Investment thesis on Yasho Industries

In an earlier blog, read here, we discussed the importance of seeking Asymmetric outcomes. 

What are conditions under which one could find Asymmetric outcomes? One needs:

  • Large and growing market opportunity that creates opportunity for rapid profit growth at acceptable ROEs (18%+)
  • A promoter that will continue to invest for growth but not be imprudent with risk taking.  Is enhancing organization’s capabilities. 
  • Broadly acceptable entry valuations.
  • Patience – you need time to allow compounding to work and progress is seldom linear. 

We believe Yasho Industries fulfils all these conditions at present.

Read More

Investment thesis on IndiaMART InterMESH

A key attribute of our firm’s culture is the focus on writing a detailed investment thesis on every position of interest.  Writing clears the cobwebs in our minds and allows us to get more specific feedback from peers we respect.  It also reduces the chances of errors. 


IndiaMART is a company we have owned since 2020.  We enclose a more detailed thesis that explains why we believe this company can provide Asymmetric outcomes this decade and why the trailing PE ratio, often used as a valuation proxy, provides an erroneous representation of IndiaMARTs true value. 

Read More

Is it different this time?

Like most valuation-conscious investors at present, we too are grappling to deploy capital at acceptable valuations. In many new accounts opened since January 2023, we continue to hold 20%+ uninvested cash. While we are not accepting capital from new partners at present, if we did, we would be able to deploy only ~40% in Week 1, most of it in Large Caps.


Our uninvested cash prompted a partner to ask us recently whether we are missing “something”. Sentiment for India is very positive. There is a wall of FII money waiting to enter India. SIP flows continue to be strong. Hence can’t valuation multiples continue to climb higher? Is it different this time?
It is not different this time, just the behavioural cycle at play in Small caps and select sectors.

Read More

Looking for Asymmetric outcomes

The enclosed blog discusses the power of Asymmetric outcomes, where to look for such returns, what it takes to achieve them, and how we think about what share of the portfolio we allocate to such ideas. 

Read More