Growth companies experiencing positive earnings growth and having a reasonable margin of safety, while growing at a rate faster than the overall economy

• Generally, growth companies have a lot of investment opportunities to reinvest their earnings and not pay dividends. Fast growing business and rising earnings allow them to command high valuations
• But, everything has a fair price and irrespective of the quality of the product, one should never overpay. This rule is applicable in the case of growth companies as well
• Such companies are good investment opportunities, however because of their high valuations, it is difficult to judge whether they are fairly priced
• This smallcase is a collection of companies experiencing earnings growth and, witnessing margin improvement.
• In addition, only the companies experiencing increasing return on capital, and available at justifiable valuations are selected

You can access the asset allocation version of this smallcase with better risk-adjusted returns here