CNI Research Ltd Management Discussions

Industry Structure and Development

Cni Research Ltd. is a qualitative research, information and online media company with expertise in covering the economy, capital markets as well as small-cap and mid-cap companies. The company provides research services to domestic clients and also to global clients. Cni has an edge over other research houses as the company’s focus is primarily on small and mid-cap companies, whereas most of the other research houses concentrate on large-cap companies. Cni Research Ltd. has succeeded in creating a niche space for itself as slowly India is catching its global peers for research. NSE and BSE too have made initiatives to make some research available on their websites so that investors can make an informed decision. Moreover, quality conscious investors and traders always resort on services from research firm such as Cni Research Ltd. More than 3500 FII read Cni research through all acclaimed global distributors.

International investors are taking an active interest in small-cap and mid-cap companies which further enhances the need for qualitative research. Cni has tied up with many global agencies discussed elsewhere to distribute their research to domestic as well as global investors.

So far, Cni has been partnering with global players for selling or distribution of content to major FII overseas through various agencies. From past couple of years, your company has started providing research services and content to small and medium entrepreneurs, qualifiedprofessionals, brokers and sub-brokers and became a partner of Cni Research Ltd. through a franchise structure. The franchise partnership scheme is yet to catch momentum due to continued sluggish market conditions. Our prediction of NSE is 47000 by 2030 which will drive the growth of capital market & your company.

The ICAI has initiated investors education. Which will go long way to reform the capital markets as Chartered accountants are backbone of financial systems.

The growth of capital market is inevitable with the rising level of globalization and India is especially on the verge of expanding its wings by allowing major cross investments and mergers and acquisitions. Internet business is still in nascent stage and availability of funds to such business is always a risk and may impact delivery of several green field ventures.

The auditors are reviewing the control systems and processes in the operations of the company. The Audit committee and the Board are reviewing the findings of the Auditors.

During FY 2024, your company reported a total revenue of Rs. 1042.05 Lakhs. Your company is heavily dependent on stock markets. LTCG has resulted in nervousness in capital markets in the recent few quarters. Looking ahead, we believe the stock markets are expected to witness continuous uptrend in the long-term supported by optimism over key structural reforms which would further drive our profits in the sale of shares business segment.

Indian Govt has projected exports to reach 600 Bn $ by 2030 from current 44 bn $ which is 16x. this means capital market will prosper till 2030 and our estimate nifty 47000 will see the light of the day.

Global markets started healing from the collapse of Lehman Brothers in 2008, and the Indian market also tested 21,000, which your company had predicted earlier. In April 2009, your company first issued a Sensex target of 14,300, which was attained in 45 days. Your company then revisited the numbers to 20,000 which was also achieved in 2010. On the eve of Diwali in 2010, your company estimated a new Sensex target of 21,000 and on the day of Diwali itself that too was achieved. Additionally, in 2014 your company predicted that BJP led NDA would win the upcoming elections with 272 seats and targeted that Sensex would reach 25,000. With the successful outcome of elections for BJP government, this new target was also achieved within a few days. Your company’s prediction of Sensex crossing 30,000 also came into reality for the next two years. The testimony of the facts told by your company are available to the viewers in the Cni news clipping section of the website. Even 2019 BJP win with 330 seats was predicted by none other than your Company. Cni achieved an unmatched feet when predicted sensex 75000 and it has achieved.

Since the 2008 financial crisis, the global markets have bounced back. As the markets globally started recovering, Indian markets too showed healthy and robust recovery. The Indian government made alot of efforts to reform the Indian economy by including demonetization and replacing the tax structure system with GST to foster and stabilize the growth. The government can boost jobs and increase the income levels of the people by introducing aggressive policies coupled with reforms. This will result in higher retail participation and boost overall capital markets performance.

Your company is now forecasting Sensex to cross 85,000 during the financial in the next 3 years, partially driven by confidencethat the New Narendra Modi led government would likely pass through fundamental reforms. This would result in the growth of the financial services industry and thus support the growth of your company. Amidst such favorable market scenario, we expect our revenues to continue its growth trajectory. This would be backed up by the expansion of our business into new avenues of investments and creation of new alliances. One such new avenue is making sizeable investments in growth companies and reaping benefits from the same. We have arrived at come new business which were informed to stakeholders through announcement on BSE.

