About Us

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Consultation

Contact Info

Chicago 12, Melborne City, USA
(111) 111-111-1111
builder@gmail.com
Week Days: 09.00 to 18.00 Sunday: Closed

Dynamic Midcap Fund

Equity Markets are Dynamic

MSCI India - Growth/Value Index

MSCI India

Growth is outperforming
Value is outperforming

Growth

Growth is outperforming
Value is outperforming

Favorable Environment for Growth Stocks

Relatively low volume growth due to poor demand
Low demand-led inflation
Declining interest rates to support demand & growth

Favorable Environment for Value Stocks

Strong volume growth led by demand
High inflation and GDP growth rate - led by demand
Rising interest rates to control the demand

In the current uncertainty, you need a portfolio which has both Growth & Value stocks

Source: MSCI India Value Index, MSCI India Growth Index

Investment Strategy | The GSM Framework

Growth-oriented style

High volume growth driving strong revenue numbers
Strong top-line, bottom-line and cash flow growth

Strategic investment style

Value Investing

Companies recovering from sectoral downturn
Turnaround opportunities

Special Situations

Value unlocking from acquisition/demerger/buyback etc.

Margin Expansion Style

Raw material tailwind
Higher profitability as compared to revenue growth
Management focusing improving operating leverage, new product margins

Scuttlebutt Analysis

Strong Balance Sheet

Low Leverage

Structural/ Tactical

Available at Reasonable Valuations

How we think about Risk?

Mandatory trimming of position where a stock breaches 12% of the current portfolio value
Stock allocation is an indication of risk-return tradeoff
- High Return + High Risk = Low Allocation
Exposure to a wider spectrum of sectors/sub-industries
- Diversification helps in market downturns – not all sectors underperform at the same time
- Regular profit booking while maintaining sector weights – selling outperformance & buying underperformance
Managing exposure to raw material (commodities), geographies, size, style
- Conscious of common supply-chain
- Export oriented businesses – E.g. Samvardhana (auto-anc. Sold due to EU exposure) but Uno Minda saw increase in allocation
While debt is allowed till 0.5x to equity – in the current 'tariff uncertainty' ~60% of the portfolio is allocated to net cash companies.

Shallow Drawdowns – Faster Recovery

Drawdown Analysis

Tip: Rotate your phone horizontally for better table viewing

A: 31 July'24 to 13 Aug'24

B: 13 Sept'24 to 24 Apr 25

PDMF NAV (LHS)

Nifty Midcap 150 TRI (RHS)

A: 31 July'24 to 13 Aug'24

	Max Value	Min Value	Drawdown	Recovery Days
Nifty Midcap 150 TRI	27,591	26,015	-5.7%	22
BSE 500 TRI	47,143	44,987	-4.6%	27
PDMF NAV	140	132	-6.0%	15

B: 13 Sept'24 to 24 Apr 25

	Max Value	Min Value	Drawdown	Today's Value	Recovery From Bottom	Down from Top
Nifty Midcap 150 TRI	28,421	22,468	-20.9%	25,565	13.8%	-10.0%
BSE 500 TRI	49,087	39,915	-18.7%	44,601	11.7%	-9.1%
PDMF NAV	148	119	-20.1%	137	14.6%	-8.5%

How is Dynamic Midcap different from Pratham?

Pratham – Philosophy

3-Drivers

Consistent Volume Growth
Valuation (PS+PB)
Margin Expansion

Drivers indicate allocation
Net cash companies
Valuation Methodology is fixed
Target – Absolute Return

Dynamic Midcap – Philosophy

3-Buckets (GSM)

Growth – Revenue/PAT growth (18-20%), Relative growth
Strategic Value – Relative valuation, value unlocking
Margin Expansion

Bucket allocation indicates market opportunity
Buckets are overlapping
Net Debt allowed till 0.5x to Equity – e.g. Uno Minda
Valuation methodology changes with Bucket – e.g. Max Health
Target – Absolute Return

