SiMPL Small Cap Value Portfolio

SiMPL Small Cap Value Portfolio follows a value investing approach focused on identifying small cap companies in early stages of evolution that offer strong long term compounding potential at attractive valuations. The strategy emphasizes businesses with sustainable profits, scalable business models and strong management quality while investing with a margin of safety and long term holding period of about three to five years. The investment universe includes companies with profit levels above approximately Rs 25 crore with focus on small capitalization businesses that demonstrate strong business economics and execution capabilities. Stock selection prioritizes companies with sustainable return on equity above 20 percent with steady cash flow generation while banks and NBFC require sustainable return on equity above 15 percent. Portfolio construction follows a diversified basket approach with approximately 30 to 35 stocks to manage risk associated with small cap investing. Position sizing is determined by business risk and conviction level while maintaining patience in deployment and waiting for attractive valuation opportunities. The investment framework emphasizes predictable earnings compounding, strong balance sheet discipline, efficient capital allocation and management integrity. The strategy may hold cash when suitable opportunities are limited to maintain valuation discipline and capital preservation. Sector agnostic. Small cap focused.