Group members

IAPM PROJECT REPORT – 2

GROUP MEMBERS-
SHIVAM TANAY (0071/58)
SHAH KARAN KAMLESHBHAI (0083/58)
MADHURA MILIND RASTE (0175/58)
PRAGATI BAJAJ (0199/58)
CHINMAY LIMAYE (0206/58)
SAPTASHWA SEN (0458/58)
Encapsulating our investor’s preference and risk appetite, we have allocated the following
amount among the various asset classes:

• 
  Equity – 59.85%
  
• 
  Debt Securities – 30%
  
• 
  Money Market Securities – 20%
  
• 
  Derivatives – 0.15%
  

Equity (~60%)


Investment Strategy:

We followed the investment strategy of Coffee Can investing by Saurabh Mukherjea. The strategy shortlists

Companies with ROCE of over 15%. We have allocated around 65% in large cap and 35% in mid/small cap
stocks.

The following is the criteria we used for selecting the equity stocks based on Coffee Can Investing.

• 
  Sales growth >10
  
• 
  Return on equity > 15
  
• 
  Average return on capital employed 10Years > 15
  
• 
  Market Capitalization > 3000
  
• 
  Price to Earning < 1.5*Industry PE
  
• 
  Return over 10years > 0
  

Beyond this, we also looked at any past issues of corporate governance and current management. We relaxed a few criterias for companies like HDFC which we feel will deliver long term growth because of company specific strengths

Stock specific constraints:

We also applied certain constraints on the equity portfolio:

• 
  65% exposure to large cap stocks and 35% to mid and small cap stocks
  
• 
  No stock with >10% allocation
  
• 
  No short position on stock