Pratham – Product

Concentrated :: 10-12 stocks

Focus on consumer-oriented structural growth stories

Execution :

Max exposure of 17.5% per stock (at start)
Stock allocation criteria is fixed
Churning based on fundamentals

Dynamic Midcap – Product

Diversified :: 18-25 stocks

Structural + Tactical growth stories
- Max Health is structural but Supriya was tactical
Deliberate diversification to all sectors – cyclical too

Execution :

Max exposure of 8% per stock (at start) & 12% limit
Stock allocation is a risk-return tradeoff
Churning based on market opportunity

A few examples of Bucket movement

Shriram Finance → From "S" to "G"
Navin Fluorine → From "G" to "G+M"
Supriya Lifesciences → From "S" to "G" to Exit

Growth "G" is the most important bucket

18 stocks* - representing market opportunity

Basket Allocation	31-Mar-23	30-Jun-23	30-Sep-23	31-Dec-23	31-Mar-24	30-Jun-24	30-Sep-24	31-Dec-24	31-Mar-25
G	8.8%	18.9%	29.0%	44.0%	42.0%	54.7%	51.8%	52.9%	42.7%
S	11.8%	20.6%	24.5%	18.3%	18.6%	9.6%	7.2%	2.9%	0.0%
M	2.5%	6.0%	7.5%	4.0%	0.0%	4.2%	7.9%	7.7%	8.1%
GS	2.5%	5.9%	8.1%	13.9%	12.9%	11.2%	11.4%	9.8%	10.2%
GM	2.7%	4.4%	7.0%	5.9%	5.9%	3.8%	4.1%	3.9%	4.1%
SM	0.0%	0.3%	4.0%	5.4%	9.0%	10.5%	14.8%	17.2%	15.1%
GSM	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Cash	71.8%	43.9%	19.8%	8.5%	11.7%	6.2%	2.8%	5.5%	19.8%
Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

Strategic Valuation Basket Analysis

Shriram Finance Case Study

Bought during the uncertainty due to the pending merger with Shriram City Union.
Strong parentage providing stability and growth potential.
Initial thesis – Valuation reversion to its own historical mean.
Post-Merger - Transitioned to Growth Basket.
Cross-selling Opportunity opened up after merger completion.
Graduated from pure-play CV financing to a diversified NBFC, leading to valuation re-rating.

Position Transition

Strategic Valuation Basket

Growth Basket

Position Initiation with Strategic Valuation Basket

Basket changed to 'Growth' after merger completion

V1 Analytics: Basket Allocation Over Time

Dynamic Midcap - GSM Strategy

Bucket allocation indicates market opportunity

Structural + Tactical growth stories within Buckets.

Max Healthcare is structural but Supriya was tactical in Growth bucket.

Buckets are overlapping & change overtime

Hero Motocorp is G+M
Shriram Finance moved from S to G

Net Debt allowed till 0.5x to Equity

Uno Minda

Valuation methodology is different for buckets

Max Healthcare is expensive on valuations but its Growth is high with strong visibility (structural)
Hero Motocorp is cheap in valuation but has strong prospects of Margin improvement

Max exposure of 12% per stock at any time (on market prices)

Target – 3-4% Outperformance over Benchmark

Dynamic Midcap | Size Allocation

Count	31-Mar-23	30-Jun-23	30-Sep-23	31-Dec-23	31-Mar-24	30-Jun-24	30-Sep-24	31-Dec-24	31-Mar-25
No. of Midcap Stocks	8	14	16	13	11	15	14	13	13
No. of Smallcap Stocks	2	6	8	8	9	9	9	10	9
No. of Largecap Stocks	2	1	3	4	4	6	6	5	5
Total No. of Stocks	12	21	27	26	24	30	29	28	27

Dynamic Midcap | Size Allocation

Targeting to maintain 65–70% allocation in Midcaps
Size must confirm Bucket – L/M/S must fall in either of the Bucket
Size allocation across all baskets
Various sectors across L/M/S size

