Purwartha

EQUITY RESEARCH AND INVESTMENT ADVISORY

sept 2020
What Defines us ! &

Purnartha

We believe in “Vasudhaiva Kutumbakam,” that is, what we recommend to our families, we

recommend to our clients.

This maxim has guided our dealings leading to trust, commitment and familial ties with our
clients.

Since our inception, the journey of 7,500 families has been attached to ours!
The Guiding Force ea)
Dene
Rahul Rathi, our Chairman and Fund Manager
An MBA graduate from Carnegie Mellon University, USA, Rahul is an industry
veteran with over 20 years of experience in investment and risk management.
Rahul strongly believes in the credo that "In God we trust, everyone else
brings data to the table."
He believes in crunching data, analysing it and conducting in-depth research
to gauge market trends. His single-minded focus on data science and his
personal and professional legacy of creating wealth in the stock market has
inspired the firm's fundamental investment philosophy.

An IIM graduate with a PhD from Cornell University, Raghu Sundaram is the
Dean, New York University's Stern School of Business. He has worked with
major Wall Street firms and possesses an incomparable background in
derivatives and credit research, providing finesse to the equity research at
Purnartha.
Time is on our side WHY PURNARTHA SHOULD BE PART
>
a OF YOUR INVESTMENTS?
oO
© We believe in Vasudhaiva Kutumbakam-what
we recommend to our family,is what we recommend to
=> our clients
Qa
a
= We Invest in Businesses and not just buy shares.Focus
= on only 6-8 Businesses.Invest
wi
in Consumer facing businesses across sectors,who
=
e are leaders with strong brands
n
Ld Invest only after all your questions answered and not
= before..Every quarter conference call with Purnartha
z
Research Team to answer all your queries, post results
Z
< Performance fees charged only after we achieve the
e
[o4 hurdle rate, else the shortfall is carried forward to next
<x year.We charge performance fees on Post tax returns
z only.
fe
- Your investments remains in your own demat account
[oe

Wealth creation philosophy of

10x10years
100x20years
1000x30years
 Universe Building Non Negotiable Philosophy which Grows and evolve with time

We select companies that fulfill the following criteria:

Companies with minimum 11 years of operations history

Companies that have demonstrated
e Sales growth - demonstrates
¢ Volume growth - shows that
and manage scale
° Operating cash flow growth
balance sheet
consistency.
pricing power and strong brand pull
the management has customer centric products, capability to launch new products
- gives a good visibility on payment terms to vendors and suppliers, strengthening the

Companies that have grown 1.5x to 3x times the GDP growth in the past 10 years and are likely to show similar growth in
the future.

Companies that have regularly enjoyed a debt-free status and have high management holding (ensuring a lean balance
sheet, less vulnerable to fall, which otherwise happens due to high retail holding).

Companies that have lower drawdown and faster recovery (since the businesses are closely linked to consumption, they
exhibit lower drawdown in unforeseen situations and higher recovery due to the strength during drawdown).

Companies that have built a portfolio cheaper than the Index on EV/OCF basis (captures the valuations/cash flow yields - this
indicator captures business attractiveness in term of yields when compared with benchmarks like Nifty/bond /FD).

Consists of highly qualified
Chartered Accountants,
expert analysts and forensic
accountants.
Capmetrics conducted thorough
research across geographies to
identify risk. Also, one of
Purnartha’s founders Raghu
Sundaram personality of an
international repute, supports on
global perspective on economics
and finance.
Purnarthe
Team obtains on-ground
information through
background checks.
Purnartha’s research team
consistently interacts with
Thought 35-40 esteemed clients
who have volunteered to
leaders
share their professional
know-how in their
respective area of
expertise from time to
time.
 Purnartha
+ AND INVESTMENT ADYSORY

Fall and rise in the markets: the dynamics

When markets go down,

we fall too.
Min 11 years’ operating history What you buy is important;
Very important.
(@)3
Volume growth of 10% + sales
growth of 20%

How much you buy is 100x

When markets recover, we
recover faster and witha
larger margin.
Operating cash flow growth of 20%
important.
Net cash balance sheet (for a non-
financial company)
How long you hold is 1,000
Promoter’s skin in the game times important.

The power of compounding: 225 lakhs invested at 25% return grows to 2100 crores in 27 years!

FE)
 Lower Drawdown and Faster Recovery

FY Qt Q2 Q3 Q4 ANNUAL KEY STATISTICS

2009-10 51.38 10.82 692 3488 141.94 1-Apr-09 To 30-Jun-20
2010-11 257 2473 -537 621 13.54 - Macroindex 3390/2785
2011-12 7.28 -144 -298 8.05 10.84 End NAV 3824.1
2012-13 7.97 22.33 16.81 -2.76 50.03 CAGR 89.1%
NIFTY
2013-14 6.10 6.71 33.84 38.06 109.20
Annualized Vol. 22.3% FY
Qi Q2 Q3 Q4 ANNUAL KEY STATISTICS
2014-15 22.00 23.33 7.39 20.03 93.95 set 2009-10 42.04 18.48 2.30 0.92 73.76 1-Apr-09 To 30-Jun-20
2015-16 -11.17 249 258 -234 -8.79 2010-11 1.21 13.50 1.73 -4.90 11.14
Beta
2016-17. 2080 8.66 -1292 3295 51.96 2011-12 -3.19 -12.47 -6.45 14.52 -9.23
End NAV 341.0
rem |) TU om 2012-13 -0.31 8.04 3.54 -3.77 7.31

