| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 16.21% | -10.36% | -10.36% |
Itus Capital's portfolio declined 10.36% in Q4 FY26 versus benchmark decline of 14.44%, delivering 408 basis points of outperformance during one of the sharpest quarters for Indian equities in recent years. The correction was driven by Iran-Israel conflict escalation pushing crude oil above US$100/bbl, creating supply shock concerns. Despite FPI outflows of ₹1.31 lakh crore, domestic institutional investors absorbed selling with ₹2.51 lakh crore net buying. Portfolio positioning across five core themes - mining & minerals (15.0% overweight), healthcare (11.6% overweight), chemicals (8.3% overweight), infrastructure capex, and consumer discretionary - proved resilient. Healthcare was best-performing major segment declining only 3.8% versus 14.5% index decline. The correction reset valuations with Nifty 50 trading at 18.5x forward earnings below historical averages. Private sector capex inflecting from ₹7.7 trillion to estimated ₹11.6 trillion by FY27 supports structural investment cycle. Manager maintains focus on earnings visibility and balance sheet strength while emphasizing selectivity over direction.
Portfolio positioned across five core themes including mining & minerals, healthcare, chemicals, consumer discretionary, and infrastructure spending, with focus on businesses offering earnings visibility and balance sheet strength in a market environment where selectivity over direction drives outperformance.
The correction has improved risk-reward across several segments. Focus remains on businesses where earnings visibility and balance sheet strength provide a margin of safety. The manager emphasizes selectivity over direction, consistent with the approach that has driven portfolio's relative outperformance.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 9 2026 | 2026 Q1 | - | Capex, Chemicals, energy, Geopolitical, healthcare, India, infrastructure, Mining | - | Itus Capital outperformed by 408 basis points during sharp Q4 correction driven by Iran-Israel conflict and crude oil spike above $100. Portfolio's thematic positioning across mining, healthcare, chemicals, and infrastructure capex themes proved resilient. Correction reset valuations to attractive levels with private sector capex cycle inflecting meaningfully. Manager emphasizes selectivity over direction. |
| Jan 7 2026 | 2025 Q4 | CUB.NS, DRREDDY.NS, EICHERMOT.NS, ERIS.NS, HDFCAMC.NS, HDFCBANK.NS, HDFCLIFE.NS, HINDCOPPER.NS, HINDZINC.NS, ICICIBANK.NS, ICICIGI.NS, NAVINFLUOR.NS, PAYTM.NS, PBFINTECH.NS, PIRAMALP.NS, SBIN.NS, SRF.NS, SWIGGY.NS, TITAN.NS, VEDL.NS | Bottom Up, earnings, growth, healthcare, India, Mining, Multi Cap, selectivity | - | ITUS Capital's bottom-up multi-cap strategy delivered 6.64% in 2025 through selective stock picking despite challenging market conditions. Portfolio positioned around consumer distribution, mining, financials, healthcare, and industrialization themes. Manager expects 2026 growth recovery but anticipates continued market selectivity with returns dependent on earnings delivery rather than broad-based rallies. |
| Oct 9 2025 | 2025 Q3 | CUB.NS, DRREDDY.NS, ERIS.NS, HDFCAMC.NS, HDFCBANK.NS, HDFCLIFE.NS, HINDCOPPER.NS, HINDZINC.NS, ICICIBANK.NS, ICICIGI.NS, IGI.NS, PAYTM.NS, PBFINTECH.NS, PIRAMALP.NS, SBIN.NS, SRF.NS, SWIGGY.NS, TATASTEEL.NS, TITAN.NS, VEDL.NS | Banking, Chemicals, consumption, earnings, growth, healthcare, India, Platforms | - | Itus Capital sees India halfway through an earnings slowdown with recovery ahead. Strong domestic flows and policy support offset FII weakness and tariff concerns. The fund repositioned toward metals and away from banking, focusing on platform businesses, chemicals import substitution, and consumption themes. Superior portfolio earnings growth positions for the expected recovery in early 2026. |
