Protect Capital INVESTOR

PRESENTATION
April 2018

Create Wealth
1
 Rule No 1: Never lose money
Rule No 2: Never forget rule No 1.

~ Warren Buffet

Successful investing is about

In the short run, the market is a
owning businesses and reaping
voting machine, But in the long
the huge rewards provided by the
term, it is a weighing machine
dividends and earnings growth

~ John Bogle ~ Ben Graham

 WE PROTECT CAPITAL 3

Prudent risk management -

core of our investment philosophy

Investment Universe Staggered Approach Exit Strategy

Diversification across industries Portfolio exposure increased over a Close eye on earnings
Diversification across Mcap with period growth drivers
focus on liquidity: Not averse to raise cash Close eye on valuations
• ≥ 50% in large cap USD1bn+ Continuous monitoring of
• ≤ 10% in one stock risk
• ≤ 30% in one sector,
• ≤ 50% in the top 10 stocks
• Minimum investments in 30 stocks
Flexible investment style: Growth as well
as Value with focus on Margin of Safety
 WE CREATE WEALTH 4

3M Stock
Selection Approach

Market Size Market Share Margin of Safety

Identify Size of Sector Identify top 5 (Profitable) Identify the stock for investment
Opportunity players in the sector with Reasonable Valuation

The company be
Size of the opportunity The company should
consistently profitable
should be huge to provide reasonable growth
and should be among the
generate significant opportunity at reasonable
leading players in the
investment returns Margin of Safety
industry
 LEADING TO MULTIBAGGER RETURNS 5

Purchase Purchase Price(Rs) Gain (%)

Stock
Date Price (Rs) 30-Apr-2018
Motherson Sumi 28-Jan-10 20.5 353 1620%
Maruti Suzuki 29-Jan-14 1659 8815 431%
Siyaram Silk Mills 01-Aug-14 139 681 390%
Eicher Motors* 08-Aug-13 3343 15249 356%
Hitachi Life* 22-May-14 300 1360 353%
Shree Cement 12-Nov-11 3983 16944 325%
Ramco Cements 28-Mar-14 213 824 287%
Bajaj Finance 14-Sep-15 514 1908 271%
Shankara Building Products 06-Apr-17 570 1951 242%
Honeywell Automation 30-Jun-14 5790 18922 227%
Teamlease Services 30-Nov-16 872 2765 217%
3M India 24-Nov-14 6475 20524 217%
Eveready* 29-Sep-14 102 302 196%
Timken India 22-May-14 233 688 195%
HDFC Bank 28-Oct-10 670 1944 190%
Bayer Cropscience* 05-May-14 1427 4052 184%
HDFC 10-Dec-10 669 1883 182%
Indo Count Industries* 19-Dec-14 297 785 164%
Minda Industries 06-Mar-17 444 1103 148%
Whirlpool Of India 02-Mar-16 644 1579 145%
Capital Trust* 29-Jun-15 253 601 138%
Mannapuram Finance* 16-Dec-15 29 69 135%
Raymond 09-May-16 476 1112 134% Note: Purchase price adjusted
Infosys 26-Nov-09 537 1200 123% for any corporate action like
ITD Cementation* 23-Feb-15 65 143 120% split/bonus
Bhansali Engineering Polymers 21-Aug-17 88 191 Gain % indicates return since
117% purchase, *Stock sold as per
Gabriel India* 01-Aug-14 55 114 108% price mentioned
 AAA PORTFOLIO SUPERIOR
EARNINGS GROWTH 6

Sensex AAA IOP Sensex AAA IOP Sensex AAA IOP

Earnings Matrix
FY17 FY17 FY18E FY18E FY19E FY19E
EPS G(%) 1% 21% 12% 24% 18% 24%
ROE(%) 13% 17% 13% 16% 15% 17%
P/E(x) 23.2 36.8 19.7 27.1
P/BV(x) 3.1 6.0 2.9 5.0
Source: AAA Research

EPS Growth(%) ROE(%)

24 24 17 17
16
21 15
18 13 13

12

FY17 FY18E FY19E FY17 FY18E FY19E

AAA IOP Sensex AAA IOP Sensex

Source: AAA Research Source: AAA Research
 WEALTH CREATION – A CASE STUDY 7

Indo Count Industries Ltd Hitachi Home and Life

Solutions Ltd
Global home textile segment of $74bn growing at 5% India expected to become the 5th largest consumer durables

