Investment Approach

30th April, 2025

Objective & Investment Philosophy

Objective Focus on consistency of return and risk moderation by investing in

Multinational Companies listed in India.

Investments into listed companies in India in which the foreign shareholding is over 50%
and/or the management control is bestowed in foreign company and/or the technological
and managerial know-how brought in by foreign partner/investor.
4P Strategy – Stock Selection

Past Analysis Present Analysis

Business Moat /Market Share
Current vs Historical
Operating efficiency
Valuation, Margins, leverage, Asset Turnover
Working Capital Management
Capacity and utilisation
Balance sheet growth
Capex and Cashflow
ROE And ROCE growth etc

4P
Potential
Pedigree
Sector Outook Favourable Macro
Management Experience and Qualification
Sufficient capacity
Corporate Governance Practices
Outstanding Order Book,
Shareholding patterns
Multi year Contract, Client Addition,
Product Pipeline etc

Companies to undergo 4 P Analysis to make it to the Universe

Successful Business Model

 MNC’s benefit from the economy of

scales by spreading R&D expenditures
and advertising costs over their global
sales, pooling global purchasing power
over suppliers, and utilizing their
technological and managerial know-how
globally with minimal additional costs.

 MNC’s can use their global presence to

take advantage of underpriced labor
services available in certain developing
countries, and gain access to special
R&D capabilities residing in advanced
foreign countries
Strong Corporate Governance

 MNC’s are generally rated high for

their corporate governance standard.

 MNC’s depict high transparency and

accountability with well laid out policies
and regulatory framework, internal
control and risk management.

 This provide good comfort for an

investor who would not fall prey to any
negative impact on investment due to
corporate mis-management and fraud.
Healthy Balance Sheet
Special Opportunity

MNC companies during the holding period provides healthy dividend and capital appreciation
by earnings growth and sometime carries an additional trigger for value appreciation in form
of corporate actions like Open offers, Buybacks and Delisting etc. This usually add substantial
appreciation to the share price enhancing investors ROI. Below are some illustrations of the
same.

Corporate Announcement Price before Price on closure

Sr. Company Date % Gain
Action date Announcement of offer

1 Fulford India Delisting 25-Apr-14 682 30-Jul-15 2400 252%

2 Alfa Laval Delisting 16-Sep-11 1965 12-Apr-12 4000 104%

3 HUL Open Offer 29-Apr-13 497.6 04-Jul-13 600 21%

4 Glaxo Consumer Open Offer 23/11/2012 3049 30-Jan-14 3900 28%

5 Siemens Open Offer 28-Jan-11 727 13-Apr-11 930 28%

NIFTY MNC Index Analysis/Study

A study done on Nifty MNC Index which constitute 15 stocks shows favorable risk reward a portfolio of
MNC company could deliver.

NIFTY MNC NIFTY 50

From 2003 to 2023
Index Index

Annualised Return 13.81% 13.02%

Average 3 Year Rolling

14.2% 12.8%
Return p.a.

Annual Volatility 19.9% 21.76%

Beta with NIFTY 50 0.8

Correlation with NIFTY 50 0.9

NIFTY MNC Index has good correlation with NIFTY 50 Index. However the Beta stands at 0.8
Annualized returns of NIFTY MNC Index is higher compared to NIFTY 50 Index and Volatility is lower.
This shows a favorable risk reward for NIFTY MNC against NIFTY 50 Index
Note: The above study is done on Nifty MNC Index which constitute 15 stocks. The actual portfolio in PMS could deviate compared to
NIFTY MNC Index. The above analysis is not an indicative of future performance.
Portfolio Strategy
Re-VIEW Strategy

Valuation Check
A constant check is kept on the valuation of the companies so that any stock whose

V valuation becomes relatively high, due to any reasons like sentiments or increase in
liquidity, is exited before any price correction comes to the stock. We then shift the
money to a new stock with a reasonable valuation.

Impact of Events
A stock price can be highly affected by an event or series of events,

I recent examples: COVID crisis, Russia-Ukraine War, Increase in Crude

Price, Interest Rates Hike etc. Our team actively tracks these events and
makes timely modifications as per the situation’s needs to minimize risks
& optimize returns.

Earnings Visibility Changes

E
Our fundamental research team scrutinizes the quarterly results of the
companies to understand the current & future estimated growth. If we
are not satisfied with 2 or 3 quarterly results of the company & don’t see
growth, we take an exit to move to another stock.

