Investment Philosophy - Equity

 No shooting from the hip
Our tried and tested Research and Investment process gives clients with a long-term investment philosophy a channel that outperforms on the Upside and limits the Downside

 Our stock selection process

Clients get best of bottom up ideas with a risk control measurement for each sector < 40 stocks

Portfolio of stocks with broad exposure to various sectors.
Reflecting three broad themes: domestic consumption, exports and infrastructure

Regular meeting to review ideas and approve value stocks for the database. 100 stocks

Analysts study stocks in their sector in India and globally > 200 stocks

< 20% of the stocks we cover, meet our "Buy" Criteria

 Our Our investment criteria - Value
Evaluate:

  • the business of the company,
  • the environment in which it operates,
  • the management, and their long-term goals,
  • can the financials support the long-term goals?

    Analyze:

  • the stock price based on fundamentals relative to its peer group, its history, and the market.
  • PER, PCF, P/BV, Div Yld, EV/EBITDA

    Buy

  • Current price is 40% < our estimate of long-term value

    Sell

  • Current price is > our estimate of long-term value
  • Changed view of management
  • Changed view of business

     Portfolio construction

  • Stock has to be under active coverage, average daily trading volume of US$ 1 million
  • Strict adherence to Buy / Sell limits.
  • We are indifferent to whether a stock we own is in the BSE-200 Index or not.
  • We do not make sector calls. We make stock calls that lead to certain sector weights.
  • The minimum holding in any one stock is 2% and the maximum is 6%.
  • With a range of 25 to 40 stocks our average holding is 2.5% to 4.0% per stock.

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