M1 USA imports 17% made ups with imports growing at ~12%

Huge opportunity to improve market share for Indian
market by 2025, reaching $400 Bn by 2020
Total Size of Indian A/C industry pegged at Rs.14750 Crs, with
Market
Size players in USA and Europe volume growth expectation of CAGR 13-15% over FY16-20E
At 3%, India is one of the lowest penetrated market, leading
to significant headroom for growth

4th largest bed sheet exporter to USA & 13th largest globally
Capacity expansion from 36 to 68 mn meters in last 5 years
M2 and further expanding to 90 mn meters
Market Focus on improving value chain by entering premium bed
Share
linen segment leading to improved operating margins
No major investment in backward integration – leading to
highest ROE of 44% in the industry
Market share of ~8%
Entry into Tier 2&3 markets with sub premium product
to improve its market share
Launched new products to reach mass consumer levels
Strong parentage means access to new technology to
offer world class products to Indian consumers

Reported healthy revenue and profit growth in last 5 years Expect significant growth in profitability backed by

M3 Ongoing expansion will lead to healthy profit growth over

next 2-3 years
operating efficiency and higher volume growth
Market cap at Rs 800 crs, i.e. PER of below 10x FY15E –
Margin
of Purchased at one year forward PE of ~6x significantly lower lowest in the industry compared to all consumer MNC
Safety considering its net profit size (Rs 100 crs+ FY14) and 45% ROE which trades at average PE of >20x
 THE INVESTMENT PROCESS…. 8

1 Stock
Identification

Identify emerging trends and opportunities from a

2 Analysis & Decision making
Process

Initial screening
universe of 450 companies
Corporate meeting and detailed due diligence
Filter approach – using variety of valuation
Identify sustainable competitive advantage
parameters
Focus on earnings, free cash flow, ROE, long term
growth and profitability trends

3 Portfolio Construction
Monitoring & Nurturing
Combination of Top Down and Bottom Up approach with a
benchmark agnostic strategy to achieve Long term
4 Exiting & Realizing
Value

Constant evaluation of valuation metrics to

decide optimum return potential
investment objective
Intrinsic value V/s Current Market Price to
Continuous portfolio monitoring ensures prudent risk
evaluate Margin of Safety
management
Change in underlying assumptions of investment
Regular interaction to provide strategic inputs to strengthen
thesis
systems, controls and CG in line with best practices
 EXIT STRATEGY AS IMPORTANT AS
ENTRY STRATEGY 9

Exit from Sensex Exit from Sensex Name of company Peak Price Low Price
01 Jan 2011 Vs 30 May 2016 vs (Rs) (Rs)
01 Jan 2001 01 Jan 2011
MTNL 200 10
ACC DLF
Reliance Infra 2500 309
Ambuja Cement Hindalco
DLF 1200 72
Bajaj Holdings Jaiprakash Associates
Jaiprakash Associates 312 5.5
Castrol India JSPL
Reliance Communication 820 12
Reliance
GSK Pharma
Communication Tata Power 155 56
Grasim Sterlite
HPCL Tata Power
MTNL
Novartis
Ranbaxy Monitoring of the Portfolio is critical
Reliance Infra
Reliance Petro
Satyam
Zee
Market
Outlook
 ROUND UP – APRIL 2018 11

Global macro data continues to be positive – China’s GDP in Q1CY18 grew by 6.8%, led by both domestic and exports growth. Some of the top
corporates from US, like Intel, Macrosoft, Amazon, Starbucks, have reported better than expected results and have given better outlook for
the year. The heightened words of war between US and China on trade escalations, have significantly subsided now. Geo-politically – a
momentous occasion for the world when North Korean leader, stepped across the border onto the Southern side for peace talks with his
counterpart. If we recall, just a few months back, it was one of the biggest risks to the markets. Even more surprising is NK’s offer to
completely denuclearize after only recently gaining the technology and the capability to strike any part of the US. Crude oil at elevated levels
continues to be a worry as OPEC is now talking about $80/bbl. Another factor to watch is US 10 year G Sec yields, which crossed 3%.

