Equirus PMS

PMS Rating

IME PMS Rating

4 of 5 stars

Highly recommended for aggressive investors looking for Small Cap focus: Equirus PMS has had a good start with a strong performance of its portfolio since its launch in 2016. Its focus on small-caps fits well with the group's strengths in small & midcaps on the broking side and the experience of their PMS fund manager Viraj Mehta. Equirius has the foundations to build a niche PMS business driven by the experience of the main fund manager, and the differentiation through a small-cap focus.

The PMS/AIF AMC Rating is derived on the basis of our analysis on 5 key qualitative parameters that we use to analyse the quality of a PMS/AIF Provider. These include an assessment of the size of the AMC, the pedigree of the AMC, the pedigree of the team, the value of the investment philosophy & the level of differentiation. These insights of our central research team are documented in the IME RMS, and can be accessed during a consultation call with an IME PMS specialist.

PMS Background

Discretionary AUM (796cr) | Promoter Category ()

AMC Background

Equirus PMS is the PMS arm of the Equirus group. Equirus is a young (founded in 2007) financial services group, that started with investment banking in 2007, which was followed by their institutional equities business in 2010 and their PMS offerings in 2016. Rakesh Jhunjhunwala and Federal Bank hold 13% and 20% stake respectively in Equirius Wealth.

Investment Process

Equirus PMS follows a blended approach of investing in quality & value. The aim is to invest in relatively undiscovered businesses with long-term growth potential that are available at a price below their intrinsic value. The philosophy is essentially GARP (Growth at Right Price).

Investment Framework

  • Growth: Earnings driven by sales and margin expansion
  • Financial Strength: no or low debt, and deleveraging situations with higher coverage ratios
  • Profitability: High ROCEs driven by improving margins and/or asset turns
  • Management: High integrity with skin in the game and prudent capital allocation
  • Attractive Valuation: low analyst coverage/institutional holding and market ignoring long term potential

Inv Team

Investment Team

Viraj Mehta | 4-star rated FM

Portfolio Manager | 14 yrs Experience | 8 yrs at current firm

Past Experience: Investment Professional (ValueQuest Capital LLP), Equity Investment Analyst (Franklin Templeton Investments), Midcap Equity Analyst (Equirus Securities Private Ltd)

Viraj Mehta has over 11 years of experience in investing with a proven track record (primarily in equity research). Viraj was selected by Wall Street Journal as part of the “Asia’s Master Stock Picker” series for India, and he has rich equity research experience at Franklin Templeton.

Gaurav Arora | 2-star rated FM

Fund Manager | 14 yrs Experience | 2 yrs at current firm

Past Experience: VP (Avendus Capital), AVP (Kotak Institutional Equities), Assistant Manager (Tata Motors)

Gaurav comes with a decade of experience. Previously, he was the Vice President at Avendus Capital for 5 years (managing UHNI non-discretionary portfolios), prior to which he wasAssociate Vice President at Kotak Securities (Institutional Equities). Equirus is Gaurav’s first role as a fund manager, and he is yet to establish his fund management credentials.Gaurav is a graduate of IIM-C and BITS Pilani.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

Scheme Category Style 1 yr 3 yr 5 yr Since Inc
Equirus Core Equity Flexi Cap GARP 24.3 20.9
Equirus Long Horizon Small Cap GARP 53.7 22 30.7 24

Returns as of 28-Feb-24.

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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.