Research Analyst

Job Description

Job Purpose

To recommend and advise investors for various investment ideas from medium to long term perspective by doing quantitative and qualitative analysis of listed companies. To contribute to the team activities in generating investment ideas, creating and maintaining large and complex databases, help in preparing various reports like strategy note, morning note, weekly market updates. These activities will help in driving sales and information dissemination to investors and sales force.

Job Context & Major Challenges

Aditya Birla Money Ltd. (ABML) is primarily a Broking Company, deals in Equity, Commodity & Currency. Workforce of 800 spread across 40 locations with customer base of in excess of 3 lacs. Commodity operations are managed through its 100% subsidiary Aditya Birla Commodities Broking limited. ABML is one of the leading securities trading companies in the country. ABML operates in a fragmented equity broking business and has a daily turnover of close to 3,000 Crores with a market share of 1%. ABM works in a highly regulated environment with a host of regulators like SEBI, RBI, AMFI, FMC, IRDA etc. regulating its day to day operations. In addition to the regulator ABML is also subject to close monitoring and inspection through various agencies like NSE / BSE / NCDX / MCX / NSDL / CDSL etc. ABML also operates in a highly competitive market mainly in fragmented industry with ABML competition from major National Broking houses like ICICI Securities, HDFC Securities, Angel Broking, MOFSL etc. and a range of local Broking outfits.

Majority of the broking houses have set up in-house research team that scans companies and stocks as well as analyse macro-economic scenario that impacts the stock market. The Research team at the Fundamental side values the securities based on the growth prospects and attractiveness of the underlying business. It involves analyzing the financials, competitive advantages of the business, quality of management and competitive environment it operates in among other factors. The theory of Research revolves around the fact that the market price of an asset may deviate from its fair value in short term due to extraneous factors such as market trends or investor sentiments, but will tend to move towards its intrinsic value over the long term.

The key responsibilities of Sr. /Research Analyst are:
. To build large databases by extracting and collating appropriate datasets from data vendors like Bloomberg, Reuters, Cline, etc.
. To analyse large and complex databases of macro and micro information and create well-structured reports.
. To disseminate research reports/output to investors/clients helping them take investment decisions.
. To provide research support and inputs for consumption by the investment team in building portfolios and prepare reports/advisory for the clients.
. To timely work on and generate investment ideas so as to capture maximum gains out of it.

The primary challenges faced are:
. To find investible ideas based on rigorous analysis of data/information sourced from quality database available in the market within a sector, given different risk return profiles and competitive advantages of various companies within a sector.
. In a an environment, which is constantly moving and changing, the key challenge is to stay abreast with latest updates in a sector and the companies within it, so as to take nimble investment decisions.
. The challenge is to clearly communicate the investment thesis for a company/sector in a manner which clearly highlights the investment case and arguments so that the investment team/investors can take an informed investment decision.
. Another key challenge of the role is to take relative investment calls when absolute opportunities are more than what can be accommodated in the portfolio

Critical Skillsets are the individual must have a strong knack for financial analysis and equity research. The role involves minor level of client interaction and hence good interpersonal skills are desirable.

Key Result Areas