India: As transactions are the most basic economic activity that takes place, measuring them paints a fair picture of economic activity at
ground level. RTGS (~72% share of total adjusted transaction value) transactions reported 25% growth (Apr-Feb18). This is real encouraging
data point and points to improvement in economic recovery. This is further supported by encouraging IIP which grew by 7.1% (Feb18) - 4th
straight month of 7%+ growth vs. 2.5% for Apr-Oct17. The recovery is broad based and is led by automobiles and capital good goods.

IMD has forecasted normal monsoon for 2018 – good news for inflation, farm income and positive implication for growth. CPI retail inflation
in Mar18 fell to 4.3%, however, core CPI remained sticky at 5.4%. Higher petro-product & metal prices, higher MSP for agri products,
staggered impact of States’ HRA implementation (7th Pay Commission reco) and INR’s ~5% depreciation (CYTD) vs. USD may further feed into
the inflation, thus, necessitating RBI to review its stance on the interest rates. While RBI in its credit policy review toned down the hawkish
view and reduced the inflation target, the Monetary Policy Committee (MPC) in its minutes appears to be more hawkish and cautious on
inflation. The 10 year G Sec yields have also moved up from recent low 7.15% to back to 7.75% (seen in early Mar18).

Encouraging growth in digital transactions, improvement in IIP, strong commercial vehicle volume growth, recovery in non-food credit growth,
government thrust on Infra and rural focus spend makes us positive on Indian corporate earnings growth over next 12-18 months. While state
election/global factors will continue to make market volatile, we are positive on Indian equity with 3-5 year view.
 AADHAR CARD – FINANCIAL INCLUSION 12

Jan Dhan
Reported Savings
30 Cr Minsitry/Dept Scheme
(Rs Bn)
G (%)
Aadhar linked Bank
accounts opened FY16 FY17

Petroleum &
PAHAL 215.8 297.6 37.9%
Natural Gas
5.9 Cr (60%) Food & Public
Distribution
PDS 101.9 140 37.4%
Aadhar linked
MNERGS Cards Rural
MGNREGS 30 117.4 291.4%
118 Cr (98%) development

UID Enrollments NSAP 2.5 4.0 60.2%

12.3 Cr (71%) Others Others 11.2 11.2 0.0%
Aadhar linked LPG
Connections
Total 361.4 570.3 57.8%

Source: DBT Portal

11.4 Cr (45%)
Aadhar linked
ration cards

Source: UIDAI, RBI, Ministry Of Finance

 GST- SIZE OF OPPORTUNITY FOR
ORGANISED SECTOR 13

Demonetisation and GST will lead to market share shift from unorganised to organised sector, leading to 3-10x
increase in Size of opportunity in the listed equity space.

100

90
4-5x
80
Unorganised Share(%)

70 Diagnostics
Dairy
Plywood
60 Apparels

50

40 Tiles
Packaging
30
Electrical
Plastics
6-9x
20
Equipment
10

0
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00
Size of Opportunity (Organised Sector)(no of times over 10 years)

Source: Edelweiss, AAA Research

 DRIVERS OF GROWTH – INVESTMENT
BY GOVERNMENT 14

Capital Expenditure Growth(%) Railways Expenditure growth (%)

30 35
25.8 32
25 30
20 25
19
15 12.6 20
10.7 16
10 15 12
6.1 11
5 10
0.6 5
0 5
-0.6 0
-5
FY12 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY18E

Source: Emkay Research, AAA Research Source: Emkay Research, AAA Research

Highway Project Awarded(kms) Highway Project Completed(kms)

16000 15000 45
30000 Length completed (km) Km/day(RHS)
25000 41 40
14000
25000 35
12000
20000 30
10000
16271 8231 25
8000 23
15000 6061 20
5732
9794 10098 6000 5013 16 4410 17
10000 7980 14 4260 15
4000 12 12
10
5000 3621
1916 2000 5

0 0 0
FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY12 FY13 FY14 FY15 FY16 FY17 FY18E
Source: IDFC Research Report, AAA Research Source: IDFC Research Report
 INDIA ECONOMY RECOVERY: LIKELY
REPEAT OF FY03-08 15

