Our systematic approach to identifying and analyzing investment opportunities
Rigorous analysis through comprehensive data gathering and evaluation
We do extensive research to arrive at estimates of expected cash flows, asset values and earnings of businesses. Through comprehensive data gathering from multiple sources and an extensive network in India, we ensure thorough analysis of every investment opportunity.
We do extensive research to arrive at estimates of expected cash flows, asset values and earnings of businesses.
We cull information from public databases, quarterly and annual filings, annual reports, meetings with management, competitors, vendors, customers and other industry participants, industry experts, trade journals and bankers.
We have an extensive network in India to get data and information for analysis.
We believe that the following steps are essential to our process
We identify opportunities through a number of ways. We have numerous financial models and screens that are used to filter investment opportunities within the framework of the investment philosophy. We have many contacts and professional relationships. This gives us many opportunities consistent with the investment philosophy.
We do intensive financial and qualitative analysis on companies once an opportunity is identified. The analysis is mainly to arrive at whether a disparity exists or not between the traded value of the security and its intrinsic value. We have substantial experience in determining the intrinsic value of companies across sectors. Multiple valuation metrics including discounted cash flow analysis, price to earnings, dividend discount model, price to sales, price to book, price to replacement cost of assets, comparative analysis are used to arrive at the valuation of a company.
Other than financial analysis, we extensively meet associates of the company to understand the opportunity better. These include vendors, customers, middle management, bankers, competitors, large stakeholders and senior management. This helps us arrive at a more accurate appraisal of intrinsic value and also exit an investment if unfavourable events arise or the team's original calculation of intrinsic value was wrong.
Once the intrinsic value is arrived at, the portfolio manager decides on the allocation that security will have in the portfolio. This allocation depends on a number of factors including, the quality of the company, the discrepancy between market price and appraised intrinsic value, and liquidity.
The firm has been in business since 2003 and has an established track record and the promoters have investment experience of over 25 years each. Testimonies in the public domain on Jeetay Investments: