Name | Listing Date | Listing Price(₹) | Current Price(₹) | Holding Period(Yrs) | Absolute Return | CAGR Return |
Aditya Vision Ltd | 12 Dec 2016 | 15 | 4,409 | 7.7 | 29,293% | 110% |
Insolation Energy Ltd | 10 Oct 2022 | 38 | 3,108 | 1.8 | 8,079% | 986% |
Waree Renewable Technologies Ltd | 09 Aug 2012 | 22 | 1,502 | 12.0 | 6,726% | 42% |
Suyog Telematics Ltd | 22 Jan 2022 | 25 | 1,455 | 10.6 | 5,719% | 47% |
Nintec Systems Ltd | 18 Apr 2016 | 10 | 506 | 8.3 | 4,964% | 60% |
Government Initiatives Propel SMEs Toward
Improved Cashflow
Section 43B(h) ensures payment to SME suppliers within 45 days
Ease of Credit
₹ 5 lakh Cr through (ECLGS) ₹ 50,000 crore equity infusion through SME Self-Reliant India Fund
Policy Drive
Make in India, ODOP, PLI and other schemes to benefit SME growth
Investment Framework LMVT
Leadership
History of Strong Execution
Demonstrated Business Acumen
Coupled with Entrepreneurial Spirit
High Promoter Holding
Relevant Experience and Track
Record of Management
Valuation/Value Drivers
Attractive Value Counters using PE, PEG & EV/EBITDA Framework
Margin of Safety in Investment
5 year average D/E < 1
Consistent Shareholder Wealth Creation
Moat
Presence of High Pricing Power
Product Differentiation having an edge over peers
Presence of High Entry Barriers / Licensees / Patents
Robust Business Model
Following Tailwinds
Positioned in high-growth sectors with government policy push
Focused on disruptive technologies, green energy and AI
Ready to scale in evolving markets
Beyond the Facade
Qualitative Financial-Snapshot Assessment
Too high goodwill or presence of revaluation reserves
Rising days of receivables, Inventory rising faster than profits
Excessive leverage and falling DSCR, ICR
Related party transactions
Large business-unrelated investments as a % of asset Contingent Liabilities
Quantitative Evaluation of Earnings Forecast
Revenue rising at a slower pace than profits
Discrepancy between Accrual and Cash Earnings
Capitalisation vs Expensing (R&D, interest cost etc)
Sharp decline in taxes
Frequent large Extraordinary/Miscellaneous Expenses
Overstatement of revenue using Non-Recurring income/Channel Stuffing
Corporate Governance Assessment
Abrupt frequent change in auditors
Qualified audit opinions
Sudden/Frequent changes in top management
Reduced disclosures/Non-Compliance with Regulator/Exchange
Board lacking Competence/Independence
Excessive auditor/management compensation
Promoter/Director Criminal History
Classes | E1 | E2 | E3 | E5 | E10 | E25 | E50 |
Minimum Capital | 1 Cr | 2 Cr | 3 Cr | 5 Cr | 10 Cr | 25 Cr | 50 Cr |
Management Fees | 2% | 2% | 2% | 1.75% | 1.50% | 1.25% | 1.00% |
Setup Fees | 0.05% | 0.25% | 0% | 0% | 0% | 0% | 0% |
Opex | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% |
Hurdle Rate | 12% | 12% | 12% | 12% | 12% | 12% | 12% |
Carry | 80% | 80% | 80% | 80% | 85% | 90% | 90% |
Catchup | 25% | 25% | 25% | 25% | 25% | 25% | 25% |
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