We invest in well run, reasonably valued companies which have deep and wide moats around them, resulting in robust cash flows which can be redeployed profitably to grow their businesses over a long period of time. We believe this approach can result in steady compounding of returns at a high rate and outperformance over the long term while taking on limited risks.
Our investment process ensures that the companies which we evaluate have demonstrated superior economics and growth trajectory in the past. The investment approach is designed to evaluate the sustainability of these parameters in the future.
Our diligence process involves understanding the underlying growth drivers in a granular detail, evaluating the strength and sustainability of the competitive moat and figuring out management’s capability and intentions. In order to accomplish this objective we conduct extensive due diligence which involves speaking with various stakeholders including management, competitors, regulators, suppliers, distributors, retailers and also visiting factories, depots and retail outlets.
Significant portion of our time is also spent on assessing whether the management has the drive and the capability to take the business to a level which is multi fold of where it is today.