Our MissionWe want to create 500 Rupee Billionaires in 20 years or less using emerging moat businesses by compounding money consistently by more than 25% CAGR
|Struggling small caps/ start ups||Proven mettle companies small and mid Young companies||Mature companies||Waiting for disruption|
|Revenue||Fluctuating||Steadily and rapidly growing||Stable – small or no growth||Stable or declining|
|Operations history||No or bad||Consistent for at least 2-3 years||Long||Very long|
|Source of growth||Entirely future hope||Catalyst in place and very next few quarters growth||Been growing for long and slowly growing||No growth|
Five characteristics to look for while chosing potenial business to invest in
Management Integrity, high shareholding , better reputation, Changes in shareholding patterns.
Consistency in Revenue , EBIDTA , Profit Growth , ROE , ROCE and Margins.
Business Scaleability, sustainability, market shares, product pricing powers, Durable competitive advantage.
Corporate Governance : Accounting redflags, promoter track/reputation records, Third party transactions , tax and dividends.
Are Big investors, FII , DII interested in these stocks? Buying interest.
Valuations ? Unless attractive price that can give at least 3X in 4years.
The Goal is to create great wealth for our clients with consistent high CAGR in coming 2-3 years using the 5GCPM framework, which is proprietarily developed, practiced and enriched on a continuous basis.
- Only 12-14 stocks in portfolio. Higher the conviction, higher is the allocation.
- Mostly Midcap category stocks ranging from MCAP 2000 cr to 70000 cr Market cap.
- Only extraordinarily convincing great quality small caps.
- Criteria : Companies with ongoing or about to do for next several quarters 10% plus sales growth & 25% plus profit growth
- Return on equity/Capital of 18% plus ,Companies with higher Operating cash flows to Profit ratios, Lower cash conversion cycles , Less requirement of working capital.
- X factor : The business growth catalyst factor that makes company to shift its trajectory path upwards in terms of its sales, profits , margins, size and market capitalization. This factor makes a regular good company or decent size company to become significant bigger company.
- Only when your midcap becomes large cap, large returns are possible.
- Buy companies which will be part of Nifty or Nifty next 50 companies in coming years instead of just Nifty companies.
The larger Universe
- Food companies
- Speciality Chemicals
- Niche high advantage Pharmaceuticals
- Proprietary Software Technology
- High growth consumption brands
- Profit making platform companies
- Auto Ancillaries
Most important decision is when to exit : MAGIC formula
- Management deviation
- Absence of further growth factors ahead
- Change in broader industry dynamics
- Visible signs of company decline.(market share, mind share, image, competition attraction,
- Partial profit booking as and when required
- Better opportunity
- Two quarters performance review