• We invest in businesses which can generate high return on capital by creating and sustaining the competitive advantages in their respective industries.
  • Meaningful allocation to best investment ideas, as asset allocation accounts for 80-90% of investment performance.
  • We invest in strong and profitable businesses run by smart and credible managements at market prices well below what we feel is its intrinsic worth.
  • We also strive to embody the spirit of continuous learning and improvement by paying close attention not only to results but, perhaps more importantly, to process, and in this way remain flexible and innovative.

INVESTMENT PROCESS:

1 Screening : Filter stocks based on state of art screeners that we have developed internally and shortlist stocks which fits our criteria.

2 Company analysis: Post the screening process; we study the business model of the company, here we analyze for competitive advantage, earnings potential, potential threats from disruptions.

3 Construction of financial models Using the financial data of the company we prepare an earning model of the company and project the companys earnings in future. If the investment looks exciting at this stage then we proceed to the next stage.

4 Channel checks and plant visit; and management meet At this stage we move from desk research to ground research and try to verify and testify in blood and flesh. This step helps to gauge the authenticity of the companys claims. Also management meeting allows us to assess managements integrity and their execution capability.

5 Valuation: if all things are ok , we value the company and post this stage we come to know whether our investment will make money and how much?

6 Investment decision: Once the investment decision is made we decide the fund allocation to the company viz : 2.5% of fund or 5% or even higher.

7 Deployment of first tranche: here we buy the stock for first time at a pre-decided price.

8 Deployment of subsequent tranches: Based on the performance of the stock post deployment of first tranche the subsequent tranches are deployed.