RCK Data Analytics
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    • Home
    • About Us
    • Services
      • Gen AI Research Solutions
      • Investment Research
      • Investment Banking
      • Private Equity and VC
      • Analytics
      • Market Research
      • Assurance
    • Our Clients
    • Careers
    • Contact us
RCK Data Analytics
  • Home
  • About Us
  • Services
    • Gen AI Research Solutions
    • Investment Research
    • Investment Banking
    • Private Equity and VC
    • Analytics
    • Market Research
    • Assurance
  • Our Clients
  • Careers
  • Contact us

Investment Research

Sustainable investment requires thorough research and analysis which helps investors gain complete knowledge about a company for any purpose. Outsourcing investment research activities to a team of experienced professionals definitely prove beneficial in terms of quality of work as well as costs rather than hiring an in-house team. Sound investment research performed by an expert and professional team helps in outperforming the market using available data.  


What We Do and Whom We Serve


We provide end-to-end financial research services across asset classes. Our specialization is in equity research and investment research support. We serve the requirements of buy-side as well as sell-side firms around the globe through our domain expertise that enables us to be an ‘extended arm’ of our clients. Our clients include asset management companies, investment advisors, broking houses, independent research firms, hedge fund advisors, and investment banks. 

Services, Value Proposition And Coverage

Our Services

  • Equity Research 
  • Company and Industry Research
  • Financial Analysis and Valuation
  • Financial Modeling and Projections
  • Fixed Income/ Credit Research 
  • Hedge Fund Support 

Value Proposition

  • Realistic and actionable insights
  • Multi-domain experience
  • Qualified CFA, MBA and CAs
  • Deep Research & Analytical Tools
  • Flexible and Customized Solutions 
  • Financial Knowledge and Expertise  
  • Trading and Compliance Exposure 

Sector Coverage

  • BFSI
  • Technology
  • Automobile, Oil and Gas 
  • Space and Clean Tech
  • Media and Entertainment
  • Consumer and Retail
  • Healthcare and Hospitality, etc.

Equity Research

High-quality equity research has become more valuable in the constantly evolving market dynamics which affect the research outcomes. Deep-dive equity research helps to fill information gaps and give detailed coverage of the overall market environment, particular sector, or a particular company’s stock. We specialize in providing equity research and investment research support services to buy-side as well as sell-side clients. Our team consists of highly qualified and experienced equity research analysts who serve asset management companies, stock exchanges, investment banks, trading, and brokerage houses. Our services in this domain include:

Industry Research

Understanding the industry and its competitive environment, challenges, regulatory framework, key players, and growth prospects, is vital as the industry is the ultimate environment in which the business grows. Industry trends keep evolving making it necessary to improvise the research methodology over time. Our team of analysts uses a high-quality research methodology and has exposure and knowledge over a wide variety of sectors. This also aids in identifying the key sector trends and preparing comprehensive sector research reports.

Company Research

Drilling down further, after studying the industry, detailed company research help understand the survival probability of the company’s business model and competitive position considering its industry prospects. For detailed company research, we comprehensively study the company’s business model, competitive landscape, management team, financial performance, valuation, investment risks, and future growth drivers and opportunities.

Financial Performance and Evaluation

Analyzing and forecasting a company’s financial performance is not a cakewalk. Selecting and analyzing relevant financial information from a huge pool of available public information and renowned databases requires high-quality skills. Decoding the financials and understanding exactly how the company is performing internally carries the real essence of forecasting future financial performance. The external performance includes performing a short valuation of the company’s business and stock along with a peer company analysis. Our team members have an expertise to use automated renowned databases that enhance the financial evaluation process and results.

Coverage Initiation and Updates

Coverage initiation on a stock helps traders and fund managers study investors’ inclination toward that particular stock. Coverage initiation and its continuous updating will automatically attract more attention resulting in higher trading volumes. We assist sell-side analysts to initiate coverage on listed stocks over all sectors and geographies. We also provide timely updates to these coverages initiated on the portfolio of stocks, to both buy-side as well as sell-side clients.

Articles and Newsletters

To stay up to date with the capital markets, a regular study helps to be on the toes and remain one step ahead. We provide regular services in terms of periodic articles and newsletters that summarize sectors or markets. 

Preparation of Investment Committee Notes - The Investment Committee stands in a requisite position in any company, as they have the huge responsibility of managing the company’s investment portfolio. Regular updates by investment committees help in analyzing the company’s investment strategies. We assist buy-side firms in preparing Investment Committee Notes emphasizing important discussions and decisions taken by the company’s investment committee.    

