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.

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.

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.