Growth & Value Multicap Model

This smallcase focuses on identifying financially strong, low-debt companies with growing fundamentals and attractive valuations.

• First, the financial vigour of stocks is checked and only those stocks whose revenue, earnings and dividend payouts have increased in the most recent financial year are selected
• Next, companies whose debt burdens are low relative to their operating profits are selected. Low-debt companies pay low interest, which automatically boosts profitability. Such companies are relatively better off even when the business environment is facing a downturn
• In addition to this, the model incorporates a check for relatively lower valuations, so that reasonably-priced stocks are selected