Stock price tumbled 10% during the trading session, after releasing the report
INTERVIEW - EQUITY RESEARCH
Taking the competition in the equity research field to a new height, oil and gas analyst of Citigroup Global, Pradyumn Mishra wrote 1072 pages (including disclaimer of 32 pages) on Reliance Industries initiating a buy call on the stock. However, negatively responding to the report investors made huge sell off in the stock losing 10% of the market value of the company.
Talking on his report, Pradyumn said "Hey I feel great after releasing this report. First time ever in the world, somebody has written such an extensive and exhaustive report. I am happy that first time in the history of equity research anybody has crossed magical 4 figure mark." Pradyumn took 6 months to complete his report on Reliance Industries.
It was a very tiresome work, as 3 associates under Pradyumn continuously searching for reports of other broking firms and data from government reports.
"Today, other broking firms are becoming more and more notorious and encrypting their reports with password protection which made our job pretty difficult. However, we still managed it successfully," said Pradyumn appreciating his team's flawless skills of copy and paste.
But taking 6 months is pretty long time to write such a report. Pradyumn said "The report should get appreciated that Reliance Industries run up more than 20% since we recommended 6 months back."
But why such a long report? Who has the time to read 1072 pages of trash (sorry text)?
Pradyumn said "It is a big achievement in Equity Analyst's life writing such a big report. Generally, ordinary analysts don't allow themselves to fly his imagination beyond 50 pages, as copying and pasting is a bit tedious job. Extra-ordinary guy makes it more than 150 pages to below 250 pages. I along with my team achieved more than 1000 pages, says everything. About investors, its darn who cares? Our job is to write the reports. Their job is to read them and apply through investment decisions. Now they don't have time to read a masterpiece then it's their loss, why should I worry?"
But Equity Analysts generally write such a long report when they want to change their jobs. So is there anything like that in Pradyumn's mind.
Pradyumn said "It is wrong to call that writing such huge reports just to showcase the knowledge we have and get better and bulky jobs. For writing more than 1000 pages report, we had to read almost 4000 to 5000 pages of reports of other broking firms, ridiculous government reports and notes and many trashy circulars. Out of that we had to choose the texts to copy and convert them into our language, which is a bit difficult and require a lot of dedication to be put into. So, all this hard work is not just for the sake of job opportunities. However, Citi's global headquarters have offered me to excel myself to Investment Banking position in Hong Kong, which I am yet to consider."
However, share price of Reliance Industries tumbled sharply in the trading session, as many investors accepted that they will take at least 6 months to read entire report and to take decision on buying the stock. Some investors also agreed that a lot of them are facing migraine attack on just thinking of reading such a bulky report.
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