Wealth creation never happens through trading but by picking smart stock for investments. Few of the most successful investors in India have made a lot of wealth by picking up Infosys at just Rs. 100. There are also a few investors who made a good fortune by picking up Hero Honda and Bharti at Rs. 40.

Wealth creation is only possible if the investors have the knowledge to pick up the right stock at the right time and at the right price. Cni by imparting knowledge of smart stock picking to the investors is leaving no stone unturned to make fortunes for investors. Indian equity markets (BSE Sensex) continued to remain extremely volatile from FEB 18 till date. From the implementation of the "Goods and Services Tax" bill in July 2017 and Moody’s rating upgrade in over a decade to bringing back of the long-term capital gains tax, which spooked the investors, but recovered. India’s leading equity benchmark, BSE Sensex touched new record levels of 75000 in current year though. Few upswings and downswings marked macroeconomic developments in the past financial year. The economy witnessed healthy signs of revival. With GDP of 7% and GST Collection at 2.10 lakhs Crores per month the India growth story has just begun. India eyes 600 bn $ exports. India achieved 5 trillion $ market capitalisation and GDP @ 4 trillion & setting the forecast growth in the Capital Market. The Market capitalisation to GDP is still at 1.25 as against all time high of 1.49.

India demography has changed recently where PSU market capitalisation has seized no 1 spot over DII and FPI. The over emphasis as FPI has been reduced drastically as they slipped to no 3 position from no 1 due to value unlocking in PSU & smart increase in SIP for DII.

We expect the SIP numbers to rise further to 30000/35000 crs in few quarters which agurs well for the growth of capital market and your company.

With a vision to boost reforms and promote investments in the country, the current NDA government unveiled Make in India programme in September 2014. Other objectives include building world class manufacturing infrastructure, improving the skill set of the Indian workforce, nurturing innovation and protecting intellectual property. It is estimated that electronics demand would reach $400 billion by 2021. With Make in India, the Government aims to bring down the electronics import by 2021 and strive towards becoming an electronic manufacturing hub. To develop a competitive edge in the world, the Government has identified 25 key sectors as a part of Make in India programme including Automobiles, Aviation, Defense Manufacturing, Oil and Gas, Tourism, etc. With this regard, there have been sector specific measures announced to attract domestic and foreign investors.

Some key features related to the Make in India programme:

New Initiatives: The government has taken varied steps to improve ease of doing business in India by simplifying business processes and procedures, opening up the economy through new de-licensing and deregulation measures and creating confidenceamong entrepreneurs through lesser turnaround time and creating transparency in the system. India’s rank in ease of doing business index has risen from 130th in FY 2017 to 100th in FY 2018. Some other reforms to create a healthier environment for businesses are: a) online portals for clearances and filings, b) Trade Portal and c) creating Investor Facilitation Cell for guiding investors through the entire life-cycle of the business.

Foreign Direct Investment (FDI): With an intent of creating a robust business environment, the government of India has relaxed norms for FDI in most of the sectors. FDI limit in the defence sector and railway infrastructure increased to 100% post the Make in India campaign. Substantial ease in FDI norms should be a key positive for the Indian economy as it should gain access to global economy and capital.

Intellectual Property Facts (IP): Changes were announced at legislative and policy level to protect intellectual property rights of innovators and creators by the government.

National Manufacturing: The major initiatives regarding this reform are: a) to raise the annual growth of manufacturing sector between 12% and 14% over the medium term, b) increasing share of manufacturing sector in GDP from 16% to 25% by 2022, c) to create around 100 million more jobs in the manufacturing sector by 2022 and d) developing skills of the rural population and urban poor.

The Make in India programme is gaining the confidence of domestic and global corporates which are willing to invest in India and the government has started to get proposals regarding the same.

Cni Research Ltd. has entered into a content sharing agreement with Thomson Reuters, Capital IQ a division of Standard & Poor’s, Dow Jones Factiva a division of Dow Jones and TheMarkets.com LLC, USA, Blue Matrix and EMIS (ISI Emerging markets UK) and host of other alliances in domestic arena.

We have also signed with Bloomberg which makes Cni the only agency sharing content with multi agencies.

People Initiatives Our employees are the key to our sustained success. Using our own HR Management Solution the entire performance appraisal process has been automated to bring in better transparency and accountability. The company is particularly fortunate in having created a team of dedicated employees who share a common passion and vision to provide service of the highest quality. This has given the company a substantial competitive edge.