InCred Small & Midcap PMS

The InCred Small & Midcap PMS aims to generate long-term capital appreciation by investing primarily in small and mid-sized companies in the Indian equity market.

They seek to leverage the higher growth potential often found in smaller companies, while also capitalizing on the opportunities within mid-cap stocks.

InCred Small & Midcap PMS follows a structured investment process, categorized into: Buy, Size, and Sell

• Buy: They invest in “Great” businesses at a fair price, or “Good” businesses at a discount to their intrinsic value, while avoiding “Bad” businesses.
• Size: They seek optimal diversification, and allocate capital based on conviction in their investment thesis.
• Sell: They reduce positions when the incremental upside-downside ratio becomes unfavorable or when the underlying business deviates from their investment thesis.

They also have a preference for sectors that are under-represented in large-cap indices.

Their “Four P” investment framework emphasizes: Promoter Integrity, Product Moat, Profitability Metrics and Price Consideration.

They also seek companies with a history of high Return on Invested Capital (ROIC), sustainable cash flow, strong competitive advantages, good pricing power, superior management, alignment with minority shareholders, low dependence on external variables.

They target companies at an inflection point and seek companies that exhibit: Capital Allocation Skills, Superior Management, Potential for High Growth, Small in Size, Longevity in Earnings Growth and Reasonable Valuations.

InCred’s investment philosophy is rooted in the belief that small and mid-cap companies offer superior growth opportunities due to their under-researched and under-owned nature.

They believe that these companies often have a high potential for growth at inflection points and that small caps have historically yielded better long-term returns.

They seek to identify companies that are poised for a market cap graduation, potentially benefiting from the mispricing opportunities in these segments.

They actively engage in research and aim to minimize risk through a sound investment framework.

InCred Small & Midcap PMS seeks to aim for businesses that are “Great” at fair value or “Good” at a discount to intrinsic value while avoiding “Bad” businesses.