The Need for Industry Analysis
Industry analysis is an essential responsibility for an equity research analyst.
As an equity research analyst, you need to analyze a particular industry, see its past trends, demand-supply mechanics and future outlook.
The industry analysis report sheds light on the economic health of the company, underlining the understanding whether it will be beneficial for the stakeholders to invest in such a company and offering recommendations and/or corrective actions to take in case of any untoward developments in the company.
As an equity research analyst, you might work on industries like Oil and Gas, Metal, Information Technology, Automobile, Financial Services, Infrastructure, Pharmaceuticals and Consumer durables.
In some companies, there is a dedicated industry analyst who will work on the assigned industry and provide the analysis.
However, as an analyst you should be aware of industry dynamics and hence, it is important to know how to do industry analysis.
