Alchemy Select Stock

Alchemy Select Stock is an equity investment strategy focused on generating long term returns through high conviction stock picking using a combination of top down and bottom up fundamental research. The strategy follows a growth investing philosophy based on the assumption that India is a high growth economy with strong entrepreneurial culture and seeks to identify companies with high growth potential, scalable business models, strong management capability and sustainable competitive advantage. Portfolio construction is intentionally concentrated with a typical portfolio consisting of about 8 to 14 stocks across sectors in order to focus on individual stock performance rather than excessive diversification which may dilute returns. The investment universe begins with about 500 companies based on market capitalisation, governance standards, long term attractiveness and return on equity profile, from which an investible universe is created through assessment of revenue growth, EBITDA growth, cash flow conversion efficiency, core return on equity and valuation parameters such as price to earnings, price to book, EV to EBITDA and discounted cash flow. Illustrative holdings include Multi Commodity Exchange of India Limited, One 97 Communications Limited, Eternal Limited, Cartrade Tech Limited, Divis Laboratories Limited, Bajaj Finance Limited, DLF Limited, United Spirits Limited, Bharat Electronics Limited and Hitachi Energy India Limited. Sector agnostic. Market cap combination of large cap, mid cap and small cap.