2018-19 4.15 -12.08 8.46 11.40 10.64 Recovery(Days) 2013-14 2.81 -1.83 9.92 6.35 17.98
Annualized Vol. 19.1%
2019-20 252 897 3.90 -28.82 -17.37 2014-15 13.53 4.64 3.99 2.51 26.65

2020-21 23.70 23.70 2015-16 -1,44 -5.01 -0.03 -2.62 -8.86

Beta 1
2016-17 7.10 3.90 -4.94 12.07 18.55

Performance inspite of 2017-18 3.78 2.81 7.58 10.25

2018-19 5.94 2.02 -0.62 7.01 14.93 Recovery(Days) NR

*Demonetization IL&FS Crisis, 2019-20 1.42 -2.67 6.05 -29.34 -26.03
*Surgical strikes, Budget 2019,
2020-21 19.82 19.82
*NPA Crisis Brexit
*Dewan Housing GST * FY is Financial Year i.e. April to March.
* The performance shown is before charging any fees.
» Audited report available on request.
 Absolute CAGR
Scheme Name 1 Month 3 Months 6 Months 1 Year 2 Years 3 Years 5 Years Since Inception
pererenee 01-Aug-20 01-Jun-20 01-Mar-20 01-Sep-19 01-Sep-18 01-Sep-17 01-Sep-15 01-Apr-09
To 31-Aug-20 To 31-Aug-20 To 31-Aug-20 To 31-Aug-20 To 31-Aug-20 To 31-Aug-20 To 31-Aug-20 To 31-Aug-20
Purnartha Portfolio 11.33% 35.59% -3.05% 20.92% 8.68% 12.94% 21.96% 40.20%
Benchmark
NIFTY 50 2.84% 18.86% 1.66% 3.30% -1.30% 4.81% 7.56% 12.55%
Midcap 50 9.13% 24.87% 2.63% 8.81% -7.04% -0.51% 8.31% 13.09%

Absolute Returns
Investment Date Purnartha Nifty
PURNARTHA NIFTY 04-Sep-19 14.21% 5.46%
Date of Absolute Absolute 01-Oct-19 4.11%
Inception Returns CAGR Returns CAGR 05-Nov-19 2.93%
01-Aug-14 | 450.01% | 32.86% 47.48% 6.68% 03-Dec-19 0.20%
03-Aug-15 | 142.45% | 19.37% 33.45% 5.94% 07-Jan-20 0.06%
04-Aug-16 | 67.81% | 13.81% | 33.27% 7 AA% 04-Feb-20
01-Aug-17 | 28.51% | 872% | 13.00% | 4.15% 03-Mar-20
08-Apr-20 41.60%
2.29%
29.52%
08-Aug-18 05-May-20 32.20% 22.53%
06-Aug-19 17.68% 17.68% 4.83% 4.83% 02-Jun-20 18.46% 15.89%
07-Jul-20 7.16% 5.80%
05-Aug-20 6.84% 2.63%
 Name

Telephone No

Email ld
Purwartha
Pancard Photo

Aachar Card Photi

DID YOU KNOW? Purnartha is the only company in the Investment
management space to have 100%
PhotoCancelled Cheque Copy

Nominee Details This makes us the most

Plan details
No PMS/AIF is able to sign up due to their offline process.

Ticket size less -Rs 25 Lacs vis-a-vis Rs 50 lacs of

PMS and Rs 1 crore of AIF.
Bank Details:-
LETS UNLOCK THIS OPPORTUNITY TODAY!
Name of Entity :- Purnartha Investment Advisers
Pvt. Ltd.
A/c Number :- 624005017971 crores Assets under Advice:
Bank Name :- ICICI Bank Ltd That’s a lot of money!

Branch Name :- Bhandarkar Road Branch, Pune

client families : And that’s a lot of users.
IFSC CODE :- ICiICO006240
swift code :-" ICICINBBCTS ". Total Satisfaction!
Flexible plans to suit your goals!
Purnartha
EQUITY RESEARG} AND INVESTMENT ADWSORY

ANNUAL PLANS
PLANT PLAN2 PLAN3 PLAN4 PLANS PLANG

Annual Fee
(% of AUM)

Hurdle Rate
(Annual)

Profit Sharing
** Above 20% 20% 20% 20% 20% 20% 3 YEAR PLANS
Hurdle Rate

3 Year Fees 350% “100%

Flexible plans with a trade-off between annual
fee & profit sharing above hurdle rate

+ All plans subject to a minimum subscription fee Hurdle Rate

+ Taxes as applicable (For 3 years)
+ We follow the High Water Mark principle

Profit Sharing
(Above Hurdle Rate) 20% ~~

+ All plans subject to a minimum subscription fee

+ Taxes as applicable
« We follow the High Water Mark principle
 Purnartha

Pune Mumbai New Delhi Hyderabad

Nashik

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Chennai Kolkata Bengaluru Ahmedabad

 Pu rwartha |
EQUITY RESEARG# AND INVESTMENT AD

Thank you
Disclaimer: Purnartha Investment Advisers Pvt Ltd provides advisory services under
the brand name Purnartha. The content in this document is provided for
informational purposes only. No material should be considered as investment advice
directly, indirectly, implicitly, or in any manner whatsoever. Past performance is not
an indicator of future performance. Purnartha accepts no liability whatsoever for any
direct or consequential loss or damage arising from any use of any information in this
document. The information and content in this document are subject to change
without notice.

The data used in this presentation has been taken from sources believed to be credible.
Purnartha does not take responsibility for the accuracy or completeness of the
information. In case any dataor information from this presentation is to be used, we
request that the data be independently verified 4 before its use.