In-depth Financial Analysis of Indian Company
Budget: ₹1,250 – ₹2,500 INR
Select a Indian company for your choice for 2025 and address the below mentioned questions.Prepare the PPT
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What is the risk profile of your company? (How much overall risk is there in this firm? Where is this risk coming from (market, firm, industry or currency)? How is the risk profile changing?)
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How risky is this company's equity? Why? What is its cost of equity?
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How risky is this company's debt? What is its cost of debt?
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What is this company's current cost of capital?
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Estimate firm’s beta. What is the significance of industry beta (use maximum 3 comparable firms to form the industry)? Compute the industry beta and compare it with firm’s estimated beta.
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How does firm raise its capital? Analyze the capital structure of the firm. Examine whether the firm’s debt to equity ratio is higher than its industry or not. Whether the firm has target debt-to-equity ratio to achieve? Explain how the negative covenants may limit firm’s ability to borrow additional debt.
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What are the different kinds or types of financing that this company has used to raise funds? Where do they fall in the continuum between debt and equity?
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Bringing in reasonable constraints into the decision process, what would your recommended debt ratio be for this firm?
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How does firm distribute its cash to equity shareholders? Compare firm’s dividend policy with its competitors.
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Assess the working capital position of the firm.
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What is the risk profile of your company? (How much overall risk is there in this firm? Where is this risk coming from (market, firm, industry or currency)? How is the risk profile changing?)
•
How risky is this company's equity? Why? What is its cost of equity?
•
How risky is this company's debt? What is its cost of debt?
•
What is this company's current cost of capital?
•
Estimate firm’s beta. What is the significance of industry beta (use maximum 3 comparable firms to form the industry)? Compute the industry beta and compare it with firm’s estimated beta.
•
How does firm raise its capital? Analyze the capital structure of the firm. Examine whether the firm’s debt to equity ratio is higher than its industry or not. Whether the firm has target debt-to-equity ratio to achieve? Explain how the negative covenants may limit firm’s ability to borrow additional debt.
•
What are the different kinds or types of financing that this company has used to raise funds? Where do they fall in the continuum between debt and equity?
•
Bringing in reasonable constraints into the decision process, what would your recommended debt ratio be for this firm?
•
How does firm distribute its cash to equity shareholders? Compare firm’s dividend policy with its competitors.
•
Assess the working capital position of the firm.