Name: Defence Picks - AI Model
Brand: smallcase
SKU: SCMX_0002
Price: 39140 INR

SEBI registered research analyst creating Thematic & Quantamental curated stock/ETF portfolios. Data analysis is the heart and soul behind our portfolio construction & with 50+ offerings, we have something for everyone.

Nifty 500 Index

Defence Picks - AI Model

Windmill Research

Companies positioned to gain from India’s strategic focus on defence, selected using AI

All publicly traded companies on the National Stock Exchange of India, which rank in the top 1000 by market capitalization, are included in the universe.

<ul><li>India’s defence sector is going through a significant change, driven by strong policy support, local manufacturing, and rapid technological advancements. The ecosystem includes manufacturing of aircraft and equipment, defence communication and electronics, mobility systems, materials and machinery, explosives, missiles, training solutions, and shipbuilding. Domestic production and exports are increasing, supported by a solid investment pipeline in aerospace, naval, and missile platforms&nbsp;</li><li>This curated portfolio focuses on companies with a dominant or rising presence in the defence sector. Using our proprietary AI-based algorithm, we screen the top 1000 companies by market capitalization to identify and select companies that are heavily focused on&nbsp;defence-related sectors—such as aerospace systems, military mobility solutions, defence electronics, explosives, strategic shipbuilding&nbsp;etc</li><li>We then refined this list by evaluating how significantly the defence business contributes to each company’s overall revenues, ensuring our theme is true to label and companies selected by us are pure plays to invest in this theme. Finally, to build a high-quality and performance-oriented portfolio, we select the final list based on valuation and price strength factors. The result is a well-researched set of stocks that offer focused exposure to India’s growing defence sector</li></ul>

<ul><li>Stocks/ETFs qualifying the above-mentioned research criteria are selected for further analysis</li><li>Proprietary liquidity filters are applied to remove illiquid stocks/ETFs from this list</li><li>A special check is further applied to remove stocks, where a significant part of the promoter holdings are pledged</li><li>Stocks/ETFs are further removed based on red flags such as the stock’s presence in the ASM/GSM list of the exchanges, deep negative news or sentiment, etc</li></ul>

The final list of selected stocks is weighted using a proprietary drifted weight algorithm, subject to maximum concentration constraints on each individual constituent. Launch weights are initially set to be equal

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

Defence Picks - AI Model

Defence Picks - AI Model

Overview

Stocks & Weights