GDP Growth(%)
9.5 9.6 9.3
8.6 8.9
8.0
7.4 7.6
Average GDP: 7.1% 7.1 Average GDP: 6.9% 7.1
6.7 6.7
5.4
4.5 4.7
4.2
3.8

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source: RBI, AAA Research

IIP Growth(%)
15.5
12.9
11.7

Average IIP: 8.6% 8.6 8.2

7
5.7 5.3
5
2.7 2.9 Average IIP: 2.9% 2.8
2.5 2.5
1.1 0.5

-0.1
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source: CSO,MOSL, AAA Research
 DISSECTING THE ECONOMIC RECOVERY
OF FY03-08 16

Sectoral CAGR FY03-08 (%)

100%
90%

80% 72.3% 73%

65%
60% 62%
60% 53% 54.4%
47.9% 47.3% 45.8% 52.2%
40% 39.7% 43%
32% 38.7%
40% 31% 33% 26.6%
27% 26% 23% 26.1%
22.0% 17.6% 21% 21% 25%
16% 11% 15.6%
20%

0%
PAT

PAT

PAT

PAT

PAT

PAT

PAT

PAT

PAT

PAT

PAT
Revenue
Mcap

Mcap

Mcap

Mcap

Mcap

Mcap

Mcap

Mcap

Mcap

Mcap

Mcap
Revenue

Revenue

Revenue

Revenue

Revenue

Revenue

Revenue

Revenue

Revenue
Auto Banking Cement Consumer Consumer Engineering IT Mining & Oil & Gas Pharma Sensex
FMCG Durables Metal

Source: BSE, AAA Research

Market Cap > Net Profit

25.0% 38.7% Returns Growth
Sensex Net profit CAGR Sensex Returns CAGR
 DISSECTING THE ECONOMIC RECOVERY
OF FY03-08 17

15x

8.7x
7x 6.6x
5.3x 5.1x
3.3x 3.2x
2.7x

BSE Auto BSE Banking BSE Consumer BSE Capital BSE FMCG BSE Healthcare BSE IT BSE Metal Sensex
Durable Goods
Source: BSE, AAA Research

Sensex went up by Cyclical indices went up by

5.1x 5-15x
 FOCUS ON STOCK EARNINGS GROWTH –
EARNINGS GROWTH TO BOUNCE BACK 18

Sensex CAGR
After reporting single digit earnings growth (FY08-17), ??
Sensex is expected to report healthy double digit 7.4%
growth (FY17-20E) Sensex CAGR
16%
EPS CAGR
5.5%
38.7% EPS CAGR
Sensex CAGR FY17-20E

13.9% -1.4% 2110

Sensex CAGR
Sensex CAGR 25% FY08-17 1788
EPS CAGR

45% 1% 1340 1355 1340 1353

1515

EPS CAGR 1183

EPS CAGR FY03-08
1124
1024
833 820 834
FY96-03 718
FY93-96 523
450
348
250 266 291 278 280 216 236 272
181
81 129
FY97

FY08
FY93

FY94

FY95

FY96

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18E

FY19E

FY20E
Source: Bloomberg , AAA Research
 EARNINGS GROWTH CRITICAL
FOR RETURNS 19

BSE500 universe ex PSU Banking and Loss making companies

3.75 years 5.75 years 10.75 years
Net Profit
(Dec-17/Mar-14) (Dec-17/Mar-12) (Dec-17/Mar-07)
CAGR (%)
Market Cap Market Cap Market Cap
No of Companies No of Companies No of Companies
CAGR (%) CAGR (%) CAGR (%)
80% + 10 39.4% 5 36.6%
50-80% 26 47.6% 14 32.8% 4 69.2%
30-50% 45 36.0% 38 37.7% 36 28.1%
20-30% 44 35.2% 57 24.9% 56 22.1%
15-20% 40 26.7% 33 18.6% 51 18.4%
10-15% 41 14.4% 35 16.6% 59 14.0%
5-10% 30 11.6% 51 15.6% 44 13.3%
0-5% 38 14.6% 24 12.5% 32 4.9%
0-(-20)% 59 9.2% 79 6.7% 35 4.9%
Less than -20% 24 0.6% 15 -0.6% 3 0.9%
Total 357 351 320
NIFTY 12.8% 12.7% 9.9%
SENSEX 11.8% 12.5% 9.3%
No of companies
15%+ CAGR Net 165 147 147
Profit
Source: AAA Research
 MARKET VALUATIONS 20

