Building Financial Models for NBFC and AMC Coverage
Built financial models for BFSI sector companies using historical data and management guidance to form forward estimates.
Hardi Jain
Equity Research Associate at Investec
From their time as
Equity Research Associate
Investec • 2024
Overview
At Investec, Hardi's core research workflow begins with a thorough reading of a company's annual reports to understand its business model, revenue streams, and operating structure.
The Story
At Investec, Hardi's core research workflow begins with a thorough reading of a company's annual reports to understand its business model, revenue streams, and operating structure.
From that foundation, he builds a financial model anchored in historical data, capturing the income statement, balance sheet, and cash flow dynamics of the company. Once the historical model is in place, he layers in forward estimates derived from management guidance shared on earnings calls and investor communications.
His estimates cover revenue, expenses, and key profitability metrics, calibrated to where management has indicated the company expects to be over the next few years. These estimates then feed into the valuation work, where he applies relevant valuation techniques to arrive at a target price.
The final output is a structured research report covering the company introduction, industry context, business model, product breakdown, and the valuation basis. This workflow has been applied across multiple NBFCs and AMCs in the BFSI sector.