We have formalised our Fundamental Research approach to combine these important aspects:
This brings us the 3R Research Philosophy, which enhances the effectiveness of an investment idea and helps us make right decisions for long-term investments. The 3R Research Philosophy involves the deep analysis of three matrixes: Right sector, Right quality and Right valuation. These form the foundation to generating the Right investment ideas for Sharekhan’s Fundamental Research Team.
Isolating sectors with strong growth prospects from the long-term perspective
Favorable industry structure, big runway for growth, huge opportunity size, high entry barrier and relatively immune to government policies
Management excellence with strong business fundamentals
Sustained competitive advantage; sound business strategy, integrity and transparent management; and portraying great execution through sustained strong financial performance.
Buying good businesses at sensible prices
Using different valuation methods such as PEG, DCF and relative valuation to get sensible values; determining the right time to investment by comparing current valuation to historical PE band / peer valuation
Wide Coverage with Continuous Monitoring
Weeding Out Bad Stocks
Simple and actionable insights