BOP Strategy October 2019

Investment Objective
The PMS Strategy will invest in a high conviction concentrated portfolio of minimum 20 stocks. The portfolio will be constructed
based on in-depth research leading to bottom-up stock picking with a view of Wealth Creation from 3 – 4 years perspective

Key Features
1. BOP is a multi-cap strategy with a balanced mix of ~60% Large Cap allocation, ~27% Mid Cap allocation and ~12% Small
Cap allocation
2. Newly ideated portfolio in 2018 amidst difficult market cycle, yet giving an outperformance of 6.7% (CAGR) over the
benchmark (since inception)
3. Multi-cap strategy following the Buy and Hold investment philosophy investing in high quality Companies
4. Focused portfolio of 22 stocks

Portfolio Attributes
1. Central themes of the Strategy are Consumer Discretionary, Insurance, Private Banks & NBFC, Agriculture, Affordable
Housing and GST Beneficiaries
2. For Q1FY20, BOP Portfolio delivered earnings growth of 14.4% vis-a-vis an earnings growth of 3% for the Nifty 500.
3. Despite having ~40% exposure to mid and small Cap stocks, the portfolio has not seen large drawdowns in the last 12-15
months. Given that the themes are in line with the current government’s vision, the portfolio seems well poised to deliver
superior returns from 3-4 years perspective
4. Portfolio is currently at trailing P/E is of 49 and ROE of 24% with high growth profile

Portfolio Actions in last 6 months

• Companies Added: ICICI Bank
• Companies Exited: Ujjivan Financial Services

Top 10 Holdings & Sectoral Allocation

Scrip Names % Holdings Banking & Finance 34.4

Hindustan Unilever Ltd. 9.1% FMCG 18.6

Bajaj Finance Ltd. 8.8% Retail 14.9

Bata India Ltd. 8.6% Agriculture 6.5

ICICI Lombard General Insurance Company Ltd. 6.6% Construction 5.8
HDFC Bank Ltd. 6.6%
Engineering & Electricals 5.5
Kotak Mahindra Bank Ltd. 5.6%
Logistic Services 4.9
Titan Company Ltd. 5.2%
Auto & Auto Ancillaries 4.0
Blue Star Ltd. 5.0%
Infotech 2.9
Container Corporation Of India Ltd. 4.9%
Tea & Coffee 2.4
HDFC Life Insurance Company Ltd. 4.7%

Disclaimers and Risk Factors

BOP Strategy Inception Date: 16th Jan 2018; Data as on 30th September 2019; Data Source: MOAMC Internal Research; RFR – 7.25%; *Earnings as of June 2019 quarter and market
price as on 30th September 2019; Source: Bloomberg consensus, Capitaline and Internal Analysis; Please Note: The above strategy returns are of a Model Client as on 30th September
2019. Returns of individual clients may differ depending on time of entry in the Strategy. Past performance may or may not be sustained in future and should not be used as a basis for
comparison with other investments. Returns below 1 year are absolute and above 1 year are annualized. Strategy returns shown above are post fees & expenses. The stocks forming
part of the existing portfolio under BOP Strategy may or may not be bought for new client. Name of the PMS Strategy does not in any manner indicate its future prospects and returns.
The Company names mentioned above is only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC.
BOP Strategy October 2019
Performance Since Inception

BOP Strategy Nifty 500

19.5 BOP Strategy has
delivered a CAGR of
12.2 5.1% vs. Nifty 500
8.1 7.9 returns of -1.7%, an
4.1 5.1 5.1
2.5 outperformance of
1.9
6.7% (CAGR) since
inception (16th January
-3.3 -3.3 -1.7 2018)
1 Month 3 Months 6 months 9 months 1 Year Since Inception

Fund Contributors (1 Year Trailing 30th September 2019)

Top 5 Contribution Bottom 5 Contribution

Bajaj Finance 4.9% Godrej Agrovet -0.5%

Bata India 4.6% Larsen & Toubro Infotech -0.5%

ICICI Lombard General Insurance Company 2.8% Gruh Finance -0.8%

Titan Industries 2.4% Exide Industries -1.8%

Hindustan Unilever 2.1% Eveready Industries India -1.9%

*Portfolio Fundamentals Market Capitalization

TTM FY20E FY21E

11.9%
PAT Growth 19% 25% 22%

RoE 24% 25% 26% Large Cap

PE 49 39 32
27.2% Mid Cap
Risk Ratios 60.9%
Small Cap
1 Year Data Strategy Benchmark
Churn Ratio 6.0% -
Standard Deviation 16.5% 15.5%
Weighted Average Market Cap Rs. 1,54,038 Crs
Beta 0.9 1.0
Sharpe Ratio 0.5 -0.7

Disclaimers and Risk Factors

BOP Strategy Inception Date: 16th Jan 2018; Data as on 30th September 2019; Data Source: MOAMC Internal Research; RFR – 7.25%; *Earnings as of June 2019 quarter and market
price as on 30th September 2019; Source: Bloomberg consensus, Capitaline and Internal Analysis; Please Note: The above strategy returns are of a Model Client as on 30th September
2019. Returns of individual clients may differ depending on time of entry in the Strategy. Past performance may or may not be sustained in future and should not be used as a basis for
comparison with other investments. Returns below 1 year are absolute and above 1 year are annualized. Strategy returns shown above are post fees & expenses. The stocks forming
part of the existing portfolio under BOP Strategy may or may not be bought for new client. Name of the PMS Strategy does not in any manner indicate its future prospects and returns.
The Company names mentioned above is only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC.