BRS T BR BRS BRST BRST BRST BRST BRST BR BR BR BRST BR BRST BRST BRST BRST BRST BRST BRST BRST BR Invests in emerging wealth creators Motilal Oswal MOSt Focused Midcap 30 Fund BR BRST BRST BRS BRST BRST BRST BRST BRSTBR T BRST BRST BRST BRST BRSTBRST BRST BRST BRST BRST BRST BRST BRST BRST BRST BRST BRS BRS BRST BRST (An open ended equity scheme)
Product Labeling Ÿ Riskometer Low High Moderate at Moderately High risk Investors understand that their principal will be and potential for growth 2 30 quality midcap companies having related instruments in a maximum of long-term competitive advantages Investment in equity and equity Ÿ Name of the scheme This product is suitable for investors who are seeking* Motilal Oswal MOSt Focused Midcap 30 *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Midcap 30) Fund (MOSt Focused (An open ended equity scheme) Long-term capital growth Moderately Moderately High Low w o High L
33 Sit Tight Approach in diluting returns for our investors and adding diversification but over-diversification results n u m b e r. We b e l i e v e i n a d e q u a t e portfolios with 20 to 25 stocks being our ideal Focus: Our portfolios are high conviction skill. from the entire growth cycle needs even more businesses to enable our investors to benefit business needs skill and holding onto these investors and believe that picking the right Buy and Hold: We are strictly buy and hold QGLP At Mo�lal Oswal Asset Management Company (MOAMC), our investment philosophy and inves�ng style is fair business for a good price business for a fair price rather than buying a ‘P’rice denotes our approach of buying a good the business competitive advantage or economic moat of ‘L’ongevity denotes longevity of the sustained RoE ‘G’rowth denotes growth in earnings and management ‘Q’uality denotes quality of the business and Buy Right Stock Characteristics centered on 'Buy Right: Sit Tight‘ principle. market risk
>110 billion High institutional holding success Midcaps offer excellent balance between strong growth and a demonstrable history of management The sweet spot of the Indian markets is replete with investment ideas in the midcap space Source : Bloomberg & Internal Analysis, Data as on 31 December 2014 st Business models not established Many fail at pre-emergence stage Demonstrated management history High growth Under-researched , Under-owned Moderate Growth MOSt Focused Midcap 30 targets an unique Extensively researched the equity market Sweet spot of No. of Companies Market Cap 2,254 602 148 <6 billion 6 billion-110 billion and relatively untapped opportunity 4
MOSt Focused Midcap 30 aims to capture struggle for survival Organic growth often flatten growth cycle Enters the Virtuous ‘Emergence to Endurance’ winners (a) Decline (b) Renewal Maturity Endurance struggle Growth Time 5 Pre-emergence Introduction EMERGENCE POINT OF PAT Mapping Emergence and Endurance to a company’s typical lifecycle Source: 18th Motilal Oswal Wealth Creation Study (WCS) * Emergence: A company is said to have emerged when it crosses the threshold ROE of 15% for the first time in its history Motilal Oswal 18th Wealth Creation Study (WCS) maps the journey of Emergence* to Endurance growth cycle, a majority of such companies being midcaps The study highlights how large investment gains were made by identifying players entering their virtuous Uncommon Profit T A P d l o h s e r h t E O R % 5 1
th 33 42 bn July’05 21 bn 552 bn 563 bn 411 bn 475 bn 225 bn 40 26 26 30 bn 60 Successful ‘Emergence to Endurance’ leads to disproportionate wealth creation Companies which have successfully transitioned from Midcap to Large cap have created disproportionate wealth (average MCap. CAGR of 52%, over FY05-13 for above companies) Outstanding earnings growth tends to be a key feature in this journey of wealth creation July’05 July’05 Source : Bloomberg & Internal Analysis, 17 January 2014. Lupin The Stocks mentioned herein are for general and comparison purpose only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. Past performance may or may not be sustained in future 6 92x 14x 11x 11x 11x Axis Bank Kotak Bank Asian Paints 50 bn IndusInd Bank Market Capitalization on inclusion in Nifty Free Float Midcap 100 Index Current Market Capitalization as part of Nifty 50 PAT CAGR (FY06-13)(%) July’05 6.0 bn July’05 (average PAT CAGR of 37%, over FY05-13 for above companies)