Dynamic Midcap | Sector Allocation

Sector Allocation	31-Mar-23	30-Jun-23	30-Sep-23	31-Dec-23	31-Mar-24	30-Jun-24	30-Sep-24	31-Dec-24	31-Mar-25
Financial Services	9%	19%	24%	27%	25%	21%	21%	18%	18%
Healthcare	4%	6%	7%	6%	5%	4%	4%	4%	4%
Capital Goods	3%	6%	10%	12%	13%	15%	14%	12%	9%
FMCG	3%	3%	6%	7%	9%	10%	11%	12%	11%
Information Technology	5%	7%	9%	5%	5%	8%	9%	9%	8%
Automobile and Auto Components		3%	4%	4%	4%	4%	4%	4%	4%
Metals & Mining			3%	5%	9%	7%	6%	6%	6%
Consumer				2%	4%	4%	4%	4%	4%
Construction Materials		3%	4%	6%	4%	3%	3%	4%	4%
Chemicals	0%	3%	7%	7%	3%	3%	3%	4%	4%
Cash	72%	44%	20%	9%	12%	6%	3%	5%	20%
Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

▪ Well diversified across various sectors – Sector rotation on market opportunity

▪ Avoiding certain Sectors

Oil & Gas, Telecom – due to high leverage
Media – OTT & Online ad-revenue headwinds. Structural de-growth in subscriptions.
Realty – High valuations, leverage. Questions over sustainability of high growth

▪ Within Sectors – diversified among industries, size & bucket

Dynamic Midcap | Diversified within Sector

Financial Services (sub-Industries)	Stocks in Dynamic Midcap	Thesis
Banks (Private & PSU)	AU SFB	Small Financing
Market Infra & Intermediaries	BSE	Growing market share & volumes
Asset Management	HDFC AMC	Competing with Banks for deposits
Insurance – General, Health, Life	-	-
NBFC
- Consumer Financing (Unsecured)	AU SFB	Small Financing
- Commercial Financing (Secured/Unsecured)	Shriram Finance	Vehicle & MSME Financing
- Home Financing	Aavas Financiers	Secured Financing
- Power/Infra Financing	PFC	Cheapest & diversified exposure to growing renewable & non-renewable industry

Dynamic Midcap | Thematic Allocation

Themes	Sectors/Industry	31-Mar-23	30-Jun-23	30-Sep-23	31-Dec-23	31-Mar-24	30-Jun-24	30-Sep-24	31-Dec-24	31-Mar-25
Defensives	IT, FMCG, Healthcare, Pharma, Cash	80.9%	59.7%	41.6%	32.3%	40.1%	32.0%	36.6%	41.2%	46.4%
Consumer/Rural Recovery	FMCG, Auto, Small Financing, Durables, Packaging	16.0%	28.5%	40.9%	47.0%	43.4%	38.1%	39.5%	33.4%	22.8%
Capital Expenditure	Infra, Construction, Defence, CG, Mining	2.7%	3.8%	13.7%	11.7%	11.2%	12.2%	12.7%	13.3%	16.4%
Credit Boom	Financials	9.3%	18.8%	28.6%	27.3%	25.5%	19.7%	14.1%	10.6%	10.4%
Export Oriented	IT, Chemicals, Pharma	5.3%	7.9%	16.9%	18.5%	16.6%	20.2%	20.9%	19.5%	21.5%

Capital Expenditure Theme - Not added new stock after Sept’24. Increasing Allocation in selective stocks while maintaining constant exposure at the theme level.
Defensive Theme is diversified among industries, size & bucket (hospitals, Pharma, FMCG, IT)
- Dodla is a small cap while Patanjali is a Midcap

Key Takeaways | Product Level Differentiation

Diversified across Size

Target set at 65-70% Midcap allocation
Size must confirm Bucket – L/M/S must fall in either of the Bucket
L/M/S allocation across all baskets
Various sectors across L/M/S size
Cash is tactical – helps during market volatility

