AMC Background

Electrum PMS (Incorporated in 2014) operates as a boutique asset manager and has been built with a clear long-term orientation toward fundamental equity investing, with an emphasis on patience, valuation discipline, and selective capital deployment. The firm is headquartered in Mumbai and has consciously positioned itself away from asset-gathering or benchmark-centric models, instead focusing on creating substantial long-term wealth for a relatively concentrated and aligned investor base.

The intellectual and strategic backbone of the firm is shaped by the involvement of Ashok Jain as Director and Mentor, who brings over four decades of capital markets experience and is the Chairman, Principal Founder, and Promoter of Arihant Capital Markets. His background as a long-standing market participant and business builder provides Electrum with a strong institutional and governance anchor. Day-to-day investment decision-making is led by the founding team, including Arpit Agrawal (Co-founder and Fund Manager) and Arpit Jain (Co-founder), supported by a structured investment and research organisation comprising portfolio managers, equity research analysts, and dedicated operations, compliance, and business teams.

Investment Philosophy

Electrum’s investment philosophy manifests in a patient, bottom-up, and fundamentally driven approach that seeks to compound capital over long periods rather than optimise for short-term performance or benchmark-relative positioning.

The core focus is on investing in exceptional Indian businesses that demonstrate strong foundations, high-quality management, and sustainable, scalable growth potential. Electrum follows a research-first approach, committing capital only after deep, independent analysis and applying a prudent valuation framework. The firm is highly selective, preferring to concentrate capital in its highest-conviction ideas and avoiding short-term trends, market noise, or style drift driven by external benchmarks.

GARP Orientation and Bottom-Up Stock Selection

Electrum follows a GARP (Growth at a Reasonable Price) investment style, combining an emphasis on long-term earnings growth with valuation discipline to limit downside risk. The firm is sector-agnostic and benchmark-agnostic, allowing opportunity selection to be driven purely by business quality, growth visibility, and risk-reward attractiveness. A key analytical preference is placed on businesses with clean balance sheets and strong potential for operating and free cash flow generation, particularly in small and mid-cap segments, with less reliance on near-term reported profitability.

Proprietary ELECT Investment Framework

The firm applies its proprietary ELECT framework to evaluate and filter investment opportunities. This framework integrates multiple dimensions of business quality and mispricing:

• Excellent Management Pedigree – Emphasis on integrity, execution capability, prudent capital allocation, skin in the game, and long-term orientation of promoters and management teams.
• Longevity and Sustainability – Assessment of competitive advantages, entry barriers, scalability, product strength, and the durability of business models.
• Earnings Growth – Focus on industry opportunity size, market share gains, geographic expansion, product innovation, and structural sectoral tailwinds.
• Capital Efficiency – Preference for high returns on capital, low capital intensity, efficient working capital cycles, and strong operating cash flow conversion.
• Turnaround, Value Mispricing, and Contra Opportunities – Selective exposure to businesses undergoing transition, special situations, or sectors temporarily out of favour where price-value dislocations exist.