Sensex @35160 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
EPS (Rs) 820 834 1024 1123 1185 1340 1355 1340 1353 1516 1789
EPS G(%) -2% 2% 23% 10% 6% 13% 1% -1% 1% 12% 18%
BV (Rs) 4,441 5,101 5,944 6,842 7,790 8,862 9,540 10,143 10,684 11,290 12,006
P/E(x) 26.0 23.2 19.7
P/BV(x) 3.3 3.1 2.9
ROE(%) 18.5% 16.3% 17.2% 16.4% 15.2% 15.1% 14.2% 13.2% 12.7% 13.4% 14.9%
Source: Bloomberg, AAA Research

27 PER Fwd (x) 5.3 P/BV Fwd (x)

22 4.3

Mean 17.2x
17 3.3

Mean 2.5x
12 2.3

7 1.3
Apr/15

Apr/16
Apr/08

Apr/09

Apr/10

Apr/11

Apr/12

Apr/13

Apr/14

Apr/17

Apr/18

Apr/09

Apr/15
Apr/08

Apr/10

Apr/11

Apr/12

Apr/13

Apr/14

Apr/16

Apr/17

Apr/18
PER Fwd(x) P/BV Fwd(x)
Source: AAA Research Source: AAA Research
 21

The people running the show at

AlfAccurate Advisors
 THE ALF ACCURATE ADVISORS TEAM 22

Rajesh Kothari Govind Agrawal Bhushan Koli

Founder and Director Head Operations
Managing Director and Compliance
 AWARD WINNING INVESTMENT TEAM 23

Founder & Achievements

Managing Director
(Grad CWA, MBA) Received CMA Young Achiever Award 2014

Rated as “Platinum Fund Manager” by Economic Times for DSP ML Equity

Mr. Rajesh Kothari
Fund on a risk-adjusted return basis in July 2006

Rich experience of more than 23 years in Indian capital market Rated as “Gold Fund Manager” by Economic Times for DSP ML Balanced

Expertise in both Long Only & Long Short investment strategy Fund on a risk-adjusted return basis in July 2006

Former Director with Voyager Investment Advisors (US$500m) – CNBC TV18 - CRISIL Mutual Fund of the Year Award 2006 for DSPML Equity

USA based India dedicated fund for two and half years Fund

• During his tenure, fund Outperformed the benchmark Lipper India Fund Awards 2006 for best equity fund group for 3 years

indices significantly DSPML Technology.com Fund - best fund in the equity sector in the IT

Former Fund Manager with DSP Merrill Lynch (now DSP Blackrock) category (5 years, 8 eligible schemes)

Fund Managers Ltd for more than four years He was invited at Maharashtra Economic Summit to present views on

• During his tenure equity assets under management grew Indian Infrastructure

from USD100m to USD1.5bn (http: //maharashtrasummit.mieda.in/Program.aspx)

• The schemes delivered annualized return of 55% (Equity Invited by Institute of Directors to present views on Governance Deficit

Fund) & 62% (Top100 Fund) outperforming benchmark Invited by World Council for Corporate Governance to present views on

indices by more than 20% & 10% respectively Governance

• The equity schemes maintained its “1st Quartile Ranking” Elected on the advisory panel of World CSR forum.

consistently during his tenure Actively involved with Arham Yuva Group - a philanthropic initiative
 GLIMPSES OF SUPERIOR PERFORMANCE
TO BENCHMARK INDEX 24

Consistent Superior returns to Benchmark Index

133.0
85 84.7
70.5 71.7
38.9 29.017.1 33.2
17 18.67.5 11.24.8 28.2 24.0 25.0
5.8 5.6 3.9 9.6 2.5 11.8 6.9 6.5

-6.0 -11 -7.9 -9.1 -7.8

FY03 FY04 FY05 FY06 Jun06-08 FY10* FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 YTD#
Voyager
DSP MerillLynch MF AlfAccurate Advisors

