Course Policy Investment Analysis

Mukesh Patel School of Technology Management and Engineering

Technology Management Department

Course Policy

Course Code & Name: Investment Analysis (Code : 703TF0E003)

Program/Branch/Semester : MBATech / All Branches / Sem IX
Academic Year : 2024-25
Credit Details :
L T P C
2 0 0 2
Course Coordinator : Dr. Abhay Kumar
Faculty
022-45024858
Contact No. & Email :
abhay.kumar@nmims.edu
Office : MPSTME new building
Office hours : According to the timetable
Other Course Faculty : Faculty 1.- Dr. Abhay Kumar
members teaching this Faculty 2.- Dr. Mahipal Gadhvi
course
Queries by Emails are encouraged. abhay.kumar@nmims.edu/
MAHIPAL.GADHAVI@nmims.edu
o Pre-requisite: The course requires a thorough understanding of Financial Accounting and
Financial Management
Pre-Course Activity:
Using GenAI, explore the following:
● Identify how this course will help you in your career goals.

● How does the course help to identify overpriced and underpriced securities

● How does the course help in identifying various risk associated with securities.
Course Link:

1 Introduction to the Course

1.1 Importance of the course

1.1.1 Domain Relevance:

The course "Investment Analysis" is a crucial part of finance and investment education, it
teaches the fundamental skills needed to assess the value of different types of securities, such
as stocks, bonds, and other financial instruments. This is essential for making informed

Page 1 of 8
Course Policy Investment Analysis

investment decisions. Students learn various valuation methods, such as discounted cash flow
(DCF) analysis, price-to-earnings (P/E) ratios, and other financial metrics. These techniques
are key for determining whether a security is overvalued, undervalued, or fairly priced. The
course emphasizes the analysis of risk associated with different securities. Students learn how
to measure, manage, and mitigate risks, which is vital for building a resilient investment
portfolio.
1.1.2. Industry Relevance:
Investment analysis is crucial across various industries for several reasons:
1. Informed Decision-Making: It helps investors and companies make informed
decisions by evaluating the potential risks and returns of different investment
opportunities1.
2. Portfolio Management: Investment analysis is key to developing and managing a
diversified investment portfolio. It ensures that investments align with an investor’s
goals, risk tolerance, and time horizon.
3. Company Valuation: It aids in assessing the financial health and intrinsic value of
companies, which is essential for mergers, acquisitions, and other corporate strategies.
4. Risk Management: Investment analysis helps in identifying potential risks and
developing strategies to mitigate them, ensuring more stable and predictable
investment outcomes
1.2 Objective of the Course
The objectives of a "Investment Analysis" course are designed to equip students with the
knowledge, skills, and analytical tools necessary to evaluate financial securities and make
informed investment decisions. The objectives of the course are to make students understand:
● Fundamental aspects of Investments.

● Risk and return on investment.

● Valuation of the securities

2. Course Outcomes (CO), Mapping with Program Outcomes (PO), and Program
Specific Outcomes (PSO)

o 2.1 Course Outcomes

The course “Investment Analysis” typically aims to equip students with the skills and
knowledge to evaluate and manage investments effectively. Here are some common
outcomes you can expect from such a course:
2.1.1 CO1: Calculate intrinsic value of shares and bonds
2.1.2 CO2: Calculate risk and return associated to different financial assets.
2.1.3 CO3: Make investment decisions related to financial assets.

Page 2 of 8
Course Policy Investment Analysis

2.2 Program Outcomes (PO) the course contributed to:

2.2.1 PO-1: An understanding of global practices impacting organizations
2.2.2 PO-2: Critical thinking skills
2.2.3. PO-3: Understanding Business Domains and Integration with Technology
2.2.4 PO-4: Effective communication skills
2.2.5 PO-5: An understanding of ethical business models

CO-PO Mapping
PO1 PO2 PO3 PO4 PO5
CO1 1 2
CO2 3 1
CO3 2 1
Mapping Levels: 1- High, 2-Medium, 3-Low

3 Teaching-learning methodology
3.1 Instruction Plan
Asses
Teachi
Bloo COs sment
Lectu ng
Topic ms Resources map and
re No. Metho
Level ped Evalu
d*
ation
Unit 1: Risk and Return of Security

Risk and Return of Chandra P.

