without any compromise
  • Businesses that can bounce back positive free cash-flow from a present crisis. Those with strong possibilities of cash-flow turnaround. Key economic parameters like efficiency of capital, ROE/ROCE assume critical importance in the selection of businesses for our coverage.Businesses with sustainable competitive advantages and leadership positions
  • Growth is not the sole factor for us to own equity in a business. We do not aim to cover astounding stories trading at high multiples.
  • Valuation is the key enabler in deciding our coverage. Several valuation methodologies are evaluated by us, though we may eventually choose only one.

Micro-banking – Sector Report

We initiate coverage on ‘micro-banking’ with Satin Creditcare Network…. Pdf

Study on Corporate Governance & Quality of Earnings – Graphite Electrode

Factors contributing to huge long term wealth creation Corporate governance standards Management pedigree… Pdf

BJAUT vs HMCL – Comparative Study

Factors contributing to huge long-term wealth creation Corporate governance standards Management pedigree Pdf

Non-Ferrous Sector Update

Accelerating supply discipline reiterates our confidence in aluminium price recovery Pdf

Centrum Wealth Research

“…to present the important facts regarding a stock or bond issue, in a manner most informing and useful to an actual or potential owner, and to reach dependable conclusions, based upon the facts and applicable standards, as to the safety and attractiveness of a given security at the current or an assumed price.” Benjamin Graham, David L. Dodd, Security Analysis: Principles and Technique, 1934 At Centrum, we focus on generating investment ideas in the listed equity space. The focus is on the emerging space – companies which have the potential to become the next leaders in their respective domains and at the same time being available at the right valuations. We follow the concept of “GARP” – Growth At A Reasonable Price We strive to provide quality advice on the companies we cover. Our focus is to identify companies with good growth, healthy financials and long term sustainable businesses. At the same time, avoid companies with poor corporate governance/low management quality. We follow the industry best practices in doing our research with detailed financial modelling, management meetings and channel checks to validate our thesis. Our research has been recognised as one of the Best Fundamental Research by Zee Business.

Commodities – Heading Higher?

After weathering a rough storm, the commodity basket has started to move up. The Bloomberg Commodity Index, which was down ~25% in calendar year 2015, has bounced back… Pdf

Corporate India on Sale

Is it the first time or has this been the case earlier as well…Pdf

The Changing Face of DTAA – Impact on Indian Equities

It’s the start of an era. India’s decision to amend a few key clauses in the 3 decades old Double Taxation Avoidance Agreement (DTAA) it had signed with Mauritius… Pdf

Performance of New Equity Issues in FY16

Despite market volatility and a negative return of 9.4% on the S&P BSE Sensex, financial year 2015-16 (FY16) saw good participation in new equity issuances.Pdf