Jeetay's Research Methodology
Jeetay does extensive research to arrive at estimates of expected cash flows, asset values and earnings of businesses. Jeetay culls 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. Jeetay has an extensive network in India to get data and information for analysis.
Jeetay believes that the following steps are essential to its process:
- Opportunity Identification: Jeetay identifies opportunities through a number of ways. Jeetay has numerous financial models and screens that are used to filter investment opportunities within the framework of the investment philosophy. Jeetay has many contacts and professional relationships. This gives it many opportunities consistent with the investment philosophy.
- Analysis: Jeetay does 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. Jeetay has 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, Jeetay extensively meets associates of the company to understand the opportunity better. These include vendors, customers, middle management, bankers, competitors, large stakeholders and senior management. This helps Jeetay 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.
- Investment allocation: 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:
- Interview of Mr. Chetan Parikh at
- Interview of Mr. Chetan Parikh in programme RD 360 at
- Interview of Mr. Chetan Parikh by Miguel Barbosa of SimoleonSense
- Jeetay is associated with an investment oriented website of long standing: http://www.capitalideasonline.com/
- Abstracts of various letters from Jeetay to its investors since inception
- Details on returns for various tenors under “Jeetay Value Plan”