Our endeavor is to generate medium to long-term capital growth (3-4 years) by identifying undervalued stocks and those with growth opportunities from a select list of well researched stocks.
We look at identifying stocks based on the below parameters.
Opportunity: Invest in businesses operating in sectors / industries that have huge addressable market and are growing at a faster rate than the economy. Also, the growth of the businesses / sectors should sustain over longer period of time
Longevity/Scalability: Identify businesses that are scalable and have sustainable competitive advantage through entry barriers, such as technology and processes, access to natural resources, brands and distribution network, and have visibility of earnings for next 2-3 years
Management: Invest in businesses where the management has both intellect and integrity, and have demonstrated innovative thinking. Also, seek out leaders whose objectives are aligned with shareholders and whose ambitions are in line with ground realities
Value Accretive: Focus on businesses that consistently generate returns better than their cost of capital, derive significant return on incremental capital and produce positive free cash flows from their operations
Emerging Themes: Focus on Identifying Emerging Stocks / Sectors which have potential to deliver growth over the long term