Weightage Check of the Holdings

W Every stock & sector has been capped to a certain percentage of the total allocation
to limit downside due to any uncertainties and also diversify the portfolio. If any stock
or sector reaches near to the decided percent of allocation, we book profits and
reduce the weightage and invest into any other stock.
 Top Holdings and Allocation

Sr. No. Top 10 Holdings % Holdings

1 Glaxosmithkline Pharma Ltd 7.5%
2 Maruti Suzuki India Limited 7.3%
3 KFin Technologies Limited 7.1%
4 CRISIL Ltd 6.4%
5 Suven Pharmaceuticals Limited 5.9%
6 Abbott India Ltd 5.6%
7 Cummins India Ltd 5.1%
8 3M India Ltd 5.1%
9 Nestle India Ltd 4.9%
10 Ingersoll-Rand (India) Ltd 4.6%

Avg Mkt Cap (cr)

Large Cap 317218
Midcap 48469
Small Cap 14002
Overall Portfolio 92664

The current model client portfolio comprise of 20 stocks. Portfolio is well diversified
across market capitalization and sector. We have shown top 10 stocks based on
current portfolio. Most of the stocks are given more or less equal and sizable
weightage in portfolio
Data as on 30th April, 2025
Key Ratios

Ratios (5 Years Data)

Standard Sharpe Portfolio
Particulars BETA Treynor Jenson Alpha
Deviation Ratio Turnover
MNC PMS 0.7 12.89 1.15 21.25 -0.86 30.87%
BSE 500 TRI 1 14.57 1.54 22.48 NA NA

Beta: It measures how much an investment moves compared to the overall market. Beta of 1 means it moves with the
market, less than 1 means less risk and greater than 1 means more risk.
Standard Deviation: Shows how much the returns of an investment can go up or down. High ratio means the returns
can be very different from the average, making it riskier, while a low standard deviation means the returns are more
stable and predictable.
Sharpe Ratio: It tells us how much return we get for the risk we take with an investment. A higher Sharpe ratio means
better returns for each unit of risk, making it a good measure of how well an investment compensates for its risk.
Portfolio Turnover: Also called as churn ratio, is used to reflect the frequency of transactions done in the portfolio.
High turnover means high frequency of trading, while low turnover means the investments are mostly held for longer
periods.
Treynor: It shows how much return an investment gives for the risk taken from market movements. A higher Treynor
ratio means better performance for the given risk.
Jenson Alpha: It is used to determine if a portfolio is earning proper returns for the level of its risk. Positive value
means that the fund manager is outperforming the market with their stock-picking skills.
 4 Years Past Performance
Data as on 30th April, 2025

240
MNC PMS Nifty MNC Nifty 50
220

200

180

160

140

120

100
Nifty MNC Nifty 50
BETA 0.76 0.72
80

The above graph represents how our MNC PMS offering has over-performed compared to 2 indices, namely: Nifty 50 & Nifty
MNC. The comparison is of past 4 years where the returns of our PMS are post expenses.
 Portfolio Performance

Note: - Returns above one year are annualized. Returns are net of all fees and expenses.
Disclaimer: Past Performance is not necessarily indicative of likely future performance. 14
Performance mentioned above are not verified by SEBI. We have shown the performance as Aggregate performance of all clients on TWRR basis.
 Portfolio Performance

Note: - Returns above one year are annualized. Returns are net of all fees and expenses.
Disclaimer: Past Performance is not necessarily indicative of likely future performance. Index 15
- BSE 500 TRI is shown as per guidelines
Performance mentioned above are not verified by SEBI. We have shown the performance as Aggregate performance of all clients on TWRR basis.
Top Contributors
Data as on 30st April, 2025
PORTFOLIO STRATEGY
Selection Process

Out of 4500 listed Company, there are only 90 odd MNC Companies which are own by Foreign Promoter
with more then 1000 cr Market Cap which make the stock universe limited for further evaluation.
Well Balanced Defensive but Growth

This Bucket is Expected

Consumer • Staple and Healthcare
to show Steady and
non • Companies Like Hindustan Unilever, Nestle, Britannia, Colgate,
Nominal growth
Glaxo Consumer etc.
Discretionary • Pfizer, Abbot lab, Glaxo Pharma, Sanofi, Astrzenca.

This Bucket Does Well

• Auto, Paint, Consumer Durables etc with normal Economic
Consumer
• Maruti, Wabco, 3M India, Bata, Whirpool, Bosch, Johnson Hitachi, Growth
Discretionary Kansai Nerloac, Akzo Nobel, Castrol, Gulf oil Lubricant etc.

• Cement, Engineering, Electricals, Capital Goods, Metals, This Bucket Does Well
IT, Chemicals etc. when economic growth is
Cyclical • ACC, Ambuja, Heidelberg, Simenes, ABB, Honeywell , strong
/Others Grindwell Norton, GMM Pfaudler, Mphasis, Bayer Crop,
BASF, Oracle Financial, Crisil , Schaeffler, SKF etc.

