Our Investment Philosophy

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India, given its growth, has historically traded at higher multiples. In our view, any investment philosophy for the Indian markets should account for the same. We do not believe value investing in India is optimal or sustainable in the long run. On few occasions, one may get companies relatively cheap on account of temporary corrections or events. However,  high growth companies or quality franchisees are generally not inexpensive in the conventional sense.

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In terms of our investment strategy, we focus on potential future profits in terms of EBITDA or PAT, generally for next 2-3 years. We use research reports/ industry reports/ company data to assess the same. Having assessed potential future profits, we use our proprietary formula to assess what a company's potential multiple could be, vis-a-vis its actual multiple. This gives us the extent of potential upside in a stock.

Besides fundamental analysis, we also back our research with technical analysis which includes a study of the stock's momentum/ trend and its Elliot wave structure. We like to buy stocks which are either within a Bull market based on charts or which could have potentially ended a bear market.

We do not mind paying a premium for growth stocks.

To summarize, we generally like to buy high growth companies which are in a strong uptrend or about to start one, at valuations which may not be inexpensive but are not un

reasonable. Sometimes one gets a value buy. But we do not tire ourselves scouting or waiting for them.