Source: 19th Motilal Oswal Wealth Creation Study (WCS) Data for FY2015. 45 11 11 20 28 3,947 3,726 45 5 155 209 217 263 435 454 785 7 5 Total Corporate PAT -9 -166 -2 -3 -5 -5 -7 -14 4 -27 -41 -52 100 94 1 1 1,117 Total of Above The sector mentioned herein are for general and comparison purpose only and not a complete disclosure of every material fact. It should not be construed as Sector Financials 10 Lowest profit generating sectors 2014 PAT (INR Billion) Sector % share 2014 PAT (INR Billion) 10 Highest profit generating sectors Technology - Software India Inc's Profit Pool breakdown by sector of large or expanding Industry Profit Pools ‘Emergence to Endurance’ winners are products of this pool and emerge a Value Creator over time. If an industry has a high profit pool, a company with the right value proposition/strategy can claim a rising share 7 investment advice to any party. Past performance may or may not be sustained in future. Oil & Gas Metals & Mining Glass & Glass Products Alcoholic Beverages Technology - Hardware Hotels & Restaurants Computer Education Ship-building Trading Telecom Equipment Sugar Airlines Automobiles Total Corporate PAT Total of Above Auto Ancillaries Cement Healthcare Consumer - Non-durables Utilities - Power 3,947
8 67 TTK Prestige Godrej Consumer Lupin Supreme Industries GSK Consumer GRUH Finance Grasim Industries Wockhardt Page Industries Eicher Motors TTK Prestige 67 Coromandel Intnl. 68 69 73 78 84 88 93 94 not be construed as investment advice to any party. The stocks may or may not be part of our portfolio/strategy/ schemes. Past performance may or may not be sustained in future The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. It should Source : Bloomberg & Internal Analysis, 19th Motilal Oswal Wealth Creation Study, Data as on 28th February, 2015 Calendar Years LIC Housing Finance Eicher Motors 10.1 45 40 41 47 48 50 52 54 57 89 44 45 47 Indusind bank 47 50 50 51 59 95 GSK Consumer Titan Ind Bata India Jindal steel MMTC 10.3 14.1 2014 5 Year Price EPS EBITDA Revenue Company Company CAGR% 5 Year Price CAGR% 5 Year Price Company CAGR% Ipca Labs 5-Yr CAGR(%) Havells India Aurobindo Pharma HCL Technologies IndusInd Bank Page Industries Amara Raja Batteries Supreme Inds Bajaj Finance Eicher Motors 2012 2013 Dividend 7-Yr CAGR(%) 15.8 Nifty Free Float 13.8 16.1 20.0 20.9 Midcap 100 Index Nifty Free Float 11.2 8.6 20.4 19.0 Midcap 100 Index 12.0 Nifty 50 Index 6.4 11.4 15.0 12.0 6.4 11.4 15.0 Motilal Oswal Wealth Creation Study (over 2012-2014) Fastest Wealth Creators Midcaps: High on Growth and Speed of Wealth Creation Midcaps have typically grown higher than large caps over 5 and 7-year Over the years, majority of the fastest wealth creators, in ‘Motilal Oswal Wealth Creation Study (WCS)’ have been Midcaps Nifty 50 Index 39
Promoters 0 Midcaps: Under-Researched & Under-Owned 9 Ni�y 50 Ni�y Free Float Midcap 100 Research Coverage 0% 20% 40% 60% 80% 100% 5 Under Researched: 10 15 20 25 30 35 40 45 50 55 % of Companies Covered Number of Analysts Covering a Company Fewer analysts cover midcap companies significantly lower than those in large caps FII & FDI Nifty 50 FI & Banks Insurance & MF Public Others Total 44% 25% 2% 11% 7% 11% 100% Ownership Nifty Free FII and MF ownership levels in midcaps are Float Midcap 100 Index 60% 13% 1% 7% 8% 10% 100% Source: Capitaline and MOAMC internal analysis, Data as on Jun 30, 2016. Source: Bloomberg & MOAMC Internal Analysis, Data as on Sep 30, 2016. Under owned:
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