A disciplined path from idea to portfolio.
Our process combines fundamental analysis, proprietary screening and direct industry engagement, and applies the same discipline to how we enter, manage and exit every position.
Five stages of conviction.
Every idea is subjected to the same rigorous sequence before it earns a place in a portfolio.
Shortlist
We shortlist companies on ongoing fundamental triggers, or during quarterly earnings seasons, using Care PMS’s proprietary screeners, ensuring a thorough analysis of selected companies before any investment decision.
Research
We conduct extensive fundamental research on shortlisted stocks and their peer group to identify trends or potential turnarounds within the segment or industry, enabling well-informed investment decisions.
Validate
We incorporate recent developments within the segment or industry into our analysis, including meetings with industry participants across the entire value chain, to validate our insights and conclusions.
Decide by consensus
A company is added to the portfolio, or an existing holding replaced, only after consensus within the investment team, ensuring thorough deliberation and well-considered portfolio adjustments.
Engage management
We analyse each company’s strategy, management’s execution capabilities and the pedigree of its leadership, followed by a Q&A session with the company’s management or investor relations team, deepening our insight into operations and prospects.
Care PMS also applies a top-down approach, identifying industry tailwinds, or triggers that can benefit an industry over the medium to long term, which enhance the prospects of the industry leader and eventually lead to a positive re-rating of both the industry and the company.
What we look for.
Four criteria, applied consistently to every company we evaluate.
Growth
We track historical volume growth, forecast revenue growth and margin expansion, seek declining expenses as a percentage of revenue, and project profit-after-tax (PAT) growth.
Management
We assess management’s record of accurate guidance, adherence to corporate-governance principles, a rational and trustworthy approach, and experience in executing strategy effectively.
Financials
We evaluate zero debt or high interest coverage, a contracting working-capital cycle, improving turnover ratios, historical return-on-equity (ROE) trends and the dividend payout ratio.
Valuation
We analyse P/E, PEG, EV/EBITDA, P/B, DCF and replacement cost, benchmarked against competitors in the same segment and against benchmark indices.
Principles, applied.
We refrain from investing in sectors such as distilleries, meat, leather and tobacco, as they do not align with our principles. On client request, we also tailor portfolios to exclude sectors that conflict with their values, ensuring alignment with each client’s comfort level regarding specific sectors or industries.
Further exclusions are available on client request.
Protecting the downside, first.
Risk is assessed before entry and monitored continuously thereafter.
Disproportionate risk-reward
A thorough analysis of potential downside risk against potential upside before any investment enters the portfolio.
Diversify
All portfolios are diversified across 18–20 companies spanning 8–10 sectors to mitigate risk and optimise returns.
Macro indicators
We monitor interest rates, institutional flows and other macro factors, adjusting portfolios to capture opportunities and manage risk effectively.
Continuous monitoring
Real-time monitoring of news affecting portfolio companies, alongside quantitative reviews of individual portfolios as part of ongoing rebalancing.
Knowing when to sell.
An exit is as deliberate as an entry. These are the six triggers on which we act.
Partial profit booking
When a price rise is driven by euphoria rather than fundamentals.
Portfolio rebalancing
When the weight of an individual stock or sector exceeds predetermined limits, we may reduce the weight of that company in the portfolio.
Shift to better opportunities
Research is continuous and surfaces new candidates. Where an alternative with superior prospects emerges, we may replace an existing holding.
Deterioration of fundamentals
An exit is justified when a change in the company’s fundamentals leads to a downward revision of earnings expectations.
External / macro dynamics
An exit is warranted when a change in the macroeconomic environment affects the company’s operations and leads to a downward earnings revision.
Price reaches fair value
When earnings reach the anticipated level and the stock attains fair value, signalling a plateau thereafter.
Begin your Care PMS journey.
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.