Independent equity research is defined as the equity research that is carried out by entities other than stock broking firms. It aims to offer an independent assessment of a company's fundamentals and valuation. Globally, prominent entities like Standard and Poor's carry out Independent Equity research.

In view of the requirement for independent research, CRISIL Equities has launched its Independent Equity Research (IER). In IER, CRISIL initiates research and provides ongoing coverage on the company for a period of one year.

The current state of stock markets highlights the need for reliable Equity research. Over the past few years, the market has been characterised by:

» Strong growth

» Low transparency

» Low trading liquidity

» Low investor education

The decision-making process with respect to investments involves three major components. CRISIL IER addresses the first two components of the process through the CFV Matrix

» Analysis of Fundamentals (addressed through Fundamental Grade) and

» Analysis of Returns (dealt in Valuation Grade)

»	An independent and unbiased opinion on the company's fundamentals and valuation adds value to investment decision-making process
»	It helps assess the corporate governance practices adopted by the company
»	It provides ongoing coverage on the company for an entire year
»	Companies can create an investor-friendly image and raise levels of transparency
»	Mid cap companies can generate visibility and liquidity in the market
»	Managements can use our independent analysis while framing long-term strategic decisions

Fair price discovery
Research by an independent agency like CRISIL and the dissemination of such information to various investor classes will enhance the company's visibility in the capital markets and lead to company's fair price discovery in the market.

Enhanced visibility for small & mid cap companies
IER would offer a significant value proposition for companies in the small and mid cap segments. In the absence of extensive coverage on such companies, we believe an independent opinion by CRISIL will help companies generate visibility in the market space. Also, unlike well-established companies, these relatively small companies seldom find avenues to showcase their business worth. CRISIL's IER can be used as an effective tool towards this purpose.

Sagar Sawarkar
Tel No: 91-22-3342 8012
Mobile No: 91 98216 38322
Fax: 91-22-3342 8088
E-mail- ssawarkar@crisil.com