Funds Managed by Rajesh Benchmark Index

4,000
27.0% CAGR
3,500 Rs 1 cr invested in Mar02 is worth presently Rs 35.28 crs
3,000

2,500

2,000

1,500

1,000 13.8% CAGR

500

0
FY03 FY05 Jun06-Dec08 FY11 FY13 FY15 FY17 FY19YTD#

Funds managed by Rajesh BSE 500 Index

*(FY10 is from 23 Nov 2009 - 31 Mar 2010)#(01 Apr 2018 – 30 Apr 2018)
Note: Past performance may or may not be sustained in future
 AWARD WINNING INVESTMENT TEAM 25

Director
(FCA – Chartered
Accountant, LLB)

Mr. Govind Agrawal

Rich experience of 29 years in finance out of which last 23 years in Indian capital market
Achievements
Former Fund Manager with Reliance Capital Asset Management Company (USD 20bn)
for over four years. Represented Reliance AMC on international
• Reliance Emergent India Fund (USD 100m offshore fund) outperformed benchmark platforms and panel discussion on Emerging
indices by 35% since its inception. Markets and Indian Equity Market
• Travelled intensely across globe to meet the investors and presented the firm for
Addressed investors’ meet and the private banking
India and Emerging Market as Investment Theme
teams of large banks in Middle East, Asia, London,
• Played instrumental role in setting up Macro Economic Research desk
Europe and in India
Former Executive Director with UBS Securities India Pvt Ltd, a Swiss Bank subsidiary, for 4
At UBS, was voted as the “Best Equity Sales
years
• Responsible for India Account Manager for large FIIs Person‐Mega Funds category, Asia Money 2006”

• Guided the portfolio managers for right country, sectors and stocks weightings Won several awards at Motilal Oswal for

Former Senior VP – Equity Sales with Motilal Oswal Securities Ltd for 10 years consistently contributing to Institutional Equity
• Played key role in establishing institutional equity broking business, systems and Sales
processes
• Was account manager for major institutional domestic and foreign accounts advising
the clients on sectoral allocation and stock selection
 26

The
AlfAccurate Advisors
philosophy
 ALFACCURATE ADVISORS 27

Vision Credentials Investment

Principle
To be the world’s most We are specialists in Indian Protect Capital, Create Wealth
admired investment advisor capital markets with combined
experience of 70+ years
OUR GUIDING PRINCIPLES 28
INVESTMENT PHILOSOPHY... 29

Constant endeavor to be
ahead of the Market

Emphasis on value research

Vs commodity research

Focus on margin of safety

Long Term Horizon

Benchmark aware but

not driven

Flexible investment style

Fundamental Research core of
our investment management
 COMBINED WITH INVESTMENT
DISCIPLINE... 30

Parameter Rules Current Position

Cap Exposure At least 50% in Mega & large cap (More than USD1bn) 55.9% invested in Mega & Large cap
Sector Weightage Not more than 30% in one sector Maximum exposure in a given sector is 16.1%
Not more than 10% in a given stock and not more than Maximum Exposure in a given stock is 3.7%.
Stock Weightage
50% in the top 10 Stocks Top 10 stocks as percentage of portfolio is 32.3%
Number of Stocks Minimum 30 Stocks 47 stocks
Stock Universe 450 Corporates 450 Corporates

Portfolio Allocation Sector Allocation

10% 4%
31%

30%

25% Agri Input Auto Auto Ancillary

Banking & Finance Cash and Cash Equivalent Cement
Chemicals Consumer Engineering
Mega Large Mid Small Cash Others Pharma Real Estate
Retail Software

47 13 32.3%
Number of Stocks Number of Sectors Top 10 Stocks as % of portfolio Data as on: 30 Apr 2018
 LEADING TO SUPERIOR PERFORMANCE 31

AAA India Opportunity Plan - Equity Vs BSE 500 Index (%)

71.7

29.0 33.2
28.2 24.0 25.0
18.6 17.1
7.5 9.6 11.2 11.8
4.8 2.5 6.9 6.5

-9.1 -7.8

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19YTD#

AAA India Opportunity Plan - Equity BSE 500 Index

FY19
Performance (%) FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 Since Inception*
YTD#
AAA India Opp. Plan 6.9 25.0 28.2 2.5 71.7 29.0 11.2 9.6 18.6 493.4

