Catching the right cycle
We position capital ahead of economic and industry cycles, where risk-reward is most asymmetric.
Earnings growth and valuation re-rating phase
Identifying the right
promoters (owner-operators)
We back promoters who behave like long term owners because sustainable compounding begins with credible stewardship.
Promoter Evaluation Framework
Capital Allocation Discipline
Avg RoCE above cost of capital across cycles
Minority Shareholder Treatment
Simple structures, clean disclosures, limited off-balance-sheet risk
Balance sheet Prudence
Moderate leverage, cash flows over reported margins
Decision-making under stress
Rational reallocation during downturns, not value-destructive defence
Alignment of Interests
Meaningful ownership and long-term skin in the game
Promoters are evaluated by behavior over time, not narratives is in favorable cycles.
Risk Management Process
Risk management is embedded at every stage of our investment process, not treated as an afterthought.
Supporting Investment Lenses
Alongside our core philosophy, we continuously monitor a set of supporting factors that help sharpen timing, risk assessment, and portfolio positioning.
- Industry inflection points that alter competitive dynamics
- Earnings and margin recovery signals indicating improving business quality
- Capital cycle and policy shifts that reshape supply, demand, and returns
These lenses help us participate early in opportunities while avoiding late-cycle excesses.
CATCHING THE NEXT CYCLE
What Is The Opportunity?
01
We are agnostic Growth/Value Tags - Oppotunistic in nature
We do not anchor portfolios to predefined styles. Capital is deployed where the expected return justifies the risk, whether emerging from growth inflections, mispriced quality, or cyclical recoveries
02
We are Market Capitalization Agnostic - Allocation based on core fundamentals
We invest across large, mid, and select small-cap companies where business quality, governance, and valuation converge.
03
We are conscious about not overpaying for any Business
Even exceptional businesses can deliver poor outcomes if acquired at excessive valuations. We seek a margin of safety by aligning price with long-term earnings potential.
04
Purposeful thinkers when it comes to making investment decisions - Remain invested as long as the thesis is valid
We are not married to our positions and remain invested as long as the original thesis remains intact. Our stocks don’t know that we own them.
05
We believe in a basket approach to capitalize on opportunities in India
Our investments fit into baskets like cycle plays, shift (promoter/segment/capital allocation), stable compounders, high growth but optically expensive and pre-ipo opportunities with a pre-defined weight range assigned to each allocation in a basket.
Basket Approach
5-7% Allocation
Cycle Plays
HDFC Bank | Northern Arc | IIFL Finance | Shyam Metallics | Borosil Renewables
3% Max Allocation
Shift Basket (Promoter/Segment/ Capital Allocation)
Wockhardt | Panacea | Tanfac | Tega Industries
4-5% Allocation
Stable Compounders
Shriram Piston | Sundaram Fastners | Happy Forging | VST Tillers
5% Allocation
High Growth but optically expensive
Ami Organics | SKF | Craftsman | Sansera Engineering
2% Max Allocation (Exited)
Pre IPO Investments
Environ Infra | Exicom Telesystems
What Do We Avoid ?
- In Companies
- In Investing
In Companies
Hot stocks or concept stocks
Businesses that we do not understand
Expensive valuations
Promoters with corporate governance issues
Leveraged companies/promoters
In Investing
Forecasting the markets
Investing on the basis of technical analysis
Churning the portfolio
Following the herd
