| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.2% | - | -6.0% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| -11.0% | -12.0% | 30.0% | -7.3% | 31.5% | 31.0% |
Gymkhana Partners declined 11% in 2025 but delivered a compound annual return of 12.5% since mid-2013, significantly outperforming Indian indices. The firm maintains confidence in their distinctive strategy of investing in undervalued smaller-cap Indian businesses. India's economy continues robust growth at 8.2% GDP despite U.S. tariffs, driven by domestic consumption and transformative reforms including labor law overhaul and securities market modernization. Technology giants have committed over $67 billion in near-term investments. Gymkhana has increased allocations to defense/aerospace and industrial companies while reducing exposure to automotive and chemicals. The portfolio trades at just over 15 times forward earnings, representing significant discounts to indices despite faster earnings growth. Recent additions include Astra Microwave and Unimech Aerospace, while positions in Jamna Auto and Sansera Engineering were trimmed at gains. The firm believes current market weakness presents excellent opportunities to allocate capital to high-quality businesses in the world's fastest-growing major economy.
Gymkhana Partners focuses on investing in undervalued, well-managed smaller-cap Indian businesses that are positioned to benefit from India's structural growth drivers including favorable demographics, urbanization, domestic consumption, and pro-business reforms.
The firm remains confident in their ability to deliver superior long-term investment results by applying Gymkhana's distinctive strategy and believes the latest dip in market prices will ultimately prove to have been an excellent opportunity for investors to allocate capital to high-quality businesses in the world's fastest-growing major economy.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 20 2026 | 2025 Q4 | AMZN, ASTRA.NS, BHARATBIJ.NS, FINPIPE.NS, GOOGL, INTC, JAMNAUTO.NS, MSFT, RELIANCE.NS, SANSERA.NS, TATAELXSI.NS, UNIMECH.NS | defense, growth, India, Manufacturing, Reform, small caps, value | - | Gymkhana has increased positions in defense/aerospace companies and assembled a sub-database applying standardized valuation frameworks to more than 50 undervalued Indian holding companies. The firm has researched India's defense and aerospace industries extensively, understanding the broader ecosystem from state-controlled behemoths to private-sector suppliers specializing in aerostructures and precision-engineered components. This research forms the basis for selecting ten Indian defense/aerospace companies currently held in the portfolio. India's economy continues to power ahead with 8.2% GDP growth despite U.S. tariffs, driven by booming domestic consumption, prudent macroeconomic governance, and favorable demographics. The Modi government has enacted transformative pro-free market policies including GST streamlining, labor law overhaul, and securities market modernization. Technology titans like Amazon, Google, and Microsoft have unveiled over $67 billion in planned investments, while Intel announced strategic alliance with Tata Electronics for semiconductor fabrication. Gymkhana is now more allocated to smaller-capitalization companies and less to larger-cap stocks compared to a year ago. The firm believes their portfolio of well-managed, earnings-compounding smaller-cap businesses purchased at reasonable multiples is more likely to generate superior long-term results than portfolios concentrated in large-capitalization stocks. Most India-dedicated ETFs and mutual funds are over-concentrated in IT services and petroleum behemoths that are less tied to India's booming domestic market. Gymkhana's businesses sell at very significant discounts to their intrinsic values, with a position size-weighted P/E ratio of just over 15 times forward earnings. This represents a significant discount to every U.S. and Indian equity index mentioned, even though the portfolio companies' earnings are growing at faster rates. The firm focuses on well-managed, earnings-compounding businesses purchased at reasonable multiples of earnings. |
| Sep 30 2025 | 2025 Q3 | - | Capital Market Deepening, Currency Depreciation, Defense Manufacturing, Domestic Demand, India Equities | - | The letter notes modest year-to-date declines driven largely by rupee weakness, while reaffirming confidence in Indias domestic-demand-led growth model. Structural tailwinds include deepening capital markets, rising household equity participation, tax reform, and accommodative monetary policy. Portfolio activity has increased exposure to industrial and defense-related companies positioned to benefit from indigenization and global rebalancing away from China. |
| Jul 1 2025 | 2025 Q2 | - | Defense Indigenization, earnings growth, India Equities, small caps, Supply Chain Shift | - | The update discusses a recovery from early-2025 market weakness as Gymkhana added to high-conviction positions during volatility. Research has focused on defense indigenization and global supply-chain diversification into India, benefiting aerospace, pharmaceuticals, and advanced manufacturing. Valuations remain attractive relative to global markets, supporting continued allocation to smaller-cap, earnings-compounding businesses. |
| Mar 21 2025 | 2024 Q4 | BHARAT IN, BJHI IN, CHOLAHLD IN, DAGRI IN, FINPIPE IN, GALAPREC IN, JUBLINGR IN, KPRMILL IN, MHSC IN, SANSERA IN | Holding Companies, India Equities, Industrial Growth, Long-Term Compounding, Market Correction | - | The annual report highlights continued outperformance amid rising Indian equity participation by domestic investors and sustained GDP growth. A market correction is framed as an opportunity to add high-quality businesses at attractive valuations, particularly in industrials, specialty manufacturing, and holding companies trading at large discounts. The managers emphasize disciplined capital recycling, elevated portfolio concentration, and confidence in Indias multi-decade growth runway. |