Security: Investment
Introduction, return on Analysis and
common stocks under APPL Portfolio MT-1,
1 CO1
uncertainty, for a single Y Management, 5e, TEE
stock Expected Return, PPT, New Delhi, Tata
Concept of Probability Whiteb Mcgraw hills.
Distribution of Return. oard, Chapter- 4
Risk and Return of MS Chandra P.
Security: Excel, Investment
Co-movement of two- Discuss Analysis and
asset return, measuring ion, APPL Portfolio MT-1,
2 CO1
covariance, definition and Caselet Y Management, 5e, TEE
simple example, s New Delhi, Tata
correlation coefficient. Mcgraw hills.
Chapter- 4
Risk and Return of Chandra P.
Security: APPL Investment MT-1,
3&4 CO1
Two asset portfolio case, Y Analysis and TEE
expected return and Portfolio

Page 3 of 8
Course Policy Investment Analysis

variance analysis of
returns of a two-asset
Management, 5e,
portfolio. Simple
New Delhi, Tata
numerical example and
Mcgraw hills.
graphical illustration.
Chapter-4
Calculation of Beta,
CAPM Model, SML.
Unit 2: Security Market Indices
Security Market Indices:
Utility of Security Market PPT,
Sasidharan, K.,
Indices, Construction of Whiteb
& Mathews, A.K.
Security Market Indices, oard,
(2011). Security
Types of Security Market MS
Analysis and
Indices in India, Excel, Analy CO - Term
5 Portfolio
Limitations of Various Discuss se 3 work
Management,
Indices. Adjustment in ion,
New Delhi, Tata
Indices after addition and Caselet
Mc-Graw Hill.
deletion of scrip. s
Chapter 5

Unit 3: Efficient Market Hypothesis

PPT,
Efficient Market Whiteb Chandra P.
Hypothesis (EMH): oard, Investment
Concept of Efficiency of MS Analysis and
Stock Markets, Forms of Excel, Under Portfolio CO - Projec
6 &7
EMH, Empirical Tests of Discuss stand Management, 5e, 3 t
EMH in the Indian Market. ion, New Delhi, Tata
Description of Tests of Caselet Mcgraw hills.
EMH. s Chapter-9

Unit 4: Fundamental Analysis

Readings:
Fundamental Analysis:
PPT, Chandra P.
Objectives and Beliefs of
Whiteb Investment
Fundamental Analysis,
oard, Analysis and
Framework for Analy Projec
8 MS Portfolio
Fundamental Analysis, se t
Excel, Management, 5e,
Concept of Intrinsic
Discuss New Delhi, Tata
Value. Company
ion, Mcgraw hills.
Analysis.
Caselet Chapter-13
s
Fundamental Analysis: Analy Chandra P. CO - Projec
9
Industry Analysis, se Investment 3 t

Page 4 of 8
Course Policy Investment Analysis

Analysis and
Industry Life Cycle, Portfolio
Michael Portal 5 forces Management, 5e,
analysis New Delhi, Tata
Mcgraw hills.
Chapter-15
Chandra P.
Investment
Fundamental Analysis:
Analysis and
Economic Analysis, Case
10 & Analy Portfolio CO - Projec
discussion related to
11 se Management, 5e, 3 t
fundamental Analysis
New Delhi, Tata
Mcgraw hills.
Chapter-15
Unit 5: Technical Analysis
Technical Analysis: Chandra P.
Concept of Technical Investment
Analysis, The Dow Analysis and
Theory, Elliot Wave PPT, Under Portfolio CO -
12 MT2
theory, Types of Charts. Whiteb stand Management, 5e, 2
Price Patterns. oard, New Delhi, Tata
MS Mcgraw hills.
Excel, Chapter-16
Discuss Chandra P.
Technical Analysis:
ion, Investment
Trend lines. Advanced
Caselet Analysis and
Technical Tools,
s Under Portfolio CO -
13 Academic Perspective of MT-2
stand Management, 5e, 2
Technical Analysis.
New Delhi, Tata
Concept of Technical
Mcgraw hills.
Analysis Indicators
Chapter-16
Unit 6: Equity Stock Valuation Model
PPT,
Whiteb Chandra P.
Equity Stock Valuation
oard, Investment
Model:
MS Analysis and
Discounted Cash Flow
Excel, Analy Portfolio CO -
14 (DCF) model, Two stage MT-2
Discuss se Management, 5e, 2
DCF model, Ratio
ion, New Delhi, Tata
methods.
Caselet Mcgraw hills.
s Chapter-13

Unit 7: Bond Valuation

Page 5 of 8
Course Policy Investment Analysis

Bond Valuation: Chandra P.