| Jun 30 2025 | 2025 Q2 | AUROBINDO.NS, BAJAJ-AUTO.NS, CUB.NS, DRREDDY.NS, EICHERMOT.NS, GILLETTE.NS, HDFCAMC.NS, HDFCBANK.NS, HINDUSTANCOPPER.NS, HINDZINC.NS, ICICIBANK.NS, IGI.NS, INTERGLOBE.NS, ITC.NS, MARICO.NS, PBFINTECH.NS, PIRAMALP.NS, TITAN.NS, TVSMOTOR.NS, VEDL.NS | Banking, earnings, India, infrastructure, Pharmaceuticals, tariffs, Valuations | - | Itus Capital navigates volatile H1 2025 with portfolio lagging benchmark due to pharma drawdowns but showing superior fundamentals. Manager expects government capex recovery and private investment cycle emergence while maintaining defensive positioning. Strong domestic flows and rural recovery support outlook despite global tariff uncertainties and earnings slowdown. |
| Mar 31 2025 | 2025 Q1 | ABB.NS, AUROPHARMA.NS, BAJAJ-AUTO.NS, DRREDDY.NS, EICHERMOT.NS, GILLETTE.NS, HAVELLS.NS, HDFCAMC.NS, HDFCBANK.NS, HINDCOPPER.NS, ICICIBANK.NS, ICICIGI.NS, ITC.NS, MARICO.NS, PBFINTECH.NS, PIRAMALP.NS, TITAN.NS, TVSMOTOR.NS, ULTRACEMCO.NS, VEDL.NS | banks, consumer, Government Spending, India, large cap, Pharmaceuticals, tariffs, valuation | - | Itus Capital maintains defensive large cap positioning amid macro headwinds from declining market-linked tax revenues threatening government capex spending. Portfolio concentrated in market-leading banks, pharma, and consumer companies while avoiding government-dependent sectors. Manager expects narrower earnings growth ahead and positions for domestic-oriented, low capex intensity businesses in uncertain global trade environment. |
| Dec 31 2024 | 2024 Q4 | AMBUJACEM.NS, AUROPHARMA.NS, BAJAJ-AUTO.NS, DRREDDY.NS, EICHERMOT.NS, GAIL.NS, HAVELLS.NS, HDFCAMC.NS, HDFCBANK.NS, ICICIBANK.NS, IEX.NS, ITC.NS, KEI.NS, LT.NS, MARICO.NS, PBFINTECH.NS, PIRAMALP.NS, POWERGRID.NS, RELIANCE.NS, TVSMOTOR.NS | Capex, Copper, Domestic Flows, healthcare, India, infrastructure, technology, Two Wheelers |
KEIIND.NS ICICIGI.NS |
ITUS Capital outperformed in 2024 driven by healthcare and infrastructure positioning during India's structural domestic equity participation cycle. The manager expects increased volatility in 2025 as earnings narrow, creating opportunities for concentrated positioning in companies with pricing power. Healthcare, rural recovery themes, and copper demand-supply dynamics remain key focus areas for the portfolio. |
| Sep 30 2024 | 2024 Q3 | ABB.NS, AUROPHARMA.NS, BAJAJ-AUTO.NS, BHARATFORG.NS, BLUESTARCO.NS, DRREDDY.NS, EICHERMOT.NS, GAIL.NS, HAVELLS.NS, ICICIGI.NS, IEX.NS, IPCALAB.NS, ITC.NS, MARICO.NS, MARUTI.NS, NTPC.NS, PETRONET.NS, POWERGRID.NS, RELIANCE.NS, SBILIFE.NS | Autos, earnings, India, large cap, liquidity, Pharmaceuticals, Power, Rural | - | ITUS Capital outperformed with 23.95% returns through Q3 2024, maintaining large-cap focus amid elevated small-cap valuations. Portfolio emphasizes earnings growth, liquidity benefits, and RoE expansion across pharmaceuticals, power infrastructure, and rural consumption recovery themes. Strong domestic fundamentals and disciplined capital allocation drive continued outperformance with 21.8% annualized returns since inception. |
| Jun 30 2024 | 2024 Q2 | - | capital goods, India, inflation, large cap, Manufacturing, ROE, Telecom, Valuations | - | Itus Capital positions for India's inflationary boom cycle, overweighting manufacturing sectors benefiting from sustained capex. Strong H1 performance of 13.64% reflects thesis validation as telecom ARPU rises after decade-long decline. Large-cap focused portfolio with diversified sizing captures broad-based growth while managing elevated valuations through earnings-contextualized approach. |
| Mar 31 2024 | 2024 Q1 | - | cycle, earnings, growth, India, large cap, Margins | - | Itus Capital outperformed with 20.1% annualized returns by focusing on earnings growth over valuation in India's inflationary boom cycle. Portfolio emphasizes large-cap GDP-facing sectors with sustainable margin expansion. Manager recently called for capital to add two-wheeler and pharma exposure while maintaining liquidity focus and shifting emphasis from return maximization to downside protection. |
| Dec 31 2023 | 2023 Q4 | INDUSINDBK.NS, NTPC.NS | Banking, growth, India, positioning, Power, value |
INDUSINDBK.NS NTPC.NS |
Itus Capital outperformed in 2023 with disciplined investing in Indian businesses with durable franchises. Key themes include power sector supply-demand imbalance and banking sector MSME growth. The manager maintains selective positioning with cash reserves, focusing on consistent long-term performance rather than short-term gains while remaining optimistic about portfolio fundamentals. |
