Nippon India – Emerging India


Key Portfolio Attributes

Inception Date: 7th March 2017

Number of Stocks : 20-25

Fund Manager Name: Varun Goel

Fund Manager Experience:11 years

Fund Manager Qualification: MBA – IIM Lucknow, Mech Engg from IIT Dehi

Portfolio Construct

  1. Mid Cap portfolio of high growth emerging businesses that are existing / potential leaders in their field of operations
  2. Benchmark agnostic concentrated portfolio of our top 15 – 25 ideas
  3. Investments are made with a 3 year plus Buy & Hold view
  4. Bottom-up stock picking resulting in a Unique & Differentiated Portfolio

Key Investment Themes

Investment Philosophy

The endeavor is to create wealth for our investors over a medium to long term period by creating Benchmark Agnostic Concentrated Portfolios of quality stocks, based on fundamental research driven Bottom Up stock picking.

BOTTOM UP APPROACH

Nippon India believes that in all market conditions and across all capitalizations, there are stocks which may outperform. Hence, their Focus is on identifying such stocks, within the chosen sectors. Sectoral trends and macroeconomic research is used to identity macro trends / sectoral opportunities. The Conviction in their stock picks come from rigorous bottom up fundamental research. Fundamental Research involves study of historic track record, trends and future earning estimates through the lens of “Must 5” Quality framework.

The Assessment is based on Earnings Growth, Operating Leverage, Demand Environment, Margin Expansion, and Financial Leverage. Assessment also includes Senior Management Interaction, Key Customer, Suppliers feedback, Competition feedback, Key Stakeholders Interaction.

Post identification of stocks based on rigorous fundamental research, they identify reasonably priced stocks, based on Valuation gap analysis

  1. Historical Vs Current valuations
  2. Peer Group Valuation
  3. Potential Rerating Triggers

Investment is made in stocks with the Highest Conviction. Such companies tend to weather sector declines. Their endeavor is to benefit from the early identification of an investment idea; where there is higher potential for outsize returns

MUST 5 FRAMEWORK




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio-5.8%-3.0%-9.8%6.0%42.4%18.4%11.3%-12.2%
Nifty Midcap 100-5.3%0.2%-4.6%9.8%46.0%16.4%10.1%-9.8%



QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
Aarti Industries Ltd. 6.20
Mahindra Lifespace Developers Ltd. 5.40
Dr. Lal Pathlabs Ltd. 5.40
Timken India Ltd. 4.90
Sonata Software Ltd. 4.60
Cholamandalam Investment and Finance Company Ltd. 4.60
Oriental Aromatics Ltd. 4.60
Jubilant Foodworks Ltd. 4.50
Relaxo Footwears Ltd. 4.30
AU Small Finance Bank Ltd. 4.10
Eris Lifesciences Ltd. 3.90
Cera Sanitaryware Ltd. 3.90
Balkrishna Industries Ltd. 3.80
ABSL Capital Ltd. 3.80
Bank of Baroda 3.80
Suprajit Engineering Ltd. 3.70
Tata Power Company Ltd. 3.70
Firstsource Solutions Ltd. 3.70
Max Financial Services Ltd. 3.70
Heidelberg Cement India Ltd. 3.40
Tata Motors DVR 3.00
Affle India Ltd. 2.90
Can Fin Homes Ltd. 2.80
Mindtree Ltd. 2.60
Procter & Gamble Health Ltd. 1.50
Other Equity 0.50
Cash & Equivalent 1.00
Top 26 Equity Holdings 100.00

Sector Allocation


Holding %
Banking 8.00
Automobiles 9.00
Chemicals 11.00
Information Technology - Software 11.00
Financial Services 15.00

Market Cap Allocation


Allocations %
Large Cap 16.0
Mid Cap 40.0
Small Cap 42.0
Cash 2.0


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 May 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Mar 22.




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