ICICI Prudential PMS PIPE Strategy

ICICI Prudential PMS PIPE Strategy aims to provide long term capital appreciation by investing predominantly in mid cap and small cap companies that may be undergoing special situations or are in the midst of an unfavourable business cycle but possess strong fundamentals and sustainable competitive advantage. The strategy focuses on identifying prominent businesses with competent management and reasonable valuation using a Business Management Valuation framework which evaluates quality of business, management capability and valuation discipline to select companies with meaningful earnings growth potential and strong return on equity. Stock prices are viewed as a function of earnings growth and valuation rerating where price equals earnings per share multiplied by price to earnings, with focus on businesses capable of delivering earnings growth and margin expansion over time. The investment process begins with a broad universe of listed companies and through an in house screening process, active research coverage and application of the Business Management Valuation filtration, the universe is narrowed to a concentrated portfolio of approximately 25 to 35 stocks. The strategy seeks companies with economic moat, strong balance sheets, improving profitability and potential demand expansion across industries while benefiting from valuation rerating or margin of safety opportunities. Sector agnostic and mid cap and small cap.