Nifty_SM100

The portfolio begins with a universe of liquid, fundamentally strong companies listed on the NSE, typically within the top 250–300 companies by market capitalisation, along with select large, mid &amp; small-cap companies that play a meaningful role in India’s emerging technology ecosystem. The universe focuses on companies that are directly building or enabling the country’s technology and digital infrastructure, across segments such as: IT Services &amp; Enterprise Technology Integration: Companies helping enterprises adopt advanced technologies through software services, cloud migration, automation, and digital transformation. Engineering R&amp;D &amp; Semiconductor Design: Firms involved in chip design, embedded systems, electronics engineering, and product development supporting next-generation computing systems. Data Centre &amp; Digital Infrastructure: Companies building and operating the physical infrastructure required for large-scale digital and cloud workloads. Network &amp; Connectivity Infrastructure: Firms enabling high-speed digital connectivity through fibre networks, telecom infrastructure, and cloud platforms. Electronics Manufacturing &amp; Deep Technology: Companies involved in electronics manufacturing, hardware systems, and specialised technology platforms. Within this universe, companies are further evaluated based on revenue exposure to technology-led demand, strong balance sheets, sustainable return ratios (RoCE/RoE), and leadership within their respective segments.

Our research framework combines structural theme analysis with bottom-up company evaluation. We begin by tracking long-term technology trends shaping India’s digital economy, including enterprise technology adoption, semiconductor design, cloud infrastructure, data centre expansion, and electronics manufacturing. Within these sectors, we identify companies that are positioned to benefit from rising technology spending and digital infrastructure investment. Each shortlisted company undergoes detailed financial analysis across key metrics such as revenue growth visibility, margin sustainability, capital efficiency (RoCE/RoE), balance sheet strength, and valuation relative to industry peers and historical ranges. In addition to financials, we evaluate business positioning and technological relevance including engineering capabilities, client concentration in technology-led industries, participation in global supply chains, and the ability to capture emerging demand from digital transformation. We also track management commentary, earnings transcripts, order pipelines, and industry developments to validate forward growth visibility. This process helps identify companies that are not only financially strong but also strategically positioned within India’s expanding technology ecosystem.

Stocks are selected from the defined universe using fundamental quality and sector relevance filters. Screening parameters include consistent revenue growth, healthy operating margins, RoCE/RoE above industry averages, and manageable leverage levels. In addition to financial strength, we prioritise companies with meaningful exposure to technology-driven demand, such as digital infrastructure expansion, enterprise technology adoption, semiconductor design, and electronics manufacturing. We also assess competitive positioning and business durability, including client concentration, order visibility, engineering capabilities, and participation in global technology supply chains.Companies operating in segments benefiting from long-term structural tailwinds such as cloud adoption, data centre expansion, digital infrastructure investment, and electronics manufacturing growth are given priority. This ensures the portfolio includes companies that combine strong fundamentals with strategic positioning within India’s expanding technology ecosystem.

Weights are assigned based on a blend of conviction and risk management. While higher weights are given to companies with stronger fundamentals, sectoral leadership, and rerating visibility, we maintain diversification by capping single-stock exposure. No individual stock exceeds 15% of the overall portfolio at the time of inclusion. Sector exposure is also consciously balanced to avoid concentration risk while maintaining thematic alignment with the portfolio’s core thesis.

This smallcase has a quarterly rebalance schedule. Once every quarter, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next quarter

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