Your client Alex has Rs$\mathrm{.}1000000.$ He wants to invest in the stock market. She came to you for investment advice. She wants to invest only in one industry and seeking your advice to select the industry and two companies to invest in$.$ She also wants you to recommend the proportion of investment in the selected companies.

You are required to select two companies from the industry to calculate the intrinsic value of the companies using the Free cash flow equity model $($FCFE$)$ and relative valuation methods. Prepare a report recommending your decision for investment.

Hint:

$1.$ Based on the economic and industry analysis, forecast the cash flow for five years.

$2.$ Clearly write down the assumptions for valuation

$3.$ For relative valuation, use industry data as your benchmark. If industrial data is not available, you can use two peer companies from the same industry for benchmarking.