IOP V2 Strategy November 2020

(Performance as on 31st October 2020)

Investment Approach
Strategy Name: India Opportunity Portfolio Strategy - V2
Investment Objective: The Strategy aims to deliver superior returns by investing in stocks from sectors that can benefit from
India's emerging businesses. It aims to predominantly invest in Small and Midcap stocks with a focus on identifying potential
winners. Focus on Sectors and Companies which promise a higher than average growth.
Description of types of securities: Equity
Types of securities selected as part of the investment approach: Focus on Sectors and Companies which promise a higher than
average growth. Concentration on emerging Themes
Allocation of portfolio across types of securities: The strategy seeks to primarily invest in Equity and Equity-related instruments
of small cap and mid cap companies. However, the strategy has the flexibility to invest in companies across the entire market
capitalization spectrum
Benchmark: Nifty Small Cap 100 TRI
Investment Horizon: Medium to Long term

Key Features & Portfolio Attributes

1. Small cap oriented concentrated portfolio of 20 stocks investing in companies with high growth profile
2. Identifying companies in their early stages which have the potential to become midcap or large cap, thus resulting in
wealth creation
3. Newly ideated portfolio in 2018 amidst difficult market conditions, yet giving an outperformance of 5.9 % (CAGR) over the
benchmark
4. Index agnostic: ~ 94% away from benchmark Nifty Smallcap 100
5. The portfolio is a play on the Consumer Discretionary, Non-Lending financials and Software

Portfolio Actions in last 6 months

• Companies Exited: Coffee Day Enterprises, Reliance Industries Limited

How Buy Right : Sit Tight works

Market Cap Wealth creation is

Initial Market Cap
Rs. Crores Absolute achieved through
Company Purchas Rs. Crores CAGR (%)
(Initial Purchase Growth holding quality
e Date (31st Oct 20)
Date) companies for a
Bata India Feb-18 8,780 16,874 1.9X 27% long period of time
IPCA Laboratories Feb-18 7,008 29,336 4.2X 69%

Top 10 Holdings & Sectoral Allocation

%
Scrip Name Consumer Discretionary 13.5
Holding
Software 12.8
Larsen & Toubro Infotech Ltd. 11.5 Non-Lending Financials 12.5
Ipca Laboratories Ltd. 10.7 Consumer Staples 11.2
Central Depository Services (India) Ltd. 8.1 NBFC 10.9
Pharmaceuticals 10.7
Cholamandalam Investment and Finance Company 7.6
Cash & Cash Equivalents 9.1
Godrej Agrovet Ltd. 6.6 Industrial Products 4.7
Bajaj Electricals Ltd. 6.5 Cement 4.6
Avanti Feeds Ltd. 4.6 Auto Ancillaries 3.7
Construction 3.3
JK Lakshmi Cement Ltd. 4.6 Industrial Capital Goods 2.1
ICICI Securities Ltd. 4.4 Healthcare Services 0.8
Sundram Fasteners Ltd. 3.7

Disclaimers and Risk Factors

IOP V2 Strategy Inception Date: 5th Feb 2018; Data as on 31st October 2020; Data Source: MOAMC Internal Research; RFR: 7.25%; *Earnings as of June 2020 quarter and market price as on 31st October 2020;
Source: Capitali ne and Internal Analysis ; Please Note: Returns up to 1 year are absolute & over 1 year are Compounded Annualized. Returns calculated using Time Weighted Rate of Return (TWRR) at an aggregate
strategy level. The performance related information is not verified by SEBI. All portfolio related holdings and sector data provided above is for model portfolio. Returns & Portfolio of client may vary vis-à-vis as
compared to Investment Approach aggregate level returns due to various factors viz. timing of investment/ additional investment, timing of withdrawals, specific client mandates, variation of expenses charged &
dividend income. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
IOP V2 Strategy November 2020
(Performance as on 31st October 2020)

Performance Since Inception

IOP V2 Strategy Nifty Smallcap 100 TRI
IOP V2 Strategy has
11
0.9x delivered a CAGR of
9
-4.5% vs. Nifty Smallcap
7 0.7x 100 TRI returns of
5 -11.3%, an
3 outperformance of 6.8%
(CAGR) since inception