| Sep 30 2023 | 2023 Q3 | - | Auto, Financialization, growth, India, large cap, Manufacturing, Nifty, value | - | Itus outperformed Nifty by 700bps through Q3 2023, focusing on domestic manufacturing over consumption themes. Manager sees India at financialization inflection point similar to 1989 US, with potential for significant wealth creation. Portfolio shifted toward large caps for better liquidity while maintaining growth-at-reasonable-price philosophy. Cash increased as fund prioritizes risk management over return maximization. |
| Jun 30 2023 | 2023 Q2 | - | Auto, growth, India, Manufacturing, small caps, value | - | Itus Capital outperformed Nifty by 348bps in H1 2023 while maintaining disciplined growth-at-reasonable-price strategy. Despite all-time market highs, valuations remain attractive with indices trading at significant discounts to 2021 peaks. Portfolio companies showing strong 20.8% topline growth with favorable FY24 outlook as capex investments drive operating leverage in strong demand environment. |
| Mar 31 2023 | 2023 Q1 | HDFCBANK.NS, ICICIBANK.NS, INDUSINDBK.NS | Auto Parts, Export, financials, India, inflation, Manufacturing, value | - | Itus Capital focuses on promoter-run B2B manufacturing and auto ancillary companies positioned for structural themes of capex-driven growth and supply chain resilience. The fund deployed cash during Q1 volatility, maintaining concentrated exposure across manufacturing, auto parts, and select financials while expecting 2023 to offer attractive deployment opportunities. |
| Dec 31 2022 | 2022 Q4 | - | - | - | |
| Sep 30 2022 | 2022 Q3 | - | - | - | |
| Jun 30 2022 | 2022 Q2 | - | - | - | |
| Mar 31 2022 | 2022 Q1 | - | - | - | |
| Dec 31 2021 | 2021 Q4 | NYKAA.NS | Asset Managers, Capital markets, E-Commerce, growth, India, Manufacturing, Pharmaceuticals, technology | NYKAA.NS | ITUS Capital delivered 25% annualized returns over 5 years focusing on Indian growth companies with strong unit economics and market share gains. Portfolio cash flows grew 42% IRR despite modest revenue growth. Manager sees India entering golden decade with deleveraged corporates, rising capex, infrastructure investment, and startup wealth creation driving long-term outperformance. |
| Oct 9 2021 | 2021 Q3 | HDFCAMC.NS, NAZARA.NS | Capital markets, Fintech, gaming, growth, India, value |
NAZARA.NS HDFCAMC.NS |
ITUS Capital up 29.5% YTD, outperforming Nifty by 90% cumulatively since inception. Added Nazara Technologies gaming platform, trimmed HDFC AMC. Portfolio companies expanding margins despite supply chain disruptions. Manager turns cautious for first time in 1.5 years, citing investor laxity and plans higher cash balances for selective deployment. |
| Jul 10 2021 | 2021 Q2 | ALEMBICLTD.NS, ALKEM.NS, BALKRISIND.NS, CAMS.NS, FINEORG.NS, GALAXYSURF.NS, HDFCAMC.NS, HDFCBANK.NS, HDFCLIFE.NS, ICICIBANK.NS, ICICIGI.NS, IEX.NS, INDIAMART.NS, INFY.NS, LTTS.NS, LUPIN.NS, MCX.NS, ORIENTELEC.NS, ROUTE.NS, SYNGENE.NS, TATACONSUM.NS | financials, growth, India, portfolio, Quality, risk management | - | ITUS Capital posted strong H1 2021 returns of 16.4% while rotating from banks to non-lending financials. Portfolio companies achieved record 157% FCF growth with strong quality metrics. Manager remains optimistic on Indian equities but cautious on valuations and rising retail leverage, emphasizing disciplined position sizing and quality focus over momentum chasing. |
| Mar 31 2021 | 2021 Q1 | AXISBANK.NS, CAMS.NS, GALAXYSURF.NS, HDFCBANK.NS, ICICIBANK.NS | Banking, Financial Services, growth, India, Mutual Funds, technology | CAMS.NS | ITUS Capital reduced banking cyclicality by exiting Axis Bank while adding CAMS, a dominant Indian mutual fund intermediary with 70% market share. The 21-position portfolio generates 22% earnings growth with 28% ROCE. Manager avoids commodities despite super-cycle narratives and takes a constructive view on rising rates based on historical precedent. |
| Dec 31 2020 | 2020 Q4 | HDFCBANK.NS, IEX.NS, MCX.NS, WHIRLPOOL.NS | Asset Managers, banks, Exchanges, growth, India, Pharmaceuticals, technology |
