Name: Centrum Emerging Champions of India
Brand: smallcase
SKU: CIAMO_0001
Price: 154217 INR

Centrum Smallcase- Start small. Dream BIG!

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Centrum Emerging Champions of India

Saptarshee Chatterjee

Emerging companies with leadership traits, superior RoCE and good management quality,3-5yrs horizon

Universe is screened by our dual criteria where the companies having superior RoCE and superior EBITDA growth along with strong corporate governance and high quality managment.

Centrum focuses on companies with defined leadership traits, such as - high and rising market share, high growth, strong moat and pricing power, high RoCE, brand/distribution strength, technology/R&amp;D edge.&nbsp;In our search for leadership traits, we have developed a proprietary framework named:&nbsp;E&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E&nbsp;This framework is backed by detailed fundamental research and backtested for past 20+ years. Over this time frame the framework has outperformed 80% of the times.&nbsp;•”E” = Earnings Quality –·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15% (or higher) operating profit growth and 15% (or higher) ROCE·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;High conversion of EBITDA to OCF·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Low leverage(&lt;2x)•”D” = Deep dive research·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Size of opportunity·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competitive advantage·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scalability·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Channel checks•”G” - Governance –·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounting quality and forensics·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital allocation·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Board composition·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ESG·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend policy•”E” - Execution –·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Past track record of promise vs delivery&nbsp;The framework, supported by detailed channel checks, yields basket of stocks that offers a combination of ‘High quality’ and ‘High Opportunity’ companies available at reasonable valuation, This provides best of two worlds, meaning:&nbsp;High Quality – Established leadership traits, sustainable moats and good corporate governance. This group provides stability to portfolio returns.+High Opportunity – Companies that are ‘emerging&nbsp;leaders’ who show transformation

The research team does individual stock picking after going through company reports and financials and decides on a host of qualitative and quantitative parameters to be considered while screening stocks for the respective strategy

Following parameters are considered while assigning weights to stocks in this smallcases<ul><li>Market capitalization</li><li>Management quality and vision</li><li>Theme exposure, revenues and earnings visibility</li></ul>

This smallcase will be rebalanced on an as-needed basis

The final screened stocks are then weighted according to the selected asset allocation algorithm

Centrum Emerging Champions of India

Centrum Emerging Champions of India

Overview

Stocks