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Prabhudas Lilladher PMS

PMS Rating

IME PMS Rating

AMC does not meet our selection criteria at this time

Not a recommended AMC: While Prabhudas Lilladher PMS has the backing of an established broking house and a seasoned fund manager, it has struggled to scale the PMS platform. A lack of a clearly defined investment style, fairly generic portfolio offerings, weak performance and the lack of scale are the main reasons we do not recommend investments in PL PMS.

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 (87cr) | Promoter Category ()

PMS Background

Prabhudas Lilladher PMS is the PMS arm of the PL broking business (a mid-cap focused brokerage house with a rich pedigree having been founded in 1944).

PMS Investment Philosophy

Focuses on selecting stocks as per bottom-up approach with a disciplined investment process that will lead to supernormal outperformance in individual stocks. Also, seek to invest in companies with a sustained competitive advantage and attractive growth prospects, that are yet trading at inexpensive valuations.

CORE BELIEFS

  • Stock Selection- Driven by fundamental, bottom-up research to identify potential outstanding opportunities.
  • Active Management- Actively aligning portfolio with changes in business cycles as it can lead to generating alpha.
  • Long-Term Horizon- a buy and hold approach, with 3-5 years of maturity period for capital appreciation.

INVESTMENT APPROACH

Follow an investment framework based on characteristics of past wealth-generating companies in mid & small-cap space while keeping in mind the following: 
  • Companies with strong Balance Sheet/ Financial Discipline- low or no debt; falling financial leverage, having a conservative capital structure, improvement in ROC and ROE, likelyhood of generating free cash flows, sales growth translating into profit margins
  • Corporate Governance- low related party transactions, low contingent liabilities, having an independent board of directors, auditors credibility and reputation, transparency and timely disclosures
  • Business Potential- revenues being in small relation to a large and/or growing market or large in a fast growing market, revenue streams that are recurring in nature strengthening their competitive positions/consolidating market positions, operating in a niche market/segments
  • Management and shareholding- looking for management team with integrity, capability and having innovative mindset, high promoter ownership, alignment with minority interests, owner/manager dynamic exists, good capital allocator+ strategic operators

 

Investment Process

Stock selection done on the basis of fundamentals, valuations, industry & company growth prospects ad assessing risk-reward. 

Stock selectivity to mitigate stock concentration risk, portfolio consisting of 15-20 individual securities. Asset allocation based on conviction. The max exposure of individual stock is 10%

Sector Selectivity done on the basis to mitigate non-stock-specific risk. Diversify across multiple industries that will support current secular themes of economy. Active management of industry over & under-weights. Sector capped at 30% at the portfolio NAV. 

Sell-call decision made on the basis of facts deviating from assumptions. when the fundamentals are in deterioration like poor capital allocation, exhaustion of growth opportunities. If there are availability of superior investment opportunities. when stocks become expensive as compared to its intrinsic value. 

Portfolio Constructed on high conviction, concentrated portfolio focused efficiently balancing risk and reward

Inv Team

Investment Team

Ajay Bodke | 4-star rated FM

CEO & Chief Portfolio Manager | 27 yrs Experience | 11 yrs at current firm

Past Experience: Head-Investment Strategy (Prabhudas Liladher Pvt Ltd), Sernior VP & Senior Fund Manager (IDFC AMC), Assistant VP and Fund Manager (SBI Mutual Fund), Equity Research Analyst (SBI Mutual Fund)

Ajay Bodke has rich experience of over 2 decades as Senior Portfolio Manager with marquee mutual fund houses such as IDFC MF, Standard Chartered MF & SBI MF.

Siddharth Vora

Fund Manager | 12 yrs Experience | 5 yrs at current firm

Past Experience: Research analyst

Mr. Siddharth Vora is the Head of Quant Investment Strategies & Fund Manager – PMS at Prabhudas Lilladher (plindia.com). In his career spanning over 5 years, Siddharth’s contributions in the field of research and investments have been significant. Multi Asset Dynamic Portfolio (MADP), a first of a kind Quant Based Tactical Asset Allocation PMS that invests only in passive instruments is his brainchild. MADP is poised to become PL’s Flagship PMS Offering. Siddharth has been an integral part of overall strategic management for New Business Verticals of the PL group including Quantitative Asset Management, Digital Investment Advisory, FinTech Business, Wealth Management Business and Digital Transformation. He further contributes to talent strategy for the PL group and is involved in creating a talent pipeline and in key strategic and hiring decisions for the PL Group. Siddharth joined Prabhudas Lilladher in the year 2016 and has been instrumental in setting up and heading the company’s Quantitative Research & Investment Management Vertical. He has also been involved in setting up the investment advisory business across offline and digital channels for the PL Group, by taking a quantitative strategies approach and collaborating with platforms such as smallcase and wealthdesk to offer PL’s advisory to tech savvy retail clients. Siddharth Vora is a Chartered Accountant from the ICAI and a CFA Charter holder. He holds a Masters of Science Degree in Management for Business Excellence with a double diploma in World Politics from University of Warwick, United Kingdom. He is a SEBI registered Research Analyst and Investment Advisor. An avid traveler and sports enthusiast, Siddharth is professionally trained in football, athletics, badminton and chess. His passion for good food led him to successfully co-found ‘Saucery’ (www.saucery.in) in 2014 – a Premium FMCG brand for International Gourmet Dips, Sauces and condiments.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

Returns as of 28-Feb-24.

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Details shared on the public website, are only a short snapshot of the more detailed analysis that resides in our Proprietary Research Management Solution (RMS) – A proprietary cloud-based tool, that ensures that the unbiased research insights of our central research team are shared directly with investors.

Our RMS allows us to operate with a level of transparency, ethics & consistency of insights, that is unparrarelled in the industry. Our RM’s will help showcase the PMS/AIF options that are the most suited for your unique requirements.

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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.