What to expect from Marcellus’ Rising Giants PMS?

This PMS intends to invest primarily in high quality mid-sized companies (less than INR75,000 crores market-capitalisation, predominantly in the INR 7,000 crores – INR 75,000 crores range) with: 1) Well moated dominant franchises in niche segments; 2) A track record of prudent capital allocation with high reinvestment in the core business and continuous focus on adjacencies for growth; and 3) Clean accounts and impeccable corporate governance. Besides the earnings growth from market share consolidation in favour of Rising Giants companies and capital allocation initiatives of these companies, we also expect to benefit from free cash compounding as these operating profits of these companies grow faster than reinvestments (working capital and fixed assets investments).

Who should invest in this PMS?

An investor with a time horizon of 3-5 years who want to invest in high quality mid-cap companies with an expected long-term compounding of 20-25% should invest in this PMS