Bargain Buys Value Model

• This smallcase seeks out companies experiencing earnings growth as well as margin growth.
• Return on capital employed (ROCE) indicates how much profit each Rupee of capital employed in the business earns. Higher the ROCE, more efficient the company is in managing it’s capital. This smallcase only selects companies that have high ROCE, that is trending up.
• Efficiently managed growing companies, command high valuations. Hence these companies are often not fairly priced. The theory of not over paying holds good in case of such growing companies as well.

Investing in this smallcase provides exposure to efficiently managed growing companies that are undervalued.