The three bucket strategy with shifting allocation as per the market outlook help to further optimize the returns,
However Consumables remains the core part of the portfolio.
Growth like Multicap but Quality like Large Cap

• MNC PMS is a Multicap Portfolio with all market capitalization. (large, Mid, Small)
• There are many companies which by Indian Market Cap Definition are called as Midcap Companies
where as by Global Definition these are Large cap.
• One gets benefit of growth like Midcap Companies in India where as Quality of Large Cap. Few Eg given below

• Midcap in India
Pfizer • Biggest Pharma Company in World

• Midcap in India
3 M India • Part of Dowjones 30 index

• Midcap in India
Bata India • 125 year old Company operates in
70 Countries
Low Churn - Long term but Active Management

Top Performers
220% Average Annual
190% Turnover 30%
160%

130%
Partial Profit booking and Stocks
100% completely exited in profit is shown
in adjacent table.
70%

40% To optimize performance there are

10% couple of partial and complete exits
in losses done depending upon
-20% Abbott India Ltd Bata India Ltd Coforge Limited GMM Pfaudler Ltd Nestle India Ltd
market dynamics.
Gain on Open Position Partial Profit Booking
*GMM Pfaudler has been totally exited
Eg: Reducing allocation in Auto and
Ancillary in 2018-19 where sector
Though we have kept single stock weight max 15%, Partial Profit booking is was going through challenges
done whenever overall weight of single stock in portfolio reaches close to
9-10% of portfolio. Eg 2: Covid 19. Reducing allocation
Max 15% weight is kept in case of any special opportunity is going to get in Industrial and cyclical
unfold in short term.
Success Stories - Abbott India

Abbot India
Abbott India 25000

• Strong Parentage : Abbott 20000 Partial Profit Book

Laboratories USA
15000
• Offering high-quality trusted
medicines in multiple therapeutic 10000 Abbot India

categories such as women's health,

gastroenterology, cardiology, 5000
Initial buy
metabolic disorders and primary
care. 0

2-Apr-17

2-Apr-18

2-Apr-19

2-Apr-20

2-Apr-21
2-Jan-17

2-Oct-17
2-Jul-17

2-Jan-18

2-Oct-18
2-Jul-18

2-Jan-19

2-Oct-19
2-Jul-19

2-Jan-20

2-Oct-20
2-Jul-20

2-Jan-21

2-Jul-21
• Key Brands : Duphaston, Thyronorm,
Udiliv, Digene, Cremaffin, Duphalac • Focus strategy
1) to accelerate key brands
• Balance Sheet Strength: Zero Debt, 2) Drive therapy leadership
Positive Cash Flow and ROE 3) Strengthen Multi-channel and insight driven marketing
Maintained above 20% over last 5 4) Identify new product opportunity
years 5) Focus on talent development and engagement
6) 100+ products Launch in last 10 years and more
launches in coming years.
Success Stories - GMM Pfaudler

GMM Pfaudler

• Foreign Promoter: Pfaudler Inc. Full Profit Book

• A leading supplier of glass lined

based equipment (reactors, storage
tanks) in India, commanding > 50%
domestic market share, finding
critical application in the chemical & Partial Profit
pharmaceutical industries. Book
Initial buy

• Benefit from Domestic Chemical,

Pharma and Agrochemical capacity
addition post Shut down of
industries in China. • Focus strategy
1) to accelerate key brands
• Balance Sheet Strength: Zero Debt, 2) Drive therapy leadership
Positive Cash Flow and ROE 3) Strengthen Multi-channel and insight driven marketing
Maintained above 20% over last 5 4) Identify new product opportunity
years. 5) Focus on talent development and engagement
6) 100+ products Launch in last 10 years and more
launches in coming years.
Success Stories - Coforge Ltd.

Coforge Ltd
Coforge Ltd.
6000
Still Holding
• In 2019 NIIT ltd sold its stake in NIIT 5000
Technology to foreign player Barings.
The company rebranded to name it 4000
COFORGE ltd.
3000
• Over the Last 5 years Revenues for the Coforge Ltd

2000
company has grown by 10% plus CAGR
and PAT has grown by 25% plus CAGR. 1000
Operating margin is maintained around Initial buy
17% throughout. 0