| Apr 16 2024 | 2023 Q4 | ASTEC IN, JAMNAAUTO IN, KHL IN, RADICO IN, SHRIRAMFIN IN, SPLPETRO IN, TATACHEM IN | Domestic Consumption, Earnings Compounding, Financialization, India Growth, Small Mid Caps | - | The letter describes a strong rebound year as Indian equities delivered robust earnings growth, allowing Gymkhana to outperform global benchmarks net of taxes and fees. The managers stress Indias unique combination of domestic demand growth, reform-driven productivity gains, and a vast opportunity set beyond large-cap index constituents. Portfolio positioning favors smaller, inefficiently priced companies benefiting from infrastructure buildout, manufacturing expansion, and financialization of household savings. |
| Apr 27 2023 | 2022 Q4 | EBECK IN, GRAUWEIL IN, IMPL IN, RHIM IN, SPLPETRO IN, SUPRAJIT IN, UNIENTER IN | Currency Risk, India Equities, Infrastructure Investment, Supply Chain Diversification, Valuation Discount | - | The report reviews a challenging year in USD terms driven primarily by Indian rupee depreciation, despite positive local-currency portfolio performance. Gymkhana highlights accelerating infrastructure investment, supply-chain diversification away from China, and pro-growth policy reforms as reinforcing Indias long-term earnings trajectory. The portfolio remains concentrated in undervalued, underfollowed Indian businesses with strong balance sheets and significant upside to intrinsic value. |
| Dec 31 2021 | 2021 Q4 | BJHI IN, GODREJIND IN, GRAUWEIL IN, REPCO IN | Currency Volatility, emerging markets, India Equities, Long-Term Growth, Small Cap Value | - | The letter outlines Gymkhanas long-term thesis on India as a structurally advantaged, under-owned equity market with superior growth potential driven by demographics, reform momentum, and capital market deepening. The managers emphasize disciplined bottom-up stock selection focused on overlooked small- and mid-cap businesses trading at discounts to intrinsic value. Volatility and currency weakness are framed as recurring features that create opportunity for patient investors willing to do intensive on-the-ground research. |
| Dec 31 2020 | 2020 Q4 | - | emerging markets, India Equities, Long-Term Growth, Small Mid Caps, Structural Reforms | - | The annual letter reviews a volatile but highly profitable year, as Gymkhana delivered strong U.S. dollar returns by capitalizing on extreme market dislocations during the Covid-driven selloff and subsequent recovery. Indias long-term growth outlook is reinforced by structural reforms, supply-chain diversification away from China, rising domestic consumption, and favorable demographics, despite short-term political friction around agricultural liberalization. The portfolio remains focused on high-quality Indian mid- and small-cap companies trading at attractive valuations, with volatility viewed as a recurring feature that creates opportunity for disciplined, patient investors. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DefenseThe team initiated a position in Curtiss-Wright, believing the company is entering a period where multiple near-term growth drivers are converging, including rising defense budgets, commercial aerospace production ramps, nuclear power plant life extensions and new builds, and submarine production. |
Defense Budgets Aerospace Nuclear Submarines |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets | |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets |
| 2025 Q2 |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets |
| 2024 Q4 |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets |
| 2023 Q4 |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets |
| 2022 Q4 |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets |
| 2021 Q4 |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets |
| 2020 Q4 |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| ASTRA.NS | impressive recent additions to our portfolio such as Astra Microwave Products |
| BHARATBIJ.NS | Bharat Bijlee, a leading manufacturer of electric transformers and motors that sells at 15 times forward earnings – an attractive valuation before even considering the company's unutilized landholdings in Mumbai's eastern suburbs, which we believe could be worth as much as half of Bharat Bijlee's entire market capitalization |
| FINPIPE.NS | Finolex Industries, a backward-integrated manufacturer of branded PVC pipes and fittings in which we first invested back in 2016; after previously (profitably) divesting shares at nearly 20 times forward earnings, we re-initiated our position April 2025 at approximately 13 times forward earnings |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| INTC | even Intel (a frequent punchline for missing cycles) found itself unexpectedly capacity-constrained in data-centre CPUs. |
| JAMNAUTO.NS | Jamna Auto, a manufacturer of automotive suspension springs that sells at approximately 24 times forward earnings (position pared at a ~72% gain) |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| RELIANCE.NS | India-based conglomerate: chemicals, refining, #1 mobile telco and #1 retailer in India |
| SANSERA.NS | Sansera Engineering, a high-quality supplier of automotive, aerospace, and semiconductor components trading at approximately 31 times forward earnings (position pared at a ~12% gain) |
| UNIMECH.NS | impressive recent additions to our portfolio such as Astra Microwave Products and Unimech Aerospace and Manufacturing |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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