“It is amazing what an accurate picture of the relevant points of strength and weakness of each company in an industry can be obtained from a representative cross-section of the opinion of those who in one way or another are concerned with any particular company.” – Philip Fisher
While buying a business (or stock), there is no substitute to primary research when carrying out a due diligence process. But lack of resources or inexperience of the research team to do a quality research often becomes an impediment for an individual investor or even an institutional investor.
We have developed a special expertise in carrying out such research for our clients. We are ready to go as far and wide as needed to get to the truth about a company. Philip Fisher termed this as‘Scuttlebutt’
We offer customized primary research services to investment managers like hedge funds, mutual funds and PMS. Stalwart Advisors helps clients rapidly explore and build confidence in their views on investment debates. We utilize a range of established and emerging primary research techniques for investigating investment debates, including expert networks to formulate hypotheses, market research to confirm hypotheses, and web analysis to gather content.
Managements are always painting a rosy picture of their businesses. Investors need to double check what ground reality is and the best way to do that is to carry out effective, customized and confidential research.
“Go to five companies in an industry, ask each of them intelligent questions about the points of strength and weakness of the other four, and nine times out of ten a surprisingly detailed and accurate picture of all five will emerge.”
We sign a DND agreement and assure our clients complete confidentiality on the research we carry out for them.
To request a research proposal on any industry or company, please write to us
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How we do it?
[toggle title=”Industry changes”] Things happen on the ground before they are reflected in the numbers. A lot of new trends, changes in demand, changes in industry structure, competitive intensity can be accurately measured by doing an effective on ground research. This helps us catch trends that are new and also helps us catch the changing demand scenarios sooner than other investors who get clarity after the results are declared. [/toggle]
[toggle title=”Product and Services”] We interview dealers, competitors, customers etc to get an understanding on the market potential of a company’s products and the type of markets it cater to. Its essential to inquire managements on their understanding of the existing and potential markets and confirm the same from various sources mentioned above. [/toggle]
[toggle title=”Quality of Sales force and policies”] To sell even a worthwhile product to its full potential, its imperative that a company has an outstanding sales organization and incentive structure for sales force that is constructive and gets the best out of the team. Even though a lot of investors gets excited by just looking at the product, we realize the difference a sales organization can make and try to get as much information on the ground for the same. [/toggle]
[toggle title=”Quality of competition”] A good competition is a boon and bane. It can bring the best out of an organization and simultaneously it can make its life difficult and effect the profit margins. The sustainability of high profit margins is a tough task and a constant on the ground research with dealers and employees of company and competitors to get an idea about the possibility of future profit margin deterioration (or conviction of maintenance of high margins) can help us avoid the fallacy of extrapolating high margins in fancy excel sheets. [/toggle]
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Sample Reports
[tabbed_section][tab title=”Kewal Kiran Clothing” id=”t1″] We did a scuttlebutt on this apparel company in Delhi/NCR region. Read the Report [/tab]
[tab title=”Jamna Auto” id=”t2″] For most auto ancillary its the replacement market that adds significantly to its margins. This company was no different and management was giving a rosy guidance. We undertook a scuttlebutt to discover whether management will be able to walk the talk. [/tab]
[tab title=”Shakti Pumps” id=”t3″] We recently undertook an interesting primary research on this company and the sector for an institutional client. We will be able to share the findings and report once the DND period expires. [/tab] [/tabbed_section]
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