BSE 500 Index 6.5 11.8 24.0 (7.8) 33.2 17.1 4.8 (9.1) 7.5 126.0

BSE Sensex 6.6 11.3 16.9 (9.4) 24.9 18.8 8.2 (10.5) 10.9 104.7

CNX Nifty 6.2 10.2 18.5 (8.9) 26.7 17.9 7.3 (9.2) 11.1 110.4
*(23 November 2009 – 30 April 2018)(Performance after all expenses & fixed management fees); #(01 April 2018 – 30 April 2018)
AAA India Opp. plan consistently not only outperformed but also generated Positive return in volatile markets
Note: Returns of individual clients may differ depending on time of entry in the Strategy. Past performance may or may not be sustained in
future and should not be used as a basis for comparison with other investments
 LEADING TO SUPERIOR PERFORMANCE 32

Since
Compounded Annual Returns (%) 1 YEAR 2 YEARS 3 YEARS 5 YEARS
Inception*
AAA India Opp. Plan PMS 24.5% 28.4% 21.1% 30.4% 23.6%
BSE 500 Index 15.9% 20.3% 12.0% 15.3% 10.2%
BSE Sensex 17.5% 17.2% 9.2% 12.5% 8.9%
CNX Nifty 15.4% 17.0% 9.5% 12.6% 9.2%
*(23 Nov 2009 – 30 Apr 2018)(Performance after all expenses & fixed management fees)
Performance Vs leading Mutual Funds since inception(%) Average Monthly Rolling Returns since inception(%)
25.3 25.6 26.3
493.4

258.4 11.2 10.6 11.2

186.3
150.9 126.0
84.9 104.7 110.4

AAA India Quartile 1 Quartile 2 Quartile 3 Quartile 4 BSE 500 BSE CNX Nifty 1 Year 3 Year 5 Year
Opp. Plan* Index Sensex
AAA India Opp. Plan BSE 500 Index
Source: Bloomberg *Since Inception (23 Nov 2009 – 30 Apr 2018)(Performance after all expenses & fixed management fees)

AAA India Opp Plan ranks # 1 compared with 141 diversified funds of each reputed fund house

Note: Returns of individual clients may differ depending on time of entry in the Strategy. Past performance may or may not be sustained in
future and should not be used as a basis for comparison with other investments
LEADING TO SUPERIOR PERFORMANCE 33

AAA IOP PMS

Outperformed
BSE 500 Index :
28 out of 33
trailing quarters
 RISK ANALYSIS:
AAA IOP PMS PERFORMANCE COMPARED TO BENCHMARK 34

AAA IOP BSE500

Parameters How to read ratio AAA IOP PMS performance
PMS Index

Less than 1 beta is good sign as it Beta of less than 1 shows AAA PMS has
Beta 0.86 1.0
denotes lower volatility of the portfolio lesser volatility compared to BSE500 Index

Top Performing Midcap MFs have Sharpe

Excess return per unit of deviation.
Sharpe Ratio 1.2 0.2 Ratio 0.75+. AAA IOP PMS Sharpe ratio is one
Higher the Sharpe ratio, better it is.
of the best in the industry.
AAA IOP SD is less than Benchmark as well as
Standard deviation denotes amount of
Standard Deviation 13.9 14.5 peer group which shows portfolio has lower
variation
risk
Upside capture ratio of more than 100
It denotes overall performance of PMS
Upside capture 179.9 100.0 indicates that fund has outperformed
during up markets.
Benchmark during positive markets.
Ratio of less than 100 indicates, fund has
It denotes overall performance of PMS
Downside capture 80.2 100.0 outperformed Benchmark during negative
during down markets.
markets.
Capture ratio >1 indicates, Investment
AAA PMS capture ratio is healthy as it
Manager has gained more during up
Capture Ratio 2.24 1 protected capital during negative markets
(positive) markets and lost less during
and building wealth consistently.
down (negative) markets.
Data is analysed since inception of AAA IOP PMS data i.e. 23 Nov 2009 – 30 Apr 2018
 AAA IOP PMS ROLLING RETURN ANALYSIS
35