HDFCBANK.NS WHIRLPOOL.NS |
ITUS Capital returned 40.32% in 2020 through concentrated growth investing in Indian market leaders across banking, exchanges, technology, and pharmaceuticals. Manager believes India enters multi-year bull market supported by low rates driving equity flows. Portfolio benefits from consolidation themes and digital transformation while maintaining discipline around quality management and monopolistic business models. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
MiningMining & Minerals was the top performing sector contributing 3.36% to returns, driven primarily by strong stock selection. The fund maintains an overweight position but is cautious on incremental additions at current valuations which are above long-term averages. |
Copper Zinc Metals |
HealthcareHealthcare detracted from performance due to tariff-related concerns that led to a sharp correction early in the year. Despite challenges, many businesses continue to invest meaningfully in core franchises and R&D capabilities, with several recovering over time. |
Pharmaceuticals Biotechnology | |
FinancialsThe fund's exposure spans banks, NBFCs, and select non-lending financial institutions. They remain opportunistic in adding risk selectively, guided by valuation discipline and balance sheet strength. |
Banks Insurance | |
InfrastructureIndustrialisation and GDP-facing sectors represent a potential multi-year opportunity. The fund focuses on businesses that have maintained balance sheet discipline through the recent slowdown, positioning them well for a recovery phase. |
Capital Goods Construction | |
| 2025 Q3 |
PlatformsPlatform businesses are entering a favorable environment with lower interest rates supporting their terminal value. These businesses enjoy network effects and low-cost structures, creating operating leverage. Some well-run Indian platform businesses are showing reduced cash burn and moving toward profitability after spending on customer acquisition over the last decade. |
Network Effects Operating Leverage Scalability Terminal Value Cash Burn |
ChemicalsIndia's chemical sector contributes 7% of GDP and is expected to grow from 3-3.5% of global consumption to 10-12% by 2040. Despite recent headwinds, companies have demonstrated resilience through strong cash flow generation and continued investments. Import substitution and export opportunities amid global supply shifts position the sector for sustained growth. |
Import Substitution Export Opportunities Domestic Production Cash Flow Generation Capacity Expansion | |
ConsumptionIndia's growth is driven by the consumption sector, which contributes significantly to revenues and net profit of public equities. The manager believes consumption strength provides a cushion and expects policy support to stimulate micro-level growth through consumption. Rural recovery is expected to drive volume growth. |
Rural Recovery Volume Growth Domestic Demand Policy Support Consumer Spending | |
| 2025 Q2 |
TariffsUS tariff policies are creating global trade volatility and uncertainty. The manager discusses how tariffs protect domestic industries at the expense of consumers and global welfare, while potentially increasing inflation and devaluing currency. This uncertain environment requires global allocators to rethink their marginal dollar allocation. |
Trade Policy Inflation Global Volatility Currency |
Infrastructure SpendingGovernment capex spending has had a 23% CAGR over the last 3 years but has slowed due to elections and monsoon delays. The manager expects this to spill over into slower earnings but believes capex spending will return towards the end of the financial year, potentially driven by private capex rather than public capex. |
Government Capex GDP Private Public | |
EarningsCorporate earnings growth has narrowed with Nifty 500 topline growth dropping to 12.6% from 13.4% two quarters prior. Only 36.6% of Nifty 500 companies beat index returns, reflecting narrowness in outperformance. Analyst estimates for FY26 have seen a 4.8% cut between February and June 2025. |
Growth Estimates Outperformance Narrowness Cuts | |
