Himalayan Compounder is a high-quality equity portfolio designed for consistent, long-term wealth compounding using a disciplined, rule-based approach. Powered by the upgraded MAGIC 2.0 engine, it applies ~20 rigorously backtested rules to select companies with strong, stable fundamentals—typically showing ROE/ROCE above 30–40%. The strategy targets high-return, low-risk investments by focusing on robust businesses that maximize compounding and minimize downside.

Selected Rule Highlights

The portfolio is built using 20 top rules. A recurring theme is high, consistent capital efficiency (e.g. ROCE > 30% in 9 of 10 years) and strong business growth (e.g. PAT growth > 12% in 8 of 10 years).

Back-tested Performance Snapshot (3Yr CAGR)

Mean:

• Himalayan Compounder: ~21%
• Nifty50: ~15%

Median:

• Himalayan Compounder: 20%
• Nifty50: 13%

Downside Risk (MAR<0%):

• Himalayan Compounder: 0.2%
• Nifty50: 2%

Sortino Ratio (downside risk-adjusted return):

• Himalayan Compounder: 38.1
• Nifty50: 5.1

Returns >15% (Consistency):

• Himalayan Compounder: ~75% of periods
• Nifty50: ~38% of periods

Business Quality Highlights

Capital Efficiency:

• Average ROCE and ROE: ~35–45%

Growth Metrics:

• 1/2Yr PAT Growth: 14/13%
• 1/2Yr Revenue Growth: 19/16%

Valuation and RE Rating:

• Trailing PE: 25-35
• Profit Growth vs PE Re-rating contribution to returns = 60 : 40

Size & Sector:

• Sectors: Diversified, Mostly B2C
• Average market cap: ~₹1,16,000 crore