Name: Bharat Nxt 25 Model
Brand: smallcase
SKU: AAGRMO_0001
Price: 52411 INR

Ayush Agrawal (Individual) registered with SEBI as Individual Research Analyst vide Registration number INH000013013 on September 14, 2023, pursuant to which he provides research services to his clients

Nifty_SM100

Bharat Nxt 25

Bharat Nxt 25 Model

Ayush Agrawal

Bharat NXT 25: A VMEL-driven, diversified SIP basket spanning Power Transmission, IT, Pharma & more.

Our universe comprises of the Top 100, the Top Midcap 150, the Top Smallcap 250 and the Top Microcap 250 companies. A total of 750 Companies. Depending on the market cycle, we choose stocks from the above indices into our portfolio using our framework. We believe the best opportunities come from places where few people are looking. That’s where we have our edge.

Our portfolio construction is guided by a rigorous selection process using the "VMEL" framework, which helps us identify the best 20-25 companies from our universe of 750 stocks. This framework combines fundamental and technical analysis to ensure we capture businesses exhibiting robust growth triggers. 1. Value (V): Identifying Undervalued OpportunitiesWe assess companies to ensure we are investing in businesses trading at a reasonable valuation relative to their intrinsic worth. Key metrics include: P/E Ratio, P/B Ratio, Sectoral and Historical Comparisons etc. 2. Momentum (M): Riding the Market TrendsMomentum ensures our portfolio aligns with the prevailing market trends. We look for stocks that are breaking out of consolidation zones. And many more technical parameters. 3. Earnings (E): Ensuring Fundamental StrengthStrong earnings growth is a hallmark of fundamentally sound companies. Our earnings analysis includes:<ul><li>Revenue and Profit Growth</li><li>Earnings Consistency</li><li>Return Ratios</li><li>Forward Earnings Guidance etc</li></ul> 4. Liquidity (L): Ensuring Ease of TradeLiquidity is crucial for portfolio flexibility, especially during dynamic market conditions. Our liquidity assessment includes prioritizing stocks with a reasonable free float to ensure adequate market participation and other parameters.

Screening and Decision-Making Process <ol><li>Preliminary Screening: We apply the VMEL framework to the entire universe of 750 stocks, filtering out companies that do not meet our minimum thresholds for Value, Momentum, Earnings, and Liquidity.</li><li>Scoring and Ranking: Each stock is scored based on its adherence to the VMEL criteria, and we rank them to identify the top candidates.</li><li>In-Depth Analysis: The top 50 stocks are subjected to detailed qualitative and quantitative assessments, including industry outlook, competitive positioning, and risk analysis.</li><li>Portfolio Construction: We finalize upto 20-25 stocks that exhibit the highest potential for delivering superior returns, ensuring diversification across sectors and market caps.</li></ol>

It's an equal weighted portfolio. Our equal-weighted portfolio strategy is designed to optimise returns while maintaining a balanced risk profile.

This smallcase will be rebalanced on an as-needed basis

Bharat Nxt 25 Model

Bharat Nxt 25 Model

Overview

Stocks & Weights