PharmaceuticalsThe pharma bucket contributed significantly to the portfolio's peak-to-trough drawdown of 13.8% in the first two months of 2025. However, the manager sees strong growth outlook benefiting from low-cost manufacturing and lower price erosion in US pharma markets. |
Manufacturing US Price Growth Drawdown | |
| 2025 Q1 |
BanksPortfolio is overweight banks with focus on market leaders like ICICI Bank and HDFC Bank. Manager expects bottoms-up outlook on lending growth and views banks as offering better risk-reward at current valuations. |
Banking Lending Credit Financial Services Market Leadership |
PharmaceuticalsStrong overweight position in pharma sector benefiting from low-cost manufacturing advantage and lower price erosion in US markets. Holdings include Dr. Reddy's, Aurobindo Pharma, and Piramal Pharma. |
Pharma Manufacturing US Markets Generic Drugs Healthcare | |
ConsumerOverweight consumer staples expecting rural recovery to drive volume growth. Focus on companies building direct go-to-market models. Holdings include ITC, Marico, and Gillette India. |
FMCG Rural Recovery Volume Growth Consumer Staples Distribution | |
Trade PolicyDetailed analysis of US tariffs impact on global trade dynamics. Manager believes India should avoid trade-related disruptions but acknowledges increased global risk premium and uncertainty from changing world order. |
Tariffs Trade War Global Trade Risk Premium Geopolitics | |
| 2024 Q4 |
PharmaceuticalsHealthcare continues to be the largest exposure across portfolios with strong growth outlook benefiting from low-cost manufacturing and lower price erosion in US pharma. The manager expects CY25 to be a strong growth sector for pharma which is reflected across portfolio positioning. |
Pharma Healthcare Manufacturing US Markets Growth |
Infrastructure SpendingGovernment CAPEX increased from 5.92 lakh Cr in FY22 to 9.48 lakh Cr in FY24, while private CAPEX of top 1000 companies reached 6.99 lakh Cr in FY24 versus 4.58 lakh Cr in FY22. This drives demand for cables, wires and construction-related sectors. |
CAPEX Government Private Construction Cables | |
CopperIndia continues to be a net importer of copper and global demand for the metal continues to increase at 2x the pace at which new mines have come up. Supply globally continues to be tepid, which should drive higher prices towards the end of 2025. |
Copper Mining Supply Demand Metals | |
Capital MarketsGrowing financialization in the country drives positioning in asset management and platform plays. The manager notes they were slow to ramp up exposures when models showed non-linear growth in capital market plays. |
Financialization Asset Management Platform Growth Domestic | |
| 2024 Q3 |
EarningsStrong earnings growth driven by domestic fundamentals with portfolio companies showing 30.6% EPS growth year-over-year. Structural improvement in RoEs for top 500 companies in India over the last 4 years has resulted in strong market performance. Focus on companies where earnings growth is accompanied by RoE expansion. |
RoE Growth Fundamentals Margins Capital allocation |
LiquidityContinued environment of easy liquidity with Fed behind the curve on rate cuts and China cutting rates. Domestic participation of equity funds and retail money remains robust, with domestic flows continuing to support the market incrementally and absorbing new supply significantly. |
Fed Rates Domestic flows Retail Monetary policy | |
PowerIncreased exposure to power sector over last 6 quarters driven by significant capex by top 6 players in power generation over the last 4 years. Transmission capacity has increased 4x with sub-station capacity expansion, creating opportunities in growing power consumption trends. |
Capex Transmission Generation Infrastructure Consumption | |
RuralFirst significant allocation increase to consumer staples in over 6 years based on expected rural consumption recovery. Farm realization higher this season with improved yield, higher prices and lower input costs. States announced Rs 2.1 trillion worth of welfare schemes expected to lead to higher wage growth. |
Consumption Agriculture Welfare Income Recovery | |
| 2024 Q2 |
