R&R STABLE GROWTH PORTFOLIO FACT SHEET AS ON JULY – 4 – 2019

(with results updated for the quarter ended 31st Mar, 2019)

FREQUENCY & OBJECTIVE

The portfolio fact sheet is prepared at the end of every quarter, after a detailed sector by sector review of
quarterly financial results.

The R&R Portfolio is built on the foundations of a solid 5x5 strategy which aims to generate a CaGR of
30-40% over a recommended 5-year investment horizon. This entails a fine blend of identifying and
investing in interminable wealth creators layered with an active oversight management; a hawk-
eyed view of change in sectoral trends, shifts in outlook and risk-reward profile.

We monitor very closely the news-flow, policy developments, corporate action amongst others; the impact
of the same on business and financials across stocks, both held in the portfolio as well as in the Equentis
Investment Universe.

R&R MODEL PORTFOLIO STATISTICS

Weights Weights
Parameters Values Sectoral Allocation
(New) (Old)
Portfolio Beta (xs) 1.12 Auto Ancillaries (incl. Batteries) 27.00% 27.00%

Portfolio Liquidity (Rs. Mn.) 2,003 Industrials 12.50% 12.50%

Consumption (incl. 2/3W, PV, Paints &

Portfolio M. Cap (Rs. Mn.) 7,49,786 19.50% 19.50%
Plastics)
Portfolio M. Cap (USD Mn.) 10,951
Chemicals 7.50% 7.50%
Portfolio Upside (15-18M) (xs) 1.36
Financial Services (incl. Private Banks,
Portfolio Upside (15-18M) (%) 35.8% Investments & Housing) 26.00% 26.00%

Portfolio Downside (15-18M) (xs) 0.83 IT (incl. software) 7.50% 7.50%

Portfolio Downside (15-18M) (%) -17.4%

Portfolio Upside (5yrs) (xs)*** 2.28

Portfolio Upside (5yrs CaGR) (%) 17.5% Total 100.0% 100.0%

Note –

1. Portfolio liquidity refers to Average daily value traded at BSE + NSE of our Portfolio for last 6 months.
2. The base year for our 5yr period is FY19/CY18 as applicable, accordingly our 5yr period stands from
FY19/CY18 to FY24/CY23.
***Our portfolio construction, targets 30% plus yearly returns. The 5yr portfolio upside/returns are rolling
targets, derived by continuous monitoring of our assumptions v/s actual performance of the businesses. This
implies, that over a 5yr holding period, at 30% plus yearly returns, it compounds to ~5xs appreciation of the
investments.
 PORTFOLIO CHANGES DURING THE QUARTER

Sector Stock In Weightage (%) Stock Out Weightage (%)

Financial Services (incl. Private Banks, IndusInd Bank Ltd. Piramal
7.50% 7.50%
Investments & Housing) Enterprises Ltd.
TOTAL PORTFOLIO CHURN 7.50% 7.50%

REMARKS

Any change in our investment thesis, narrowing of valuation gap, better risk-reward profile in other
investment opportunities, portfolio balancing for sector weights, would warrant change in weightage
and/or ownership of existing stocks in the portfolio. It will be reasonable to assume that the portfolio could
see a churn of 3-5 names each year.

COMPANY WISE TARGET PRICES AND RISK

15-18M 15-18M 5 yr.

Weights 15-18M Tgt 15-18M 5 yr. Tgt
Company Name CMP (Rs.) Downside Downside Absolute
(%) Price (Rs.) Upside (%) Price (Rs.)
Risk (Rs.) (%) Upside (%)
Asian Paints Ltd. 7.00% 1,360 1,651 21% 1,156 -15% 2,559 88%
Bajaj Finance Ltd. 7.00% 3,731 4,147 11% 3,358 -10% 6,380 71%
Balkrishna Industries Ltd. 6.50% 752 935 24% 676 -10% 1,640 118%
Deepak Nitrite Ltd. 7.50% 306 466 52% 276 -10% 906 196%
HIL Ltd. 6.00% 1,595 2,866 80% 1,356 -15% 4,911 208%
L&T Finance Holdings Ltd. 5.50% 120 180 50% 108 -10% 305 154%
Larsen & Toubro Ltd. 7.00% 1,572 1,913 22% 1,415 -10% 2,549 62%
Maruti Suzuki India Ltd. 7.00% 6,542 8,661 32% 5,888 -10% 13,905 113%
Minda Industries Ltd. 7.50% 314 422 34% 267 -15% 804 156%
Motherson Sumi Systems Ltd. 6.00% 127 169 33% 108 -15% 323 155%
IndusInd Bank Ltd. 7.50% 1,494 2,187 46% 1,270 -15% 3,587 140%
Radico Khaitan Ltd. 6.50% 305 506 66% 260 -15% 1,007 230%
Tata Elxsi Ltd. 7.50% 914 1,141 25% 732 -20% 2,133 133%
The Federal Bank Ltd. 6.00% 109 146 34% 87 -20% 193 77%
Ultratech Cement Ltd. 5.50% 4,645 5,965 28% 3,948 -15% 7,487 61%
Note: CMP is as on 4th July, 2019.
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