Carnelian

Carnelian YnG PMS – Carnelian Yield and Growth Strategy PMS


Carnelian

Carnelian YnG PMS – Carnelian Yield and Growth Strategy PMS

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 26-01-2022
Number of Stocks 15-20
Alpha (1Y) 50.80%
Beta (1Y) 1.31

About Carnelian Asset Advisors

Resonating with the qualities of Carnelian (a semi-precious stone which stands for motivation, endurance, leadership and courage; it is believed to bring about prosperity and protect from negative energies), Carnelian Asset Management, an investment management firm was founded by Vikas Khemani, Manoj Bahety, Sachin Jain, and Swati Khemani to pursue their passion towards investing in the capital markets. Carnelian’s mission is to help clients create and protect their wealth in the best optimal manner through investing in equities.

Key People

Vikas Khemani CA, CFA, CS, Founder

Investment Objective

The investment objective of Carnelian YnG PMS – Carnelian Yield and Growth Strategy PMSis to offer moderate earnings growth & reasonable dividend yield with margin of safety onvaluation and hedge against inflation.

Investment Philosophy

The investment philosophy of Carnelian YnG PMS – Carnelian Yield and Growth Strategy PMSiss structured around four primary pillars.

The first pillar emphasizes the importance of Quality Business Management. This pillar underlines the significance of having a robust business administration and leadership structure.

The second pillar focuses on Growth. Within this segment, there are two key elements: Magic and Compounder. “Magic” pertains to accelerated earnings growth combined with valuation re-rating. In contrast, “Compounder” stresses the essence of sustainable earnings growth, ensuring consistent and prolonged growth over time.

The third pillar is centered on Forensic Analysis, specifically named “CLEAR”. This comprehensive analysis includes several components: Cash flow analysis, Liability analysis, Earnings quality analysis, Asset quality analysis, and scrutiny of Related party & governance issues. This approach ensures thorough due diligence and in-depth examination of investments.

Lastly, the fourth pillar is about Valuation. It accentuates the need for investments to have a reasonable valuation in relation to their growth, ensuring that investments are not overpriced compared to their growth potential. This holistic framework offers a well-rounded and comprehensive approach to making informed and strategic investment decisions.

Investment Strategy

The investment strategy of Carnelian YnG PMS – Carnelian Yield and Growth Strategy revolves around a meticulously curated portfolio. This portfolio is tailored to provide moderate earnings growth and a reasonable dividend yield, ensuring a margin of safety against inflationary pressures. Central to this strategy is the adoption of a “long only” approach that encompasses a multi-cap structure, resulting in a well-diversified portfolio. The aim here is to strategically capture both yield and growth spanning various sectors, including industrials, financials, and services.

Notably, the portfolio embraces a mix of both public and private sector companies, striking a balance in its investments. Delving deeper into the portfolio’s features, investors can anticipate a dividend yield ranging between 5% to 7%. Moreover, there’s an expected compound annual growth rate (CAGR) of earnings hovering between 12% to 13% over a three-year span. The FY24 forward Price to Earnings (PE) ratio is projected to be between 10 to 11 times, and the free cash flow (FCF) yield is anticipated to fall within the 10% to 11% bracket. Rounding off the strategy, the portfolio will comprise a selection of 10 to 15 stocks, ensuring a blend of opportunities while maintaining a focused approach.

Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Carnelian Capital YnG Strategy0.80%10.60%42.30%92.60%47.50%--44.68%
BSE 500 TRI0.90%4.50%17.40%40.20%17.80%--16.68%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
Power Finance Corporation Ltd 10.60
Hindustan Aeronautics Ltd 10.40
ITC Ltd 9.60
Bajaj Auto Ltd 9.30
Neyveli Lignite Corporation Ltd 8.20
CESC Ltd 7.20
HCL Technologies Ltd 6.60
NTPC Ltd 5.10
Phillips Carbon Black Ltd 4.90
Oracle Financial Services Software Ltd 4.80

Sector Allocation


Holding %

Market Cap Allocation


Allocations %
Large Cap 57.30
Mid Cap 16.30
Small Cap 24.80
Cash 1.50

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 Dec 23.


Do Not Simply Invest, Make Informed Decisions

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