Capgrow Capital Growth Strategy PMS


Key Portfolio Attributes

Inception Date: 01 November 2018

Number of stocks : 30-35

Portfolio Manager’s Name: Arun Malhotra

Portfolio Manager’s Experience: 25 years of experience in the Indian Capital markets across various foreign companies- has rich experience of investment in Indian stocks , compliance and business development.

Portfolio Manager’s Qualification: executive MBA from FMS Delhi during 1997-2000 full-time two-year M.B.A (2001-03) from - Simon Business School, University of Rochester, New York.

Investment Objective

Generate Performance by investing in growth but not at a cost of valuations. Also willing to buy businesses, that have slower growth, but at right price. Focuses on the research process and methodology in selecting stocks.

Investment Philosophy

• Strongly believes in market/economic cycles and tries to capture the returns after understanding where we are in the cycle. While short term fluctuations do give opportunities to entry quality stocks at the right price, ensuring enough margin of safety. Long term investing is essentially buying stocks at steep discounts to their intrinsic values and staying invested through various market cycles.

• Is essentially a value investor in growth businesses and follows a focused approach of 20-25 stock portfolio

• Believes that growth alone doesn’t derive investment decisions. Value is added when one buys a stock at a discount to its intrinsic value

• The mantra is that stock performance is facilitated by the presence of a catalyst; companies do not operate in a vacuum and both micro and macro factors are critical in determining outcomes.

• The Companies (both in the listed and private space) are also analysed for comparative purposes.

• The financial statements for last 10 years of companies that stand out in terms of their competitive advantage are analysed and financial projections are made for next 5 years.

Investment Process

• Industry analysis: Size of Opportunity, Number of Competitors, Current and historical capacity utilization of the industry, sectoral growth rates, threats of substitutes to the industry, any regulatory threats etc.

• Company analysis: Moat, Leader in their businesses, networking effect, Margin analysis, cost competitiveness, source of growth for the company, decoding margins and operating leverage in the business, capital efficiency (ROE + ROCE).

• Cash Flow analysis: DCF, balance sheet analysis (avoid debt/highly leveraged companies, contingent liabilities).

• Strong corporate governance: Very is very critical

• Other Parameters: Promoter’s pledge, their other businesses if any. Past Dividends and corporate events, equity dilutions.

• Valuations: DCF, EV/EBITDA, P/E, deal multiple valuations.

Finally, the price which one pays for the stock is a function of all the above parameters. Follows highly focused and research driven process to select stocks in the portfolio

Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
CapGrow Capital Growth-2.18%-6.18%-0.18%23.63%9.35%12.82%11.44%12.26%
BSE 500 TRI0.86%4.49%17.40%40.16%17.84%19.30%17.40%18.52%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
HDFC BANK LIMITED 10.17
PIRAMAL ENTERPRISES LIMITED 7.51
ZEE ENTERTAINMENT ENTERPRISES LTD 7.00
EPL Limited 6.52
ICICI BANK LIMITED 6.40

Sector Allocation


Holding %
BFSI 35.37
CONSUMER 15.09
Pharma 14.36
Chemicals 8.52
Media 7.00

Market Cap Allocation


Allocations %
Large Cap 55.69
Mid Cap 17.00
Small Cap 21.85
Cash 5.46

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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Disclaimer

#Returns as of 31 Mar 2024. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Sep 21.


Do Not Simply Invest, Make Informed Decisions

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