Research Process

We define our investment universe based on sectors, geographies, and growth/valuation metrics to ensure alignment with our GARP strategy.

Our team conducts in-depth ground research by engaging with vendors, customers, and industry consultants to gain a full picture of each company’s market position and growth drivers. We conduct company management meetings as well.

Plant Visits

Plant visits and site tours are encouraged to validate operational strength and assess a company’s ground-level reality, allowing us to gauge execution capabilities.

Valuation

We evaluate each company using clear, company-specific valuation metrics to establish a fair entry price.

Key Metrics

We prioritize return ratios (e.g., ROE, ROIC), growth potential, and cash flow strength to ensure financial health and sustainability.

We assess each investment based on three pillars

Business

Invest wherein size of opportunity is high. The idea is to participate in themes like Consumption, Investments, Manufacturing, Outsourcing and Agri related. The fund strongly believes all these themes is wherein the size of opportunity being huge and over long term, the fund can participate through right sectors / stocks. One needs to keep an eye on possible disruption in the sector / stocks in long run given the fast-changing world.

Management

Very high comfort in terms of integrity and intellect and eye on wealth creation for shareholders. This can be evaluated and weigh open in terms of their commitment to wealth creation – which in turn is through their actions – capital allocation, capital efficiency within the sectoral character of business, focus on return ratios and hence create wealth over long term. History of the Management (wherever available) is a good barometer and guide for their future actions.

Valuation

Adequate price value gap between price we pay and value as per our assessment over long term. A clear understanding of value (as per internal assessment) over longer term will help which can be refined / reviewed regularly.

For each investment, we develop a clear rationale and arrive at a target price based on growth prospects, cash flow, and long-term return potential.