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IOP V2 Strategy November 2019

Investment Objective
The Strategy aims to generate long term capital appreciation by creating a focused portfolio of high growth stocks having the
potential to grow more than the nominal GDP for next 5-7 years across and which are available at reasonable market prices.

Key Features
1. Small cap oriented portfolio investing in companies with high growth profile
2. Identifying companies in their early stages which have the potential to become midcap or large cap, thus resulting in
wealth creation
3. Around 50% of the portfolio is in small cap and the balance is in large cap and midcap
4. Newly ideated portfolio in 2018 amidst difficult market conditions, yet giving an outperformance of 9.1% (CAGR) over the
benchmark
5. High quality concentrated portfolio of 22 stocks

Portfolio Attributes
1. Index agnostic: ~94% away from benchmark Nifty Smallcap 100
2. The portfolio is a play on the BFSI, Agriculture, Pharmaceuticals and Consumer Discretionary Sectors
3. For Q1FY20, IOP V2 delivered earnings growth of 10.9% (excluding JK Lakshmi Cement) vs negative earnings growth (-)
28% for the Nifty Smallcap 100 Index (weighted average ex of JK Lakshmi Cement has been taken as the growth % for
the same is high and results in abnormal weighted percentage)
4. Portfolio earnings have maintained their trajectory, the prices have corrected in the past one year on account of the
broad based selling in the small cap segment

Portfolio Actions in last 6 months


Companies Added: ICICI Securities, Reliance Industries

Top 10 Holdings & Sectoral Allocation

Scrip Names % Holdings NBFC 21.0


Electricals & Electronics 13.6
Cholamandalam Investment & Finance
9.6 Agriculture
Company 12.2

Reliance Industries 8.6 Infotech 9.2


Oil and Gas 8.6
Larsen & Toubro Infotech 7.6
Pharmaceuticals 6.2
Godrej Agrovet 7.4
Retail 5.5
KEI Industries 5.5
Real Estate 5.4
Bata India 5.5 Cement 5.2

Sobha 5.4 Auto & Auto Ancillaries 4.8


Construction 3.8
JK Lakshmi Cement 5.2
Shipping 2.8
Bajaj Electricals 5.2
Restaurants 0.8
Ipca Laboratories 5.1 Packaging 0.6

Disclaimers and Risk Factors


IOP V2 Strategy Inception Date: 5th Feb 2018; Data as on 31st October 2019; Data Source: MOAMC Internal Research; RFR – 7.25%; *Earnings as of June 2019 quarter and market price as on 31st October 2019;
Source: Bloomberg consensus, Capitaline and Internal Analysis; Please Note: The above strategy returns are of a Model Client as on 31st October 2019. Returns of individual clients may differ depending on time of
entry in the Strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Returns below 1 year are absolute and above 1 year are
annualized. Strategy returns shown above are post fees & expenses. The stocks forming part of the existing portfolio under IOP V2 Strategy may or may not be bought for new client. Name of the PMS Strategy does
not in any manner indicate its future prospects and returns. The Company names mentioned above is only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC.
IOP V2 Strategy November 2019
Performance Since Inception
IOP V2 Strategy Nifty Smallcap 100
9.5 IOP V2 Strategy has
4.3 2.7 4.1 delivered a CAGR of
-10.1% vs. Nifty
Smallcap 100 returns
-0.2 of -19.2%, an
-6.3 -6.0 -5.2 outperformance of
-7.7
-11.2 -10.1 9.1% (CAGR) since
inception (5th February
-19.2 2018)
1 Month 3 Months 6 months 9 months 1 Year Since Inception

Fund Contributors (1 Year Trailing 31st October 2019)

Top 5 Contribution Bottom 5 Contribution

Bata India 4.3% Sobha -0.5%

Ipca Laboratories 2.7% Gruh Finance -0.5%

KEI Industries 2.6% Bajaj Electricals -1.3%

Cholamandalam Investment & Finance Coffee Day Enterprises -6.3%


1.8%
Company
ICICI Securities 1.2% HEG -9.1%

*Portfolio Fundamentals Market Capitalization

TTM FY20E FY21E


16.2%
PAT Growth 19% 32% 20%

RoE 21% 18% 19%


Large Cap
PE 24 20 17
51.0%
Mid Cap
Risk Ratios
Small Cap
1 Year Data Strategy Benchmark
32.3%
Churn Ratio 17.5% -
Standard Deviation 16.4% 18.5%
Beta 0.7 1.0
Weighted Average Market Cap Rs. 89,970 Crs
Sharpe Ratio -2.5 -2.1

Disclaimers and Risk Factors


IOP V2 Strategy Inception Date: 5th Feb 2018; Data as on 31st October 2019; Data Source: MOAMC Internal Research; RFR – 7.25%; *Earnings as of June 2019 quarter and market price as on 31st October 2019;
Source: Bloomberg consensus, Capitaline and Internal Analysis; Please Note: The above strategy returns are of a Model Client as on 31st October 2019. Returns of individual clients may differ depending on time of
entry in the Strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Returns below 1 year are absolute and above 1 year are
annualized. Strategy returns shown above are post fees & expenses. The stocks forming part of the existing portfolio under IOP V2 Strategy may or may not be bought for new client. Name of the PMS Strategy does
not in any manner indicate its future prospects and returns. The Company names mentioned above is only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC.