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Girik PMS

PMS Rating

IME PMS Rating

4 of 5 stars

Highly recommended for investors looking for aggressive investors with a conventional approach: Girik Capital has established its credentials as a niche founder-managed PMS provider, with a strong 10-year track record of consistent investment performance.

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 (949cr) | Promoter Category ()

PMS Background

Girik Capital was founded in 2009 by Charandeep Singh (an ex-investment banker at Lehman Brothers in New York). Charandeep returned to India to form Girik Capital, following the collapse of Lehman Brothers post the sub-prime Crisis.

PMS Investment Philosophy

Girik Capital aims to find emerging structural opportunities at early stages, focusing on companies with a large market opportunity, scalable business models, market leadership, strong governance, capable management and a consistent track record.

Screening of Stock selection 

  • Industry Strength: Industry strength when compared to other industries; 50% of a stock performance tied to the industry group; shortlist leading stocks in leading industries. 
  • Relative Price Strength: Look for leading price performers; 52 week and lifetime highs; winners show price strength early in a bull cycle. 
  • Earnings Acceleration: Having a stable historical earnings; Accelerating current annual and quarterly earnings; Immense future earnings growth potential   

These strengths are contributed by searching for leader by looking at Product/service leadership, businesses having the ability to scale, having a management track record, allocating capital efficiently & delivering superior return ratios, having a governance standards & alignment of interest,

Fundamental Research and Checklist 

  • Business Model: Product/Service leadership; Market Size & opportunity; Management efficiency-superior execution & delivery 
  • Financial Metrics: Superior return ratios; Efficient use of capital; Healthy free cash flow generation; Funding of growth ideally through internal accruals; low to no debt
  • Governance: No significant related party transactions; Minority shareholder friendly (E.g. Dividends, Buybacks); Alignment of interest- management compensation & ESOP’s; Ideally no large promoter pledges and sales in the past; Professionally managed- genuine board of directors, reputed auditors

Valuation

  • Value in Growth: Expensive in the short run but cheap in the long run; Accelerating earnings growth combined with leadership ensures premium multiple justification
  • Margin of Safety: Assessment of longevity of growth and leadership; Estimate downside risk of going wrong due to overestimating growth
  • Traditional Valuation Metrics: Reliance on traditional valuation metrics can be deceiving; Trading Multiples (P/CF, P/E, EV/EBITDA) relative to historical averages- significant premium required serious justification; “low P/E” Investing can be a value trap

Risk Management: 

  • Portfolio Review: Weekly fundamental stock reviews; Ensure balance in portfolios based on industry& stock concentration, market cap weights, and liquidity; Check for technical/distribution patterns
  • Eliminating Losers: Identify and eliminate investment mistakes actively; Monitor for any sectorial and stock weakness; No averaging down on a loss making position 
  • Taking Profits: Riding winners until see earnings growth deceleration; Selling in euphoric tops; Red flags-crowded trades, consensus bets, excessive media coverage, over-guidance from management

Inv Team

Investment Team

Charandeep Singh | 4-star rated FM

Co-Founder & Fund Manager | 25 yrs Experience | 15 yrs at current firm

Past Experience: Lehman Brothers (Director)

Charandeep co-founded Girik Capital in 2009, after a successful stint in global investment banking & leveraged finance at Lehmann Brothers in New York.

Varun Daga | 3-star rated FM

Co-Founder & Fund Manager | 18 yrs Experience | 15 yrs at current firm

Past Experience: Own Family Office

Varun is a co-founder of Girik Capital along with Charandeep Singh. Prior to Girik, Varun was responsible for managing the equity investments for his own family office from 2006 to 2009.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

Scheme Category Style 1 yr 3 yr 5 yr Since Inc
Girik Multicap Flexi Cap GARP 6 21.4 23.9 21.3

Returns as of 31-May-24.

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