Before we Invest
Not every researched company belongs in a portfolio. At Care PMS, disciplined investing also means knowing when to walk away by assessing balance sheet strength, growth visibility, management execution, capital allocation and cash flows.
Key insights
- Not every company we research earns a place in the portfolio, knowing when to walk away is central to the role.
- A single weak number rarely drives the decision; a soft quarter may have a reasonable explanation.
- When several issues surface together, the team begins to ask harder questions.
- Red flags include a weakening balance sheet, unclear growth drivers, management that over-promises, frequent capital raises and diversification into unrelated businesses.
- Profits that look strong on paper but never convert into cash are also grounds to decline an investment.
- Before committing capital, we test five things: balance-sheet capacity for growth, the drivers of the next phase, management follow-through, the use of shareholder capital, and cash-backed profits.
- Compelling stories make buying tempting, disciplined investing also means deciding in advance what not to overlook.
Disclaimer. PMS investments are subject to market risks. Read all the risk factors and disclosures available on the website carefully before investing. This content is for information only and does not constitute a recommendation. Care Portfolio Managers Pvt. Ltd. · SEBI Regn. No. INP000004128.
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Invest directly with a SEBI registered portfolio manager, as a resident or a non-resident investor. Contact us at connect@carepms.com and our team will guide you through every step.
- 01
Consultation
A conversation with our team about your objectives, investment horizon and risk appetite, and the approach best suited to them.
- 02
Documentation
A PMS bank account and demat account are opened in your name. You sign the PMS agreement and grant the Power of Attorney.
- 03
Portfolio activation
Invest fresh funds of ₹50 lakh or more, or introduce an existing portfolio. Statements and reporting follow every month.