Deliberate diversification to all sectors – Cyclical sectors as well

Diversification across various industries within a sector
Stock allocation is a risk-return tradeoff
Churning/Sector rotation based on market opportunity

Diversified across Themes

Thematic allocation indicates market opportunity – changes with the market
Each theme is diversified across sectors, size and bucket

Dynamic Midcap |Thematic Allocation

Themes	Sectors/Industry	31-Mar-23	30-Jun-23	30-Sep-23	31-Dec-23	31-Mar-24	30-Jun-24	30-Sep-24	31-Dec-24	31-Mar-25
Defensives	IT, FMCG, Healthcare, Pharma, Cash	80.9%	59.7%	41.6%	32.3%	40.1%	32.6%	36.6%	41.2%	46.4%
Consumer/Rural Recovery	FMCG, Auto, Small Financing, Durables, Packaging	16.0%	28.5%	40.9%	47.0%	43.4%	38.1%	39.5%	35.4%	22.8%
Capital Expenditure	Infra, Construction, Defence, CG, Mining	2.7%	3.8%	13.7%	11.7%	11.2%	12.4%	13.0%	12.8%	19.3%
Credit Boom	Financials	9.3%	18.8%	23.6%	27.3%	25.5%	19.6%	17.9%	14.1%	10.4%
Export Oriented	IT, Chemicals, Pharma	5.3%	7.9%	16.9%	18.5%	16.6%	20.2%	20.9%	15.6%	21.0%

Capital Expenditure Theme - Not added new stock after Sept'24. Increasing Allocation in selective stocks while maintaining constant exposure at the theme level.
Defensive Theme is diversified among industries, size & bucket (hospitals, Pharma, FMCG, IT)
- Dodla is a small cap while Patanjali is a Midcap

Example | Ethos Ltd.

Example | UNO Minda

Key Takeaways |Execution

Strict Price discipline during both buying & selling
Buying & Selling decisions are based on both fundamentals & market opportunity
Regular profit booking
- Re-entered Dalmia Bharat Cement after generating ~18% returns in the first trade (over 9 months)

Winners & Losers

Winner (Currently in Portfolio)

Company	Sector	Basket	Size	Abs. Return on Avg. Buy/Sell Prices
Shriram Finance Ltd	Financial Services	GS	Largecap	73%
Lloyds Metals And Energy Ltd	Metals & Mining	G	Midcap	72%
Max Healthcare Institute Ltd	Healthcare	G	Midcap	71%
BSE Ltd	Financial Services	GM	Midcap	49%
UNO Minda Ltd	Automobile and Auto Components	G	Midcap	40%
Aavas Financiers Ltd	Financial Services	G	Midcap	28%
Patanjali Foods Ltd	FMCG	M	Midcap	16%

Winner (Exited Positions)

Company	Sector	Basket	Size	Abs. Return on Avg. Buy/Sell Prices
Supriya Lifescience Ltd	Healthcare	G	Smallcap	131%
Samvardhana Motherson International	Automobile and Auto Components	G	Midcap	91%
Eris Lifesciences Ltd	Healthcare	S	Smallcap	49%
Ethos Ltd	Consumer	G	Smallcap	40%
Mrs. Bectors Food Specialities Ltd	FMCG	S	Smallcap	37%
Endurance Technologies Ltd	Automobile and Auto Components	M	Midcap	37%
Astral Ltd	Capital Goods	G	Midcap	35%
KEI Industries Ltd	Capital Goods	GM	Smallcap	29%
L&T Technology Services Ltd	Information Technology	S	Midcap	29%
HCL Technologies Ltd	Information Technology	S	Largecap	26%
The Federal Bank Ltd	Financial Services	S	Midcap	24%
Dalmia Bharat Ltd_1_old	Construction Materials	S	Midcap	18%
Jubilant Foodworks Ltd	Consumer	S	Midcap	17%

