BOP Strategy November 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 the portfolio has delivered alpha over Nifty 500 across
all time periods since inception. It has delivered a ~17% alpha in the 1 year period
3. Central themes of the strategy are Consumer Discretionary, Private Banks & Insurance, Agriculture, Affordable Housing
and GST Beneficiaries
4. Concentrated portfolio of 23 stocks with high earnings growth

Portfolio Attributes
1. Index agnostic: ~79% away from benchmark Nifty 500
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

Portfolio Actions in last 6 months

• Companies Added: ICICI Bank, Reliance Industries
• Companies Exited: Ujjivan Financial Services

Top 10 Holdings & Sectoral Allocation

FMCG 19.3
Scrip Names % Holdings
Retail 14.7
Hindustan Unilever 9.5
Banks 13.6
Bata India 8.6 Insurance 11.7
ICICI Lombard General Insurance Company 7.0 Agriculture 7.0

HDFC Bank 6.3 Construction 5.8

Titan Company 5.2 Engineering & Electricals 5.6

NBFC 4.7
Kotak Mahindra Bank 5.1
Logistic Services 4.5
Blue Star 5.0
Auto & Auto Ancillaries 3.8
Bajaj Finance 4.7
Oil and Gas 3.5
HDFC Life Insurance Company 4.7
Infotech 3.2
Britannia Industries 4.6 Tea & Coffee 2.6

Disclaimers and Risk Factors

BOP Strategy Inception Date: 16th Jan 2018; Data as on 31st October 2019; Data Source: MOAMC Internal Research; RFR – 7.25%; *Earnings as of June 2019 quarter and market price as
on 31st October 2019; Source: Bloomberg consensus, Capitaline and Internal Analysis; Please Note: The above strategy returns are of a Model Client as on 31st October 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 November 2019
Performance Since Inception
BOP Strategy Nifty 500
28.1
BOP Strategy has
21.3 delivered a CAGR of
18.9
7.7% vs. Nifty 500
14.7 returns of 0.5%, an
10.7 outperformance of
7.1 7.6 7.7 7.2% (CAGR) since
4.9 3.7
inception (16th January
0.3 0.5 2018)

1 Month 3 Months 6 months 9 months 1 Year Since Inception

Fund Contributors (1 Year Trailing 31st October 2019)

Top 5 Contribution Bottom 5 Contribution

Bata India 5.5% Century Plyboards (India) -0.1%

Bajaj Finance 4.6% Godrej Agrovet -0.2%

ICICI Lombard General Insurance Company 3.8% Gruh Finance -0.3%

Hindustan Unilever 3.4% Eveready Industries India -1.6%

Titan Company 2.6% Exide Industries -1.9%

*Portfolio Fundamentals Market Capitalization

TTM FY20E FY21E

PAT Growth 17% 24% 22% 12.2%
RoE 24% 25% 26% Large Cap
PE 50 40 34
Mid Cap
27.3%
Risk Ratios
Small Cap
1 Year Data Strategy Benchmark
Churn Ratio 9.9% - 60.5%
Standard Deviation 14.2% 14.5%
Beta 0.8 1.0
Weighted Average Market Cap Rs. 1,81,312 Crs
Sharpe Ratio 1.4 0.4

Disclaimers and Risk Factors

BOP Strategy Inception Date: 16th Jan 2018; Data as on 31st October 2019; Data Source: MOAMC Internal Research; RFR – 7.25%; *Earnings as of June 2019 quarter and market price as
on 31st October 2019; Source: Bloomberg consensus, Capitaline and Internal Analysis; Please Note: The above strategy returns are of a Model Client as on 31st October 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.