L.E.A.D.

PMS
Standing by Our Mission

To provide our customers with

secure, customized and
comprehensive financial solutions
to achieve sustained growth

At Emkay we believe
"Your Success is our Success"
Overview of A Success Story
▪ Founded on 24th January 1995 to offer
solutions for complete Financial
Planning
▪ Listed on NSE & BSE with Rs. 75 Cr.
IPO in 2006
▪ Serving through a network of over 20
branches & franchisees across 100+
cities
▪ Business model serves both Institutional
and Retail client base
▪ Emkay Recognized as Most Admired
Service Provider in Financial Sector for
at National Awards for BFSI Excellence
by CMO Asia.
▪ Ranked amongst the 25 Fastest
Growing Financial Consultant
Companies in India by the CEO
Magazine
▪ Emkay Awarded as India’s Most
Trusted Financial Brand for the year
2016-17 by World Consulting &
Research Corporation
▪ Tie-up with DBS Vickers Securities for
co-branding & distribution of Emkay
Research
▪ EMKAY Emerging Stars Fund - Series I
& II closed successfully with
commitments of Rs.300+ Cr.
The Figures Speak For Themselves

Data as on 30th June, 2018

A continuous effort towards setting new benchmarks & outperforming them

Portfolio Management Services

Focus on Quality – E-
Emkay Strategy has Qual Risk (Emkay's
Research-backed
consistently Proprietary Module)
Investments in Sectors
outperformed the Focused portfolio with which includes
Emkay & Companies with
benchmark across no over diversification Management Quality,
Secular Growth
Philosophy Outlook
market cycles over its Management
lifetime Capability, Wealth
Distribution et al

Emkay
Emkay Pearls
Platinum
Managing
INR 18,175 Lac
Emkay Capital
Emkay Crystal (as on 30th June, 2018)
Builder
Our other
PMS
offerings
L.E.A.D. PMS an ideal “Wealth Creation” Portfolio Strategy
Features of a L.E.A.D. portfolio

Focus on risk Portfolio of 15

adjusted returns structural growth cos

Steady performance No use of leverage or

over medium term L.E.A.D. High debt cos
PMS

Lower portfolio volatility

Low portfolio turnover and high liquidity
L.E.A.D. PMS – Core Investment Framework
Leadership
▪ Market-share Leadership
▪ Profit-share Leadership
(Apple vs Rest of the manufacturers)
▪ Cost Leadership
(Export Oriented sectors like IT, Textiles,
Chemicals)
▪ Growth Leadership
(Companies with best growth in the sector
like Private banks vs PSU Banks)
▪ Product Leadership
Moat / Niche in the Business
▪ How different is the company
▪ Edge, Entry-barrier, Competition,
Pricing-power
▪ Bargaining power of the industry
Strong Management Credentials
▪ Track record of past decisions
▪ Comments v/s Delivery
▪ Future-vision
▪ Avoid aggressive accounting policies
▪ Management background
Strong Earnings Visibility & Quality
▪ How big the sector can be (3x, 4x....)
▪ Revenue/PAT/Cash-flow growth
▪ RoE, RoCE analysis
▪ High operating/Free cash-flow generation
Dependable
▪ Identifying Price-Value gap with focus
on margin of safety
▪ Comparative valuations
▪ Market-cap vs Opportunity size
7
L.E.A.D. PMS – Investment Themes
The portfolio seeks to achieve long term capital appreciation by investing in below themes

Value Migration Beneficiaries

▪ Value Migration is defined by Adrian Low cost

Slywotzky, author of the book “Value
producers
Migration”, as a flow of economic and
shareholder value away from obsolete
business models to new, more effective
designs that are better able to satisfy
customers’ most important priorities. Technology
leaders
▪ The framework tries to identify industries
where Value Migration is underway and
help pick potential winners early in the Efficient
cycle. products/
delivery
models
▪ Few examples: Private banks vs PSU
banks, Voice to Data, Organised vs
Unorganised Retail, etc.
L.E.A.D. PMS – Investment Themes
The portfolio seeks to achieve long term capital appreciation by investing in below themes

Structural Domestic Consumption Plays

▪ India’s GDP is expected to grow from

$2.5tn in FY18 to $5.0tn by 2025.

▪ Domestic consumption is expected to grow

from $1.3tn to $3.0tn by 2025 led by
significant growth in discretionary
consumption.

▪ The strategy aims to benefit from the

growth in GDP and the attendant impact
on domestic consumption driven sectors.

▪ Few examples: FMCG, Consumer

Discretionary, Auto & Auto Ancillary, etc.
 Focus on Capital Preservation

Focus on large and mid cap Diversification across

companies industries and companies
• >50% exposure in companies with • < 30%* exposure in one sector
Mcap >USD 3bn • <10%* exposure in one stock
• Nil exposure in small cap • Maximum investment in 15 stocks
companies
(Top 250 cos as per Mcap) • <20%* exposure in turnarounds or
special situation stocks
• Companies with minimum
turnover of INR 500cr *At the time of initiation

Risk Management
• >15% price movement in a
month triggers review of the Strong risk Earnings growth and
stock Quality Filters
• Focus on Liquidity risk
management strategy • ROCE > COE
• No use of leverage with focus on Capital • Earnings growth > GDP
• Monthly portfolio review Preservation growth
Investment Selection Criteria

Listed Companies = > 5,000

Market Cap filter: Focus on large and midcaps

Top 250 companies as per Market Cap Net Sales > INR 500cr

Earnings growth filter: Focus on strong historic and future growth

ROCE > COE Earnings growth > GDP growth rate

L.E.A.D.

