Name: Emerging Dominators plus (ED+) by Piper Serica
Brand: smallcase
SKU: PSRNM_0002
Price: 200000 INR

Our objective: Multiply wealth over a long period of time by investing in natural compounders of earnings that produce above-average absolute returns with below-average business volatility.
Our Strategy: Identify FAST GROWTH SECTORS that are benefitting from changing demographic profile and consumption patterns.
Invest in LEADERS in these identified sectors that COMPOUND earnings for a very long period of time with very little business volatility.

Nifty Midsmallcap 400

Emerging Dominators plus (ED+) by Piper Serica

Rahul Chaudhari

Achieve alpha returns by investing in a portfolio of 15-20 high-potential multi-bagger stocks.

Our selection criteria focus on companies with a market capitalization below Rs. 40 thousand crore. These are profitable, fast-growing businesses with either a dominant or significant presence in their rapidly expanding industries. They exhibit high standards of corporate governance and are led by transparent, accomplished professional managers. To maintain a balanced portfolio, the average market cap is capped at Rs. 15 thousand crore, ensuring a well-represented mix of both small and mid-cap stocks.

1.&nbsp;We start by vetting each of the stocks in our universe for their sustainable COMPETITIVE STRENGTH. We have developed a&nbsp;proprietary model that is based on the Michael Porter’s 5 Forces Model. We force-rank each of the constituent across 35 different competitive parameters. A weighted average score is arrived through these rankings.2.&nbsp;Establish a FAIR VALUATION range - We establish a fair value range for the leader using various valuation models. These models take into account margins, growth, management quality, capital allocation efficiency etc. These valuation models have been developed by us after years of application. 3. Risk Management &amp; Portfolio Allocation - The Porter model score is updated every quarter. We continuously track the model score and the valuation range to re-balance the portfolio by either skimming profits or by averaging down.

Our “Emerging Dozen Plus (ED+) by Piper Serica™” portfolio consists only of companies that have a market cap of more than Rs. 25 thousand crore, profitable, rapidly growing and have either dominant or significant presence in their fast growth industry. They have demonstrated high level of corporate governance and are managed by&nbsp;transparent and highly successful professional managers. These companies have capital light business models and have created a significant brand and market presence. They have a stable operations and processes and have committed to grow rapidly. They are using technology in an efficient manner to support rapid growth of their business.

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 has a quarterly rebalance schedule. Once every quarter, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next quarter

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

Emerging Dominators plus (ED+) by Piper Serica

Emerging Dominators plus (ED+) by Piper Serica

Overview

Stocks & ETFs