Stock picking style and philosophy
Dear investor & traders 1) Buying companies with a strong business model, which are small and medium but having solid growth potential. 2) Invest in companies generating healthy ROCE, ROE, strong Operating Cash Flows, Free Cash Flows and enjoying reasonable debt levels. 3)Exploring companies which are sector leaders or the potential to become large, and which have headroom to grow significantly over the next 2-3 years, looking at the overall opportunity size for the company’s products & services. 4)look for companies which can grow consistently in terms of Top line & EBIDTA growth and where management respect shareholders & are investor friendly in terms of payouts in the forms of dividends, bonus, buybacks etc 5)Buy stocks of such companies when they are unglamorous and not in the limelight. 6)Most importantly, I believe capital preservation is more important than returns and hence apply a reasonable margin of safety filter to protect the downside if any. Hemant pa