Sep-19

Feb-20
Feb-18

Sep-18

Feb-19

Sep-20
Jul-18

Jan-19

Jul-19

Jan-20

Jul-20
Aug-20
Aug-18

Aug-19
Oct-18

Oct-20
Oct-19

Mar-20
Mar-18

Mar-19
Apr-18
May-18

Dec-18

Apr-19

Jun-19

Dec-19

May-20
Jun-18

May-19

Apr-20

Jun-20
Nov-19
Nov-18

(5th February 2018)

IOP V2 Nifty Smallcap 100 TRI

39.0 43.2

12.9 16.5 13.1

2.9 2.1 2.4 3.2

-0.1 -5.7 -1.0 -4.5

-11.3
1 Month 3 Months 6 Months 9 Months 1 Year 2 Years Since Inception

Disclaimer: Performance related information is not verified by SEBI

Strategy Contributors (1 Year Trailing 31st Oct 2020)

Top 5 Contribution Bottom 5 Contribution
Ipca Laboratories Limited 7.9% H E G Limited -0.9%
Larsen & Toubro Infotech Ltd. 5.9% Bata India Limited -1.6%
Central Depository Services (India) Ltd. 5.0% Sobha Developers Limited -1.9%
Reliance Industries Limited 4.5% Kei Industries -2.8%
ICICI Securities Ltd. 1.9% Cholamandalam Investment & Finance Co. -3.3%

*Portfolio Fundamentals Market Capitalization

TTM
11.5%
PAT Growth -37%
RoE 13%
PE 21 Large Cap
39.7%
Mid Cap
Risk Ratios Small Cap

1 Year Data Strategy Benchmark

Churn Ratio 1.0% - 39.8%
Standard Deviation 28.2% 29.6%
Beta 0.89 1
Sharpe Ratio 0.19 -1.69
Our PMS services are available in direct mode, to know more, write to us at pmsquery@motilaloswal.com Weighted Average Market Cap Rs. 14,890 Crs
Disclaimers and Risk Factors
IOP V2 Strategy Inception Date: 5th Feb 2018; Data as on 31st October 2020; Data Source: MOAMC Internal Research; RFR: 7.25%; *Earnings as of June 2020 quarter and market price as on 31st October 2020;
Source: Capitali ne and Internal Analysi s; Please Note: Returns up to 1 year are absolute & over 1 year are Compounde d Annualized. Returns calculated using Time Weighted Rate of Return (TWRR) at an aggregate
strategy level. The performance related information is not verified by SEBI. All portfolio related holdings and sector data provided above is for model portfolio. Returns & Portfolio of client may vary vis-à-vis as
compared to Investment Approach aggregate level returns due to various factors viz. timing of investment/ additional investment, timing of withdrawals, specific client mandates, variation of expenses charged &
dividend income. Past performance may or may not be sustained in future and s hould not be use d as a basis for comparison with other investments. The Portfolio Manager manages allocations in all client portfolios
by way of a model portfolio which is in line with investment objectives of the portfolio strategy/ investment approach. U nless there are spe cific exclusion instructions by individual clients, all clients’ portfolios are
aligned to a model portfolio; which means replication and alignment of all clients’ p ortfolios in terms of scrip and allocation. New clients entering the strategy/ investment approach as of a particular date are also
aligned to the model portfolio. It must be noted that there are certain circumstances in which clients’ portfolio may deviate or differ from the model portfolios to a material extent. This may happen due to factors like
liquidity and free floating consideration in some stocks, organization level exposure norms and related risk management, potential exit of a stock from the model portfolio thereby precluding it from buying in new
client portfolios. The reasons quoted here are indicative but not exhaustive and the portfolio manager reserves the right to deviate from model portfolio for groups of clients depending on timing of their entry,
market conditions and model portfolio construct at the time of their entry. Risk factors associated with the investment approach are Equity risk, Systematic risk, Concentration risk, Model portfolio risk, Mismatch
risk, Execution risk, Low liquidity and Les s divide nds. To know more about the risk factors, please re fer disclos ure document at motilaloswalmf.com. Investment in securities is subject to market and other risks ,
and there is no assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services will be achieved. Please read Disclosure document carefully before investing.