2-Apr-17

2-Apr-18

2-Apr-19

2-Apr-20

2-Apr-21
2-Oct-17

2-Oct-18

2-Oct-19

2-Oct-20
2-Jan-17

2-Jul-17

2-Jan-18

2-Jul-18

2-Jan-19

2-Jul-19

2-Jan-20

2-Jul-20

2-Jan-21

2-Jul-21
• The company has three key verticals
Banking and Financial contributing
(17%), Insurance (30%) , Travel and • Despite COVID except for Travel business most business is
Transportation (29%) and Others (24%). doing good with constant addition of new clients
Geography wise America contributes especially healthcare. Company continues to remain
48%, EMEA 37%, ROW 15%. In terms of confident about its near- medium-term growth
service Mix ADM Contributes 73%, IMS prospects, citing its strong order booking/pipeline and its
16% and IP Based 6% and others. investments in building strong sales and leadership.
Founder & Promoter (Anand Rathi Group)

Gold medalist Chartered Accountant having more than four decades of rich and varied
experience in corporate management, financial & capital markets and corporate &
management consultancy.

Served Aditya Birla Group at very senior positions for more than 25 years before starting his
own financial services outfit. Shri Rathi was earlier President of BSE for two terms.

Anand Rathi Group derives its strength and vision from legendary leadership of Shri Anand
Rathi and charting growth path in his able guidance.
Anand Rathi
Founder & Chairman

Over twenty years broad based experience in the securities market and key driver of the
Retail and Institutional Equities business of the group.

Under his leadership, the Group’s Institutional & Retail Business has won great recognition
and many accolades. He has played a pivotal role in the Group’s network expansion and
pan India growth.

His valuable contribution towards professionalizing the management of the Group has won
him immense respect from the corporate world.
Pradeep Gupta
Co Founder &
Vice Chairman
Fund Management Team

More than 19 years of rich experience in Investment advisory, Product Development and
Portfolio Management.

Working with Anand Rathi since 2007 across Portfolio Management and Private Client Group
Equity Advisory.

Started Career with “Kotak Securities Ltd” in 2005 as an Investment Advisor subsequently got
into developing Equity products and running the same.
Mayur Shah Qualified MBA (Finance) from Mumbai University and Certified Financial Planner.
Fund Manager

More than 20 years of rich experience in Investment advisory, Portfolio Management and
research.

Worked in past with Standard Chartered Securities, Religare Securities, Enam Securities.

PGDBM from Mumbai.

Vinod Vaya
Product Features

MNC Portfolio
Minimum investment Rs. 50 lakhs

Portfolio: 15-20 STOCKS, diversified across sectors.

Themes offered Diversified portfolio of Multinational Companies listed in India with controlling
stake with foreign holder

Risk – reward & tenure Moderate risk reward. Investment tenure preferably 3 years+

Type of instruments Equity & Equity Related Instruments, Fixed Income Instruments, Cash & Cash
Equivalent

Benchmark BSE 500 TRI

Fees & Charges

Benefits
• Dedicated Web Login for client to monitor portfolio. AMC fees : 2.5% p.a (Charged Pro-rata at end of each quarter)
• A relationship manager to cater to investment needs Brokerage : 0.10% on Equity delivery transaction
• Constant monitoring of the portfolio Exit Load : 2% - 1st Year, 1% - 2nd Year, NIL after 2nd Year
• Audited statement at year end for tax filing purpose. Other Charges : GST, Other charges levied by Exchange, Custodial
Support charges (3 bps) levied by custodian and any other
• Back office customer service desk to address client statutory charges.
queries
 Specific Disclaimer

All Investment are subject to Market Risk.

Please read the risk factors before investing in the same.
Past Performance is not necessarily indicative of likely future performance

Registration Details Direct On-Boarding

To invest directly into our PMS, please:
PMS registered under : Anand Rathi Advisors Ltd.
Mail: pmsdesk@rathi.com
PMS Registration Number : INP00000282. Contact: 022-62813851, 52
Custodian : Orbis Financial Corporation Ltd. Or click here:
https://www.anandrathipms.com/contact-us.php

Product Support Back Office Support More Information

Name : Vinod Vaya Name : Manan / Sourabh Visit Our Website: https://www.anandrathipms.com
Tel : 022 - 6281 3851 Tel : 022 – 6281 1556 Click here for Disclosure Document
Email ID : vinodvaya@rathi.com Email ID : pmsdesk@rathi.com

OFFICIAL ADDRESS: 10th Floor, Express Zone - A Wing, Western Express Highway, Malad (East),
Mumbai - 400063, India
BOARD LINE : +91 22 6281 7000
 THANK YOU

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nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other
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investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek
financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report
and should understand that statements regarding future prospects may not be realized. Investors should note that income from such
securities, if any, may fluctuate and that each security's price or value may rise or fall. Past performance is not necessarily a guide to future
performance. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment
mentioned in this report.