Omni Bharat Defence

Primarily the stocks/securities which are exposed to the Defence growth vector. The universe shall include securities from primary as well as secondary ecosystems that are favourably impacted by the long-term growth potential effected by the growth vector and are traded on the National Stock Exchange. The universe includes the full value chain and the extensively defined ecosystem. The flexibility provided by the extensively defined ecosystem allows for a wider investment universe and significantly enhances the chances of finding mispriced opportunities while still benefiting from the growth vector.

The portfolio is based on the Scientific Investing framework which sifts through the defined portfolio universe and weeds out capital destroying equities based on&nbsp;an&nbsp;analysis of the balance sheet, cashflows, growth and valuation. It curates a portfolio of capital multiplying companies with SuperNormal Profitability (economic alpha) arising from persistent competitive advantages and growth opportunities (growth alpha). A superior valuation toolkit further capitalizes on Mr. Market’s behavioral errors and selects companies available at SuperNormal Prices (value alpha),&nbsp;i.e.&nbsp;below their intrinsic values.

The Scientific Investing Framework helps building a portfolio of SuperNormal Companies @ SuperNormal Prices exhibiting the following attributes:<ul><li>Fundamental Balance sheet Strength</li><li>Persistent Competitive Advantage</li><li>Large Growth Opportunity</li><li>High Earnings or&nbsp;Cash Flow&nbsp;Yield</li><li>High Compounding&nbsp;or Growth&nbsp;rates</li><li>High Cash&nbsp;or Low Debt&nbsp;to MarketCap</li></ul>&nbsp;The Scientific Investing approach helps in reducing exposure to 3 types of fundamentally risky&nbsp;companies, viz., Capital Destroyers, i.e. companies with weak business operations and weak balance sheets, Capital Eroders, i.e. companies with&nbsp;low or&nbsp;no competitive advantages resulting in inefficient use of shareholder capital and Capital Imploders, i.e. companies which are significantly overvalued making them vulnerable to either company/sector/market/economy specific shocks. The framework helps to identify Capital Multipliers, which are companies with strong,&nbsp;typically,&nbsp;cash-rich balance sheets powering business operations with persistent competitive advantages and resources to capitalize on the potential high-growth opportunities that the company is exposed to.&nbsp;Also, these companies should be available at a significant discount to their intrinsic value.

The portfolio allocation&nbsp;can depend&nbsp;on the degree of undervaluation. Securities that have higher discount to intrinsic value&nbsp;can be&nbsp;given higher weightage and vice versa. Securities with similar discount to intrinsic value are, typically,&nbsp;&nbsp;given roughly equal weightages.

This smallcase will be rebalanced on an as-needed basis

Omni Bharat Defence Theme

Defend Bharat with an attacking portfolio.

Omni Bharat Defence Theme

Overview

Stocks & Weights

At a Glance

Holdings Distribution