Financial Analysis And Valuation

Along with financial projections, with strong analytical and research skills, our analysts are also well equipped to develop complex financial models, which synthesize the outlook into numbers and give a clearer picture of expected growth in the company’s future performance. Our experienced team conducts in-depth financial analysis by making use of various tools including, but not limited to, comparable company analysis, discounted cash flow (DCF) models, earnings forecasts, ratio analysis, spreadsheet-based model building and maintenance, quantitative analysis, etc., for research. Our services include:

Intrinsic Valuation

Intrinsic value is a critical component of the assessment of stock for investment purposes. Our expert team has the skills to build from simple to complex financial models, which involve forecasting future cash flows. We use several methods such as Discounted Cash Flow (DCF) in arriving at the intrinsic value of an equity.

Financial Modeling and Projections

Financial Modeling is used in several areas like risk management, valuation of a company, valuation of assets, mergers and acquisitions, budgeting and forecasting, capital allocation, and raising capital. We initiate detailed financial models that involve financial forecasts taking into consideration consensus estimates, relevant growth drivers, risk assumptions, historical financial performance, and projected financial growth. We update the financial models during earning seasons to maintain consistency and increase accuracy over time.

Scenario and Sensitivity Analysis

In this dynamic global macro environment, we understand the importance of conducting scenario and sensitivity analysis, in order to enhance the decision-making process and assessing potential risk. Our financial models provide clear, understandable and detailed scenario as well as sensitivity analysis for formation of better investment decisions.

Support for M&A Activities

Mergers and Acquisitions is a complex process which involves a step-by-step approach from deal initiation to deal execution. Valuation of the target firm is a skillful and complex part as the very base of M&A lies in the acquiring company’s value. Under our financial analysis and valuation services, our experienced team provides services supporting target firm valuation. Along with specializing in the valuation of firms, we also provide support for deal execution. 

IP Valuation

Intellectual Property Valuation plays an important role as Intellectual Property is a very important and major component of the price for selling and purchasing of companies. IPR Valuation is also needed during mergers, acquisitions, solvency transactions, and other finance areas. As IPRs are unique and original to a specific business valuation, valuing them needs a different skill set. Our team possesses high-quality skills and helps clients in arriving at a justified IP valuation.

Fixed Income And Credit Research

Changing capital market dynamics along with higher uncertainties have brought the fixed-income market under the spotlight. Turning to a previously less focused market will require some handholding for newbies. We provide credit research as well as fixed-income solutions to asset management companies, investment advisory firms, brokerage and trading firms as well as hedge funds.

Identifying Investment Opportunities

With our in-depth research capabilities, we seek to identify the best investment opportunities that involve macro and fundamental analysis. Our strategies focus on maximization of total return as well as potential capital appreciation. The investment opportunity set is evaluated using techniques like sovereign analysis, currency as well as interest rate and yield curve analysis, and credit analysis.

Flexible Support

Following an approach of flexible support helps us to reach more clients. In addition to our own strategies, we also provide support for investments in structured finance, leverage finance, US public finance, money markets, and convertibles. We also provide services relating to rating recommendations, covenant analysis, structured credit research, and preparation of investment committee notes.

Support for Cash Flow Models

Cash flow modeling in fixed income is often considered tiresome and difficult. It includes some complex cash flow structures for loans and receivables. Investors struggle to understand the valuation of their portfolios and the impact of changes in the performance of these assets on their portfolios. We strive to make it easier by providing support services to investment bankers and sell-side firms for the preparation of credit reports and cash flow models for investment grade, high yield, and distressed debt which include financial projections, earnings reviews, detailed presentations, and sensitivity as well as scenario analysis.

News Updates and Regulatory Coverage

To execute right investment decisions at right time, it is essential to keep a track on the new developments as well as changes in regulations in fixed income/credit research markets. We prepare periodic summaries of news updates as well as provide insights on various fixed income products and overall macro-economic outlook.

Hedge Fund

An investment in hedge fund helps diversify investment portfolios, manage risk, and produce reliable returns over time. High net worth individuals (HNIs), banks, insurance companies, endowments, and pension funds majorly invest through hedge funds. Hence, the performance of the hedge funds market is an essential component of overall economic development. 

