• No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.
  • Attention investors: Prevent unauthorised transactions in your demat account. Update your mobile number with your Depository Participant. Receive alerts on your registered mobile for all debit and other important transactions in your demat account directly from CDSL on the same day. Issued in the interest of investors. KYC is one time exercise while dealing in securities markets. Once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
KEYNOTE

Research

Our process

We study a company's business, its management and its financial results before we value it.

Overview

Long-term opportunities in Indian equities

Keynote Capitals is a domestic institutional brokerage. Its research helps institutional investors, portfolio management services (PMS) managers and ultra-high-net-worth clients find long-term investments in Indian equities.

We look for businesses whose value the wider market has not yet fully recognised.

Philosophy

Industry and company-specific analysis

Our analysts study industries and individual companies, with particular attention to midcap and smallcap companies. Many of these companies have strong growth potential but little research coverage.

For each company we study its competitive position, what drives its growth, the quality of its management, its financial strength and whether it can keep creating value for shareholders.

Methodology

Qualitative assessment

First, we assess the business and the people who run it.

Sustainable competitive advantages

We look for companies with lasting business strengths, such as:

  • A strong market position
  • A business model that can scale
  • A favourable industry structure
  • High returns on each additional rupee of capital invested

Management quality and governance

We look closely at:

  • Management's ability and record of delivery
  • How management allocates capital
  • Disclosure and governance standards
  • Whether management's interests match those of minority shareholders

Methodology

Quantitative assessment

Then we test that assessment against the financial results.

Quality of earnings

We prefer businesses with:

  • Revenue and earnings growth that can last
  • Strong operating cash flows
  • Efficient use of capital
  • Financial discipline

Return ratios

We use return on equity (ROE) and return on capital employed (ROCE) to judge the efficiency and quality of a business.

Valuation

A good company is not always a good investment. We consider several valuation methods for each company and choose the one that suits its growth profile, type of business and long-term earnings potential.

Published research by company Research disclaimer