Strategic Role of Bonds: Investment
An Investor’s Point of Analysis and
15 & View, Bond Terminology, Portfolio CO -
Apply MT-2
16 Types of Bonds, Value of Management, 5e, 2
a Bond, Bond Returns. New Delhi, Tata
Mcgraw hills.
Chapter-12
PPT,
Bond Valuation: Chandra P.
Whiteb
Assumptions underlying Investment
oard,
Yield to Maturity. Bond Analysis and
MS
17 Price Theorems, Accrued Analy Portfolio CO - Projec
Excel,
&18 Interest and Riskiness of se Management, 5e, 3 t
Discuss
Bonds. New Delhi, Tata
ion,
Mcgraw hills.
Caselet
Chapter-12
s
Bond Valuation:
Chandra P.
Interest Rate Risk and
Investment
Duration. Bond Price
Analysis and
Volatility, Convexity,
19 Analy Portfolio CO - Projec
Immunization, Analysis of
&20 se Management, 5e, 3 t
Deep Discount Bonds,
New Delhi, Tata
Analysis of Convertible
Mcgraw hills.
Bonds.
Chapter-12

4 Assessment Policy

4.1 Component wise Continuous Evaluation Internal Continuous Assessment (ICA) and
Term End Examination (TEE)

ICA TE
Assessme (50Marks) E
nt (50
Assignment / Mini
Compone Mar
Class test Class test 2 Viva/Quiz/ Project and
nt ks)
1 Class Group
participation Presentatio
n
Marks 10 10 10 20 50

Page 6 of 8
Course Policy Investment Analysis

Timeline 07th to 18th to 24th 30th Nov 02nd Dec 24

12th Oct Nov

Project Description: Each group (of 5 or 6 students) will select an industry. Each group will
be assigned a contemporary topic related to the Investment Analysis and students will be
expected to use relevant data of stock markets and come with proper analysis and
interpretations. For Example: Topic – Fundamental Analysis of a blue-chip company.

4.1.1 Internal Continuous Assessment (ICA) – 50 marks

Class Test-1 conducted in the 4th week. It will be for 10 marks (30 Minutes-duration).
Class Test-2 conducted in the 9 th week. It will be for 10 marks (30 Minutes-
duration). Term Work will have a weightage of 30 marks for ICA.
Report submission is required on time. Penalty will be levied for late submissions.
4.1.2 Term End Examination (TEE) – (50 Marks)
TEE conducted at the end of the semester will be for 50 marks (2-hour duration).
There will be 7 questions (each question will be 10 marks). Q1 will be compulsory
and any 4 from the remaining to be solved.
4.1.3 Course Passing Criteria
4.1.4 ICA (50 marks) – No minimum marks
4.1.5 TEE (50 Marks) – 40% required for passing
4.1.6 (ICA + TEE) (100 marks) - 40% required for passing

4.2 Assessments and Mapping to Course Outcomes

Internal Continuous Assessment (ICA) Term End

Examination
(TEE)
Course MT-1 MT-2 Term Work TEE
Outcomes
CO-1 Y Y
CO-2 Y Y
CO-3 Y Y
o

5 Tutorial Plan

2This course does not have any tutorials.

6 Course Material

Page 7 of 8
Course Policy Investment Analysis

I. Chandra P (2021). Investment Analysis and Portfolio Management, 6e, New Delhi,
Tata Mcgraw hills.

II. Reference Books

● Sasidharan, K., & Mathews, A.K. (2011). Security Analysis and Portfolio
Management, New Delhi, Tata Mc-Graw Hill.
● Talwar S (2016). Security Analysis and Portfolio Management, Cengage
Learning India
● Reilley &Brown, Investment Analysis and Portfolio Management , New Delhi,
Cengage, 2013.

References and relevant material will be uploaded on MS-Teams by faculty every week.

7 GenAI Usage
7.1 Pre-class Activity:
Reading about the relevance of each topic for discussion in the class.
7.2 In-Class Activity:
Use GenAI to find examples of transactions for a business to prepare final accounts.
7.3 Assignments
GenAI is not to be used for doing Assignments given by faculty.
7.4 Challenging Problems
GenAI is permitted to be used. Students need to cite the references used.

8 Academic Integrity Statement

Original work expected from students for all of the assigned assessment work. Copying in
any form not acceptable and will invite strict disciplinary action. Evaluation of
corresponding component will be affected proportionately in such cases. Plagiarism
detection software will be used to check plagiarism wherever applicable. Academic integrity
is expected from students in all components of course assessment.

Page 8 of 8