FINOMENAL 2016: Day 2: “Markets and Banking in India” – Mr. Ajay Khandelwal, Research Analyst, BOI AXA and Mr. Saurabh Sharma, Associate Director, National Australia Bank

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In an interactive session with the students of TAPMI, Mr. Ajay Khandelwal, Research Analyst, Bank of India AXA, threw light on the importance of studying the market. He explained as to how annual report analysis is must for a manager as it helps understand about the industry, economic scenario, capital acquisition and the kind of sales of the company. He stated, “If you are aware of a company, you will see its tangibility in numbers”. Further he explained about the criteria for selecting stocks, such as history, industry-knowing about industry dynamics, balance sheet analysis, profitability and so on. He further categorized stocks as slow grower (high dividend payer), stalwart (10-12% growth), fast grower (20-25% growth) and so on. He explained how cyclicals, asset play, turnaround story and beneficiary of trend changes help categorize companies. He went on to explain the value migration of various sectors such as IT services, Pharmaceuticals, Banking and telecom.

Mr. Khandelwal later mentioned about discounted cash flow and how it plays a part in evaluating a company. He stated that the size of opportunity in credit industry in India is large. He later stated the types of stocks one should avoid such as hot stocks, whisper stocks and rich valuation, to name a few. He summarized by suggesting the students to buy stocks of only those companies one understands and that too by small amount.

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Mr. Khandelwal was followed by Mr. Saurabh Sharma, Associate Director of National Australia Bank, who gave an insight to the students about the various opportunities available to them in the world of banking. He explained that unlike the usual perception that banks offer opportunities only to finance graduates, there are ample opportunities for graduates of other streams in the banking sector. He stated as to how digitization, race of e-commerce and telecom companies and also risk mitigation is changing the Indian banking landscape. He also explained recent creative disruptions such as payment banks, small banks, UPI Gateway and wallets which is transforming banking sector.

Mr. Sharma further mentioned the vast variety of profiles available in banking sector such as asset/ liability, digital marketing, corporate communication, mid office, treasury operations, audits, etc. which spread across various streams such as product management, marketing, operations and so on. He concluded by suggesting to the students to focus on the profile that excites them and to keep tabs on the development in the same. He also advised them to publish their research and improve networking so as to increase their knowledge base.

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