InflationIndia is experiencing inflationary factors that benefit GDP growth, with telecom sector ARPU increases after 10 years being a key indicator. The manager positions the fund for an inflationary boom cycle, contrasting with the previous decade's deflationary environment that favored technology. |
Telecom ARPU CPI Rates |
Capital GoodsManufacturing-facing sectors including capital goods have significantly expanded ROE over the last 3 years, driven by private, state and central government capital expenditure. The fund maintains overweight positioning in this sector based on continued investment visibility. |
Manufacturing ROE Capex Government | |
Telecom InfrastructureTelecom sector showing first signs of inflationary pickup with ARPU increases after 10 years since Jio launch. Telecom tariff hikes of 20% can lead to 40 basis points rise in CPI inflation, making it a key beneficiary of the inflationary cycle. |
ARPU Jio Tariff Infrastructure | |
| 2024 Q1 |
EarningsManager emphasizes earnings growth as the primary driver of returns in current cycle, with portfolio companies showing 18.4% EPS growth year-over-year. Focus on sustainability of earnings growth rather than valuation as key investment criterion. |
Growth Quality India |
IndiaStrong positioning in Indian market with focus on GDP-facing sectors benefiting from robust economic growth. Manager sees India's structural growth potential translating to 12% nominal returns over 5-year cycles. |
Growth GDP Structural | |
| 2023 Q4 |
PowerDemand for electricity is outstripping supply capacity additions, with thermal plant load factors increasing from 57% to 68%. The government's renewable energy targets have come at the expense of minimal thermal capacity expansion since 2017, creating structural supply shortages. |
Power Generation Thermal Renewable Capacity Demand |
BankingFocus on retail banking and microfinance as growth levers, particularly in MSME lending which is growing at over 30% in India. IndusInd Bank positioned to benefit from increasing domestic demand and small business growth. |
Retail Banking MSME Microfinance Loan Growth Cards | |
| 2023 Q3 |
IndiaManager sees India at an inflection point with financialization accelerating and domestic investors becoming more sophisticated. Compares current India market cap to US in 1989, suggesting potential for 3.5x wealth creation over next decade with government-led infrastructure growth. |
Financialization Infrastructure Domestic Growth Inflection |
Capital MarketsDetailed analysis of financialization trends showing demat accounts growing 220% and mutual fund investments up 71% over recent period. However, notes that taxpayer base growth of 12% over 4 years constrains addressable market for financial intermediaries. |
Demat Mutual Funds Taxpayers Penetration Growth | |
| 2023 Q2 |
GrowthThe fund targets businesses that can generate at least 15% topline growth over the next 3 years, compounding to 52% absolute growth. Portfolio companies showed 20.8% topline growth in FY23, with strong fundamentals expected to continue in FY24 as companies benefit from operating leverage in a strong demand environment. |
Growth Earnings Small Caps |
ValueThe fund maintains valuation discipline by not paying more than 2x the growth rate from a cash flow multiple. For a business growing at 16%, they would not pay more than 32x on a cash flow basis. This approach helps manage downside risk while capturing growth opportunities. |
Value Quality | |
| 2023 Q1 |
ManufacturingPortfolio focused on B2B manufacturing businesses with both domestic and export orientation, including agri-chemicals, auto ancillaries, pharma CDMO, and refractories. Manager expects capex-driven growth globally and manufacturing-led growth for economies to sustain supply chains over the next 3-5 years. |
B2B Export Capex Supply Chain Industrial |
Auto PartsSignificant exposure to auto ancillary companies seeing strong order book growth through export and domestic markets. Holdings include CV power trains, transmission gears, braking systems, control cables, and telematics. Companies are promoter-run with 30+ year track records and deep client relationships. |
Export Order Book Transmission Braking Telematics | |
