Author : Siddhartha Bhaiya

Investing is not rocket science. Discipline, diligence, research and a long-term vision can spell the difference between outsized returns and modest growth. With a CAGR of 33.21%~ since inception, Aequitas’s investments in the markets have consistently outperformed the NIFTY over the past nine years. The answer lies in the firm’s long-term approach to wealth creation and a commitment to the highest levels of financial prudence. Here are a few guidelines that could help you too.

1. The Primacy of research

Research must be the foundation of any portfolio selection. Decisions based on tips, expert advice and opinion are best avoided. The promoter-holding pattern is a key indicator of the direction in which a company is headed. Low promoter holding limits the growth potential of its stock. Interaction with the management is another source of valuable inputs. Feedback from people in the industry (suppliers, vendors and even unlisted counterparties) provide an important perspective to the narrative. The process of building a research database is a continual one.

2. Examining basic valuations

The first deep dive into a stock examines basic valuations. For multi-baggers, investments must be at a significant discount to the intrinsic value to ensure a margin of safety. Annual reports and NSE announcements of the past three years help in establishing the growth trajectory of the company. Nuggets of information can be found in transcripts of conference calls going back to the past eight quarters.

3. Growth screeners

Going further, apply growth screeners for >25% growth in sales and PAT during the past three quarters. Valuation screeners must identify high performers with P/E less than 12, MCap/Sales under 1 and EV/EBITDA below 7. The dividend yield is another important factor.

4. Things to avoid

Discipline, diligence and consistency in research must form the basis of stock selection. Avoiding the temptation of going by market trends, acting on impulse or contrary to the findings of research – no matter how profitable it might be in the short-term.
Aequitas’s track record of outsized returns has contributed to its growth as an investment firm. With over a hundred UHNI, family office and FPI clients, and an AUM of $200 million~, the numbers speak for themselves. To benefit from Aequitas’s expertise, visit us at or write to

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