00:00Hey bro, this is JP Morgan's office here.
00:04Yeah, go right there. 13th floor.
00:11Tia.
00:12Hi. I'm your friend interviewed with Mr. Khayya for the role of an investment bank.
00:17Please have a team. Let's take care of it.
00:21Hey, can you please let him know that I'm here?
00:41If you want to interview with Mr. Khayya for the role of an investment bank, please let him know that
00:52I'm here.
00:55If you want to interview with Mr. Khayya for the role of an investment bank, please let him know that
00:59I'm here.
00:59Let's begin. Starting with the most basic question.
01:03Question 1. Can you tell me about yourself?
01:05And you should answer,
01:07Sir, I'm a finance graduate with a strong interest in valuation, markets and financial modeling.
01:13I've always enjoyed understanding how businesses create value and how numbers tell that story.
01:20During my coursework, I worked on several case studies where I analyzed company performance and built basic valuation models
01:28that really strengthened my analytical and problem-solving mindset.
01:32I'm someone who enjoys working with data, I love thinking critically, and I love learning continuously,
01:39which is why I'm excited about starting my career in investment banking.
01:43It combines everything I'm passionate about.
01:45Analysis, strategy, and impact.
01:48Question 2. Why do you want this role?
01:49Well, it combines what I enjoy most, analyzing businesses, understanding markets, and making data-driven decisions that drive tangible results.
01:59I see this as an opportunity, not just to apply what I've learned, but to continuously grow,
02:04taking ownership of impactful projects and contribute meaningfully to the team's success and the organization's larger goals.
02:13Question 3. What are the 3 core valuation methods?
02:16The answer?
02:17Well, there are 3 core valuation methods and they are
02:20Discounted Cash Flow for Intrinsic Value,
02:23Comparable Company Analysis for Market Benchmarks,
02:26and Precedent Transactions for Deal-based Realty.
02:29Question 4. Enterprise Value vs. Equity Value.
02:32What's the difference?
02:33Well, Enterprise Value or EV reflects the total value of the company's operating assets,
02:38the value to all capital providers, which is debt plus equity holders.
02:43Equity value represents the portion attributable only to shareholders, which is EV minus net debt, also called debt less cash.
02:51Question 5. What is the situation with an IPO in global markets? Where does India stand?
02:57Now, globally IPO markets have seen selective recovery.
03:00The US and Europe are witnessing cautious optimism with investors prioritizing profitability and sustainability.
03:07India, however, continues to outperform driven by strong domestic liquidity, robust retail participation,
03:15and a healthy pipeline of tech and manufacturing listings.
03:19Question 6.
03:20EBITDA rises but free cash flow falls.
03:23What's happening?
03:24If EBITDA is rising but free cash flow is falling, it likely means non-operating cash outflows are increasing,
03:31like higher capex, increased taxes, or a build-up in working capital.
03:36So, the core operations are improving, but cash isn't converting as efficiently.
03:41Question 7.
03:42Which automobile company had a de-merger in October 2025 in India?
03:46In October 2025, Tata Motors completed the de-merger of its passenger vehicles and commercial vehicle businesses into separate listed
03:56entities.
03:56This move aims to unlock value, enable focused growth strategies, and attract category-specific investors.
04:04Question 8.
04:05If interest rates increase, what happens to valuation?
04:10Higher interest rates raise discount rates which reduces present values.
04:16So, valuations fall.
04:17Also, higher yields make equities less attractive versus fixed income, compressing market multiples.
04:24Question 9.
04:25Walk me through a merger model.
04:27You know, top level.
04:28Start with purchase assumptions, price, synergies, and financing mix.
04:33Next, combine financials of target and acquirer, adjust for synergies, deal costs, and new interest or shares issued.
04:42Then, analyze accretion or dilution by comparing the acquirer's post-deal EPS versus pre-deal EPS.
04:50Question 10.
04:51Two firms merge and the combined PE is lower than both.
04:55What does that feel?
04:56That's EPS dilution.
04:57The acquirer likely overpay, use too much debt, or the deal creates limited synergies.
05:04It signals the market expects lower value creation or higher risk post-merger.
05:09Question 11.
05:10A company announces a profitable acquisition, but its share price drops.
05:15Why?
05:15Markets trade on perception, not just spreadsheets.
05:18Even if a deal looks good on paper, investors may react negatively due to fears of overvaluation, dilution, integration risks,
05:27or cultural mismatch between companies.
05:29Question 12.
05:30Where do you see yourself in 5 years?
05:32Well, I see myself growing into a well-rounded finance professional who not only leads projects, but also mentors junior
05:40team members and contributes to key strategic and financial decisions within the organization.
05:46Over time, I aim to take on greater responsibility, strengthen my expertise, and play a role in driving long-term
05:53business growth.
05:54Question 13.
05:55You have 60 seconds.
05:57Pitch a stop.
05:58Now this is your finale.
05:59Industry trend.
06:00Company mode.
06:02Valuation view.
06:03Conviction.
06:04Structure your answer in that order always.
06:07This is how you can answer this question.
06:09Well, I like Tata Motors because it's positioned at the crossroads of two major trends.
06:15The shift towards electric mobility and the global recovery in the auto sector.
06:20The company has a strong brand, integrated supply chain, and leadership in both passenger and commercial vehicles, which gives it
06:28a durable competitive mode.
06:30From a valuation standpoint, it's still trading below its intrinsic value compared to global peers, despite steady margin expansion and
06:38improving free cash flows.
06:40Over the next 12 to 18 months, catalysts like the EV segment's growth, the recent de-merger unlocking value, and
06:47strong domestic demand could drive a re-rating.
06:51In short, a strong story, sound fundamentals, and visible triggers make it a compelling thing.
06:57Now imagine being able to do this confidently, backed by real data, deep research.
07:02That's exactly what you'll master in our investment banking operations program.
07:06You'll learn how markets and products work, run end-to-end trade life cycles across equities, fixed income and derivatives,
07:14handle settlements, and master the core of day-to-day investment banking operations.
07:18Built by industry experts, the program takes you from fundamentals to specialized pathways, with hands-on simulations, case studies, soft
07:27skills training, and mock interviews shaping you into a job-ready IB operations professional.
07:33If this is something that interests you, click on the link in the description below to connect with our expert
07:38career counselors today.
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