Module 08 · Exercises

Warm-up

E08.01 For each sector, name its single most important KPI and its data source: banks; IT services; FMCG; pharma (US generics); defence; autos; cement; oil marketing; residential real estate; telecom; life insurance.

E08.02 Name the dominant regulator or policy lever for each: NBFCs; AMCs; exchanges; power generation; city gas; telecom; hospitals; solar modules.

E08.03 Which valuation method is primary for: a private bank; a life insurer; a cement company at a trough; a loss-making platform; a REIT; a regulated transmission utility; an EPC contractor; an IT major?

E08.04 State the accounting quirk that most distorts cross-company comparison in: retail/QSR; developers; insurers; EPC; upstream oil; NBFCs; autos with finance arms.

E08.05 Define: CASA, CC growth, SSSG, ANDA, book-to-bill, VAHAN, EBITDA/tonne, GRM, pre-sales, ARPU, APE.

Core

E08.06 Banks. System GNPA is at a multi-decade low (~1.8%) and NIMs compressed ~20 bps in FY26. Explain why "record profits, lowest NPAs" is a warning for forecasting credit costs, and what through-cycle credit cost you would use for a large private bank, a PSU bank and an MFI.

E08.07 IT. TCS reduced headcount by 23,000+ in FY26 while revenue grew low-single digits. Compute the implied change in revenue per employee (assume revenue +3%, headcount −4%) and describe the two competing interpretations. Which number in future quarters would settle it?

E08.08 Consumer. Birla Opus reached ~10% share of decorative paints within two years. Using the moat tests of 05.3, list the numbers you would track for Asian Paints each quarter and the threshold that would say "the moat is breached".

E08.09 Pharma. A company earns 45% of EBITDA from US generics; its largest plant (60% of US supply) receives a warning letter. Estimate the EBITDA at risk over two years if launches from that plant stop and existing products erode 8% a year, and list the disclosures you would demand.

E08.10 Defence. HAL's order book is ~₹2.5 lakh Cr against annual revenue of roughly ₹35,000 Cr (verify). Compute years of visibility, explain why a 7-year backlog does not mean 7 years of certain revenue, and name the execution constraint.

E08.11 Autos. FADA data show retail sales +18% in August 2026 while wholesale (SIAM) grew less. What does the gap imply for dealer inventory, and which two numbers would you pull next?

E08.12 Cement. 160–170 MT of capacity is being added over FY26–28 on a ~650 MT base with ~72% utilisation. Estimate utilisation in FY28 if demand grows 7% a year, and describe the pricing consequence.

E08.13 Energy. Crude is above $100. Write a two-line P&L effect for: an OMC with frozen pump prices; an upstream producer with a windfall tax; a city-gas distributor with cut APM allocation.

E08.14 Real estate. A developer reports revenue −40% and pre-sales +25%. Which is the business doing, and what three metrics replace revenue in your dashboard?

E08.15 Telecom. Airtel's ARPU is ₹264 and Vi's ₹177 (Q1 FY27). If a 15% tariff hike is implemented with 90% flow-through to EBITDA, compute the EBITDA effect per 100 mn subscribers for each, and explain why Vi's equity responds more per rupee of EBITDA.

E08.16 Financials ex-lending. NSE's IPO priced at ~₹22,562 Cr of issue size. List the five revenue lines you would model, the regulatory scenario for each, and the one comparable you would use for a cross-check.

E08.17 Cross-sector. Kaveri Pumps sells into agriculture, industry and state solar tenders. Using the playbooks, list the macro/policy variables from three different sectors that drive its three segments.

Stretch

E08.18 Write the ten-question checklist for a sector the module does not cover (e.g., hotels, education, staffing), following the template.

E08.19 For any two sectors, construct the "unidentified industries" exercise: common-size P&L and five ratios that would let a reader identify the sector — and explain which ratio is the giveaway.

E08.20 Choose one playbook and update it: find three facts stated "as of September 2026" and verify or correct them with current sources.

Real-world task

E08.21 Pick three listed companies from three different playbooks. Build a one-page KPI dashboard for each from the latest investor presentation and annual report, run the ten-question checklist, and write a paragraph on which of the three you would research further and why.

E08.22 For one of them, find the regulator's or industry body's monthly data series (VAHAN, CEA, TRAI, AMFI, PPAC, RBI DBIE) and chart the last 24 months against the company's reported quarterly numbers.