Strong leadership in the respective sector – Strong Management credentials

market share/profit share/cost/ growth/product – vision, track record, growth

Valuation

Price - Value gap through DCF with Comparative Mcap vs

PEG ratio
focus on Margin of Safety Valuations Opportunity Size

Selected Stocks = 15
Extra-Ordinary Leader = Enormous Wealth Creation
4400
4000
3600 Base Year 2000 No of times (x)
3200
2800
HDFC Bank Ltd 37
2400
2000
1600 State Bank of India 13
1200
800 ICICI Bank Ltd 11
400
0
BSE Sensex 6
Sep-03

Aug-06

Sep-10

Aug-13

Sep-17
Jul-02

Jul-09

Jul-16
Dec-01

Dec-08
Mar-00
Oct-00

Nov-04
Jun-05
Jan-06

Nov-11
Jun-12
Jan-13
May-01

Apr-04

Oct-07

Oct-14

Dec-15
Feb-03

Mar-07

May-08

Apr-11
Feb-10

Mar-14

May-15

Feb-17
SBI ICICI Bank HDFC Bank BSE Sensex

4400
4000
3600
Base Year 2008 No of times (x)
3200
2800
2400 HDFC Bank Ltd 5.9
2000
1600
ICICI Bank Ltd 1.5
1200
800
400 State Bank of India 1.4
0
Jul-12

Jul-15
Jul-08

Jul-09

Jul-10

Jul-11

Jul-13

Jul-14

Jul-16

Jul-17
Nov-08

Nov-09

Nov-10

Nov-11

Nov-12

Nov-13

Nov-14

Nov-15

Nov-16

Nov-17
Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

BSE Sensex 1.9

SBI ICICI Bank HDFC Bank BSE Sensex

12
L.E.A.D. PMS – Top 5 Holdings & Performance Update

Sales 5y EPS 5y ROCE/ROA % ROE % OCF 5y Sales CAGR EPS CAGR

Company Name Sector
CAGR % CAGR % 5y Avg 5y Avg CAGR % (FY18-20) (FY18-20)

Bajaj Finance BFSI 25.1 26.7 3.3 20.3 - 30.8 34.5

Astral Poly Building Materials 21.0 22.0 22.6 19.4 34.2 25.1 31.5
Chemicals/
Aarti Ind Exports 13.5 20.1 23.2 22.5 10.1 19.8 24.6

Maruti Suzuki Auto 13.1 26.0 18.5 18.3 23.1 16.43 20.8

Britannia Consumer 10.1 31.0 48.2 46.9 31.3 15.2 24.2

31-Jul-19 1 month (%) 3 month (%) 6 month (%) Inception till date (%)

EMKAY LEAD PMS -4.2 -1.3 2.8 12.4

Nifty 200 -5.7 -5.9 1.2 4.2

*Inception Date: 1st November, 2018

13
L.E.A.D. PMS: Risk-Return Parameters

14
Fee Structure

Minimum
Strategy Set up
Investment Fee Structure Exit load
Type Fees
amount

1st Year : 2% 2nd Year :

Large & Mid Management Fee up to 1% thereafter for every
2500000 Upto 2%
Cap 2.25% contribution on a FIFO
basis.

15
Portfolio Management Services

Asset management arm of Emkay Global known as Emkay Investment Managers Ltd (EIML)

Emkay PMS and Advisory Team

Krishna Kumar Karwa

A rank holder from the Institute of Chartered Accountants of India (ICAI), Krishna Kumar Karwa is the
Promoter, Managing Director of the holding company Emkay Global Financial Services Ltd. Mr. Karwa
has a rich and varied experience of over 28 years in all aspects of equity markets. He leads the
Research, PMS and Corporate Advisory divisions at Emkay.

Bhavesh Sanghvi
Bhavesh Sanghvi is an alumni of Columbia Business School & NMIMS. He’s the CEO of Emkay
Global Wealth Management with over 29 years of experience. Prior to joining EGWM, Bhavesh was
the Head-Wealth Management at Aditya Birla Capital. His core expertise includes advisory, fund and
wealth management.

Sachin Shah
Sachin our portfolio manager brings with him 18 years of rich experience in equity markets. He has
played a pivotal role in the development of Emkay PMS’s proprietary module EQqual Risk. Sachin
has managed discretionary PMS with top most broking houses and is a stalwart in advisory & wealth
management, market strategy, sector & company research.

Raj Gala
Raj our portfolio manager has over 10 years’ of experience in equity markets. In his last assignment,
he was working with Aditya Birla Capital – Wealth Management as an equity strategist where he was
managing equity advisory (PMS/ND-PMS/Direct Equities) for wealth clients. In the past, he has also
worked with Edelweiss Capital for 8 years as a senior equity analyst tracking multiple sectors like
BFSI, IT, Consumption, Midcaps and managing event based trading strategies.
About Us & Disclaimer

Emkay Investment Managers Ltd

7th Floor, The Ruby,
Senapati Bapat Marg,
Dadar - West,
Mumbai 400028. India
Tel : +91 22 66121212
Fax: +91 22 66121299
Email: pms@emkayglobal.com
Website: www.emkayglobal.com
CIN: U67190MH2010PLC203819
PMS: INP000004458

Disclaimer: Emkay Investment Managers Ltd is not responsible for any error or inaccuracy or any losses suffered on account of information
contained in this report. Investors and Distributors are advised to consult before taking any decision on investments. PMS Investment products are
subject to market risks, read all scheme related PMS documents carefully.