Munoth Fin sets up research division

Chennai-based Munoth Financial Services Ltd (MFSL) has launched an inhouse research division which aims to provide value-added services to its customers.

The move will help the company increase its customer base as well as provide enhanced services to its clients. In addition, MFSL has also updated its website, which will enable its users to access research reports along with other services.

The setting up of the research division is one of the steps taken by MFSL to increase its portfolio base from Rs 20 crore to around Rs 100 crore and double its topline from Rs 3.5 crore to Rs 7 crore in a year's time, according to Jaswant Munoth, managing director, MFSL.

MFSL is a capital market intermediary, which offers services in stock broking, depository participation, merchant banking, share transfer and portfolio management, and is registered with the Securities and Exchange Board of India (Sebi). The research team has four people and MFSL has allotted around 20 per cent of its gross brokerage on research activities.

The research division will offer broad indicators of the daily market performance, which will be available to all on the company's website, whereas analysis of industrywise or companywise performance will be available to MFSL clients.

The daily market update will include the previous day's market summary, predictions of the current day's market trends, fundamental checks on companies and technical support to investors.

"Our research division is currently tracking around 36 companies in six sectors, including capital goods, information technology, banking, pharmaceuticals, metals and petroleum. We have plans to increase the number of sectors to 12, depending on investor requirements.

MFSL will provide fundamental and technical analysis, where the fundamental aspect will indicate if investment in a particular company's shares is advisable, while the latter will provide advice as to when the investor can buy or sell his shares," Munoth said.

MFSL has four institutional clients at present, which include Oriental Insurance Ltd, United India Insurance Company, Federal Bank and Indian Overseas Bank.