AAA IOP BSE500 AAA IOP BSE500 AAA IOP BSE500 Index
Monthly Rolling Returns Analysis(%)
1 Year Index 1 Year 3 Years Index 3 Years 5 Years 5 years

No of obervations 91.0 91.0 67.00 67.00 43.00 43.00

No of Positive Observations 85.0 70.0 67.00 61.00 43.00 43.00

No of Negative Observations 6.0 21.0 0.00 6.00 0.00 0.00

Loss Probability (%) 6.6% 23.1% 0.0% 9.0% 0.0% 0.0%

Average Returns (%) 25.3% 11.2% 25.6% 10.6% 26.3% 11.2%

Median Returns (%) 19.3% 7.9% 26.7% 11.9% 26.5% 11.9%

Maximum Returns (%) 88.8% 51.3% 41.0% 22.9% 30.6% 16.0%

Minimum Returns (%) -13.8% -27.4% 6.2% -4.2% 21.9% 5.6%

Since Inception (23 Nov 2009 – 30 Apr 2018) (Performance after all expenses & fixed management fees)

AAA has delivered average returns of 25.3%, 25.6% and 26.3% for 1 year, 3 years and 5 years respectively on
monthly rolling return basis
Negative returns for 3 years and 5 years rolling periods are 0

Note: Returns of individual clients may differ depending on time of entry in the Strategy. Past performance may or may not be
sustained in future and should not be used as a basis for comparison with other investments
THE POWER OF COMPOUNDING –
A SCENARIO ANALYSIS 36

Scenarios based on investment of Rs 5 Crores

The real power of compounding is seen only over the long term
 37

Why we should be your choice of

Investment Advisory
WHY WE SHOULD BE YOUR CHOICE OF
INVESTMENT ADVISORY 38

Access to Founders – founders are fund managers

Process driven organization

Award winning investment team and track record

Client centric business model

Strong domain knowledge in Indian Capital markets

Expertise in both – Long Only and Long Short Investment Strategy

Sound Research capabilities

Staggered investment approach

Integrity and ethics as the core of the business

Adequate infrastructure to support scalability

No conflict of interest
PRODUCT FEATURES 39

Name of plan AAA India Opportunity Equity PMS Plan

Objective Long Term Capital Appreciation

To invest in listed companies with combination of high
Investment Theme
growth stocks as well as value stocks
Principal Officer Rajesh Kothari

Director Govind Agrawal

Custodians Deutsche Bank, India

Fund Accountant Deutsche Bank, India

Depository Participant IL&FS, India

Mode of payment Fund transfer/cheque/stock transfer

 AWARDS AND RECOGNITIONS 40

Dr. Jitendra Singh, Union Minister of State

Lipper Fund Award – India 2007
(I/C), Prime Minister Office, giving
Certificate of Merit – CMA Young Achiever
Award – 2014
 Thank You
Contact us
AlfAccurate Advisors Pvt. Ltd
503, B Wing, Naman Midtown,
Elphinstone Road,
Mumbai - 400 013, India
T : +91 22 42360300; F : +91 22 42360333
info@alfaccurate.com
www.alfaccurate.com

Rajesh Kothari Govind Agrawal

T : +91 22 4236 0301 T : +91 22 4236 0311
M : +91 98200 09226 M : +91 93208 51013
rajeshkothari@alfaccurate.com govindagrawal@alfaccurate.com

Disclaimer: Equity Investments are subject to market risks , read all plan related documents carefully. This document is not for public distribution and has been furnished to you solely
for your information and may not be reproduced or redistributed to any other person. This material is for the personal information of the authorized recipient. The material is based
upon publicly available information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon. Opinions expressed are our
current opinions as of the date appearing on this material only. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be
subject to change without notice. Past performance may or may not be sustained in future. No part of this material may be duplicated in any form and/or redistributed without
AlfAccurate Advisors Pvt Ltd.'s prior written consent. In so far as this report includes current or historical information, it is believed to be reliable, although its accuracy and
completeness cannot be guaranteed. Alfaccurate Advisors Pvt. Ltd and any person connected with the firm, does not accept any liability arising from the use of this document.