Equity Research of the FMCG and Pharmaceutical Industry

Abstract

This internship report is based my two-month long internship which I have successfully completed with Acumen Capital Market (India) Ltd under the Research Department. The project that I carried out is based on the equity research of two industries, namely, Fast Moving Consumer Goods Industry and Pharmaceuticals Industry. The report also includes information about the company and its major competitors. This internship has helped me gain practical exposure and has helped in applying the theoretical knowledge into practice. Firstly, fundamental analysis was carried for both industries. Under fundamental analysis, first the industry analysis was carried out. This included the PESTEL analysis and the Porter‟s Five Force Framework. Followed by that, an analysis of the top five companies, by market capitalization, of the two industries was carried out. This included the SWOT analysis, Cash Flow Statement analysis and analysis of a few key ratios. Secondly, technical analysis was carried out. For this, three main indicators were used. These included the oscillator indicator Relative Strength Index, Moving Averages and the Moving Average Convergence Divergence. This analysis helped in identifying which stocks to buy and which to sell and also at what price.