Current Setbacks

Company	Sector	Basket	Size	Abs. Return on Avg. Buy/Sell Prices
MaheshS Ltd	Information Technology	S	Midcap	-12%
Hero MotoCorp Ltd	Automobile and Auto Components	SM	Largecap	-16%
KPIT Technologies Ltd	Information Technology	G	Midcap	-16%
PolyCab India Ltd	Consumer	G	Midcap	-20%
Titagarh Rail Systems Ltd	Capital Goods	G	Smallcap	-21%
Ahluwalia Contracts India Ltd	Capital Goods	G	Smallcap	-27%
Mold-Tek Packaging Ltd	Consumer	SM	Smallcap	-38%

Losers (Exited Positions)

Company	Sector	Basket	Size	Abs. Return on Avg. Buy/Sell Prices
APL Apollo Tubes Ltd	Capital Goods	GM	Midcap	-4%
Syrma SGS Technology Ltd	Consumer	G	Smallcap	-12%
Vinati Organics Ltd	Chemicals	G	Midcap	-13%
Poonawalla Fincorp Ltd	Financial Services	S	Midcap	-16%
Sula Vineyards Ltd	FMCG	S	Smallcap	-40%

As on 25th Apr’25
Due to Sectoral allocation balancing, all stocks are not present in all the portfolios

Fee Structure

Particulars	Option II	Option V
Fixed Management Fees	1.5%	2.50%
Hurdle Rate	10%	Nil
Performance Fee	20%	Nil
Exit Load	3%, 2%, 1%, if exited before 12, 24 & 36 months, respectively.

Taxes as applicable.
Other charges at actuals.
The fees mentioned here for respective Investment options are indicative. For complete disclosures on fees and expenses please refer to the Disclosure Document available on the Portfolio Manager's website.
Minimum Capital Investment Rs. 50 Lakhs.
We follow the High Water Mark principle.
Investors have the option to be on-boarded directly for our Portfolio Management Services, without intermediation of persons engaged in distribution services.

About Us

Contact Info

Dynamic Midcap Fund

Equity Markets are Dynamic

MSCI India - Growth/Value Index

MSCI India

Growth

Favorable Environment for Growth Stocks

Favorable Environment for Value Stocks

Investment Strategy | The GSM Framework

Growth-oriented style

Strategic investment style

Value Investing

Special Situations

Margin Expansion Style

Scuttlebutt Analysis

How we think about Risk?

Shallow Drawdowns – Faster Recovery

Drawdown Analysis

How is Dynamic Midcap different from Pratham?

Same-Same but Different

Pratham – Philosophy

3-Drivers

Dynamic Midcap – Philosophy

3-Buckets (GSM)

Same-Same but Different

Pratham – Product

Concentrated :: 10-12 stocks

Execution :

Dynamic Midcap – Product

Diversified :: 18-25 stocks

Execution :

GSM Philosophy – Moving between Baskets

A few examples of Bucket movement

GSM | Moving between Baskets |

Strategic Valuation Basket Analysis

Key Takeaways | The GSM Philosophy

Dynamic Midcap - GSM Strategy

Bucket allocation indicates market opportunity

Buckets are overlapping & change overtime

Net Debt allowed till 0.5x to Equity

Valuation methodology is different for buckets

Max exposure of 12% per stock at any time (on market prices)

Dynamic Midcap | Size Allocation

Dynamic Midcap | Size Allocation

Dynamic Midcap | Sector Allocation

Dynamic Midcap | Diversified within Sector

Dynamic Midcap | Thematic Allocation

Key Takeaways | Product Level Differentiation

Diversified across Size

Deliberate diversification to all sectors – Cyclical sectors as well

Diversified across Themes

Dynamic Midcap |Thematic Allocation

Example | Ethos Ltd.

Example | UNO Minda

Key Takeaways |Execution

Winners & Losers

Fee Structure