Comprehensive Solutions

Hedge fund advisors and asset management companies deploy higher skills to reduce/remove market exposure and generate good returns despite the market movement. Our analyst team provides end-to-end support solutions to asset management, independent money management companies, and hedge fund advisors from generating investment ideas to compliance and performance monitoring. 

Financial Modeling and Performance Evaluation

Hedge fund financial modeling holds an important place in making the most risk-minimized hedge fund financial investment strategies that have minimum risks with such high-risk investment portfolios. It requires a strong analytical and research skill set. Our services include the preparation of financial models which are created using various techniques such as DCF valuation, relative valuation, and sector-specific valuation along with sensitivity and scenario analysis. For evaluating hedge fund performance, we use performance measures like Beta, Alpha, Sharpe ratio, and Information Ratio. 

News updates and Articles

As hedge funds cater to high net worth and institutional investors, they ought to be tracked for improvisation according to the changing market conditions. We track daily news and updates regarding hedge fund investing and provide informative articles to make better investing decisions.

Compliance

Hedge fund compliance is gaining increasing importance as it has become a crucial component for hedge funds, their service providers, and allocators. We are keen on providing high-quality hedge fund compliance services which are going to play an important role in the hedge fund space. 

Case Study : Deep Insights on Listed Company to Investors

Context

  • Conducting deep-dive research of listed company stocks for providing meaningful insights to retail as well as institutional investors 
  • Presenting the research in the form of a report which includes deep insights, investment thesis, and recommendation regarding investment in the stock. 


Approach 

Our approach included gaining a comprehensive understanding of company through the official company documents which included SEC filings, investor presentations, annual reports, etc. 

We opted using various renowned financial tools for analysis of financial performance to present the same in an interactive manner. Using our sector expertise and research skills, we prepared a full-fledged report which covered company analysis based on all the key parameters as well as stock valuation and recommendation. 


Outcomes   

The following process demonstrates the outcomes of our approach-

  • Summarizing of Investment Rationale for investing in company’s stock including an Overview of the company’s operations which explains business model and products
  • Brief Industry Analysis which includes prevailing Key Industry Trends and Performance 
  • Gathering and filtering relevant data from a variety of data sources and preparing various charts to highlight the company’s financial and operating performance
  • Identification and elaboration of Growth Catalysts along with a study of the company’s Competitive Landscape. 
  • Comparing the Valuation of the company’s stock with peer companies’ stocks to assess the attractiveness of the stock. Also, briefing the Key Risks in making an investment in the company’s stock 
  • Concluding the comprehensive report with suitable Recommendations and an observation-led  Conclusion  

Case Study: Detailed Company Report + IP Valuation

Context

  • A Delaware based client desired to have a detailed Business Valuation report on non-listed cybersecurity technology company based in the US which highlights the company’s current business model, products and strengths, future expansion plans and market opportunities. 
  • The client also wanted a detailed IP and Patent Valuation report. 

Approach 

  • For preparing a detailed report, we studied the company’s business model, industry overview and outlook, product portfolio, its customer base, competitive landscape, its unique strengths and future strategies. 
  • To prepare a comprehensive report we analyzed data from company’s annual report, website, and investor presentation as well as patent and other financial details provided by the client. 
  • We opted for using a DCF approach for the valuation of business as well as IP and Patent Portfolio which included detailed calculations and presentation. 

Outcome 

The following list demonstrates the outcomes of our approach-

  • A detailed Company and Cyber Security Industry Overview which included company background, product description, sales model and historical achievements, current prevailing trends and projected global cyber security market spend, expected revenue trend, key growth drivers etc. 
  • A summary of Company’s Strength and Strategies emphasizing on the product strengths, five-year strategic vision, current as well as future customer profiles, its competitive position along with key differentiators. 
  • Detailed Patent Descriptions which summarised the active as well as pending patents and their role in improving the company’s operations 
  • A summary of the Leadership Team who lead innovation and the company’s growth with a strong experience 
  • A description of all the Risk Factors involved in making an investment in the cybersecurity technology company along with factors negatively affecting the financial performance, demand for the company’s products, and its competitive position.
  • A detailed Business Valuation reflecting revenue and cost estimates and a comprehensive calculation of enterprise value after free cash flow to equity and using a discounted cash flow approach. 
  • A detailed IP and Patent Valuation using the discounted cash flow method to calculate the value of IP assets. This method also involved determining the present value of the operating cash flow generated by the asset over its useful life. 

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