Products
Value Portfolio
You invest in uncommon, underpriced stock with future potential. They are your black horses.
About the Product
Value Portfolio construction involves identifying cheap stocks that are out-of-favour, such as cyclical stocks that are at the low end of their business cycle. The value portfolio will be primarily determined comparing the intrinsic value of stock calculated using DCF/ ECF method and present market price. Value stocks tend to have higher intrinsic value than market price and also have lower price-to-earnings ratios and potentially higher dividend yields than the overall market. These potentially higher yields tend to cushion value stocks in down markets while certain cyclical stocks will lead the market following a recession.
Objectives
The products aims to capture stock having long term value as they have potential to grow tremendously in the future.
Investment Selection Process
Bargain identification: Companies whose stock looks undervalued compared to their earnings expectations and industry competitors are identified by means of intrinsic stock valuation through discounted cash flow method.
Only the undervalued stocks vis-à-vis intrinsic valuations make it through. The cheapest 10-20 stocks advance to this stage. Companies will be subject to fundamental analysis and various generally followed criteria.
Tenure
Midterm/ Long term (3 – 5 years)
Investor Profile
Investors who are bargain hunters.