InflationManager believes inflation will be structural rather than temporal due to central bank debt levels and inflationary policies aimed at stimulating growth. Expects higher commodity prices and interest rates as structural themes over the next 3-5 years. |
Structural Central Bank Commodity Interest Rates Debt | |
| 2021 Q4 |
GrowthFund focuses on growth-oriented businesses with positive unit economics, market share gains, and RoCE greater than 1.5x cost of capital. Portfolio companies showed 42% IRR cash flow growth over 2 years despite revenue growing at only 10% IRR. |
Growth Unit Economics Cash Flow Market Share RoCE |
E-commerceSignificant investment in Nykaa, an Indian e-commerce platform for beauty and fashion. Manager believes the business can compound at 20% CAGR over 5-7 years despite not being cheap, citing category growth and brand positioning. |
E-commerce Beauty Fashion Platform Omnichannel | |
Capital MarketsExposure to financial intermediaries and exchanges benefiting from India's financialization trend. Owns businesses in B2B services for mutual fund industry and power trading platforms, though acknowledges pricing power risks at scale. |
Exchanges Financialization B2B Services Trading | |
Asset ManagersBelieves COVID provided tailwinds to well-run AMCs with consistent AUM growth and strong RoCE generation. Portfolio companies in this space growing at 38% IRR from cash flow perspective over 2 years. |
Asset Management AUM Growth Distribution RoCE | |
PharmaceuticalsOwns market leaders across CDMO/CRMO, niche API manufacturing, and integrated pharma companies with concentrated R&D focus. Exposure spans drug discovery and manufacturing segments. |
CDMO API Drug Discovery R&D | |
IndiaBelieves next decade belongs to India from risk-reward perspective with five converging factors: low interest rates, deleveraged corporate balance sheets, growing private capex, government infrastructure investment, and maturing startup ecosystem creating wealth. |
India Infrastructure Capex Startups Deleveraging | |
| 2021 Q3 |
GamingFund made new investment in Nazara Technologies, a gaming infrastructure platform in India built through acquisitions. The company operates across three verticals: Kidopia (gamified learning), Nordwin (esports streaming), and Openplay (real money gaming). Management is building an ecosystem around acquisitions with synergies in talent acquisition and management. |
Gaming Esports Real Money Gaming Infrastructure Acquisitions |
FinTechBanks being enabled by Fintech players with credit growth in retail loan books coming from BNPL schemes. BNPL accounts for approximately 2.4% of US ecommerce payments and is in early stages of growth, expected to drive retail credit growth in coming years. Manager notes importance of monitoring NPAs over time. |
BNPL Credit Growth Retail Banking Payments | |
Capital MarketsFinancialization of India becoming more aggressive, evidenced by trends in new brokerage account openings, SIP flows into mutual funds, and increased retail participation in equity markets. This represents a structural shift in how Indian investors engage with capital markets. |
Retail Participation Mutual Funds SIP Brokerage | |
| 2021 Q2 |
QualityManager emphasizes sustainability of returns through investing in growth companies with cash flow growth and quality management. Portfolio companies showed 157% FCF growth year-over-year, the highest since inception. Focus on businesses with strong pricing power, high gross margins (54.23% average) and ROCE (22.62% average). |
Cash Flow ROCE Management Sustainability |
Capital MarketsManager reduced exposure to private sector banks after significant gains and redeployed capital into non-lending financials including an AMC, financial infrastructure company, and exchange. Decision driven by reducing leverage, front-ended gains, and better risk-reward opportunities. |
Banks AMC Exchange Financials | |
Risk AppetiteManager notes retail participation is high with leverage in pockets, creating tail risk if markets turn south. Retail leverage increasing with net retail longs at highest since 2014. While not cause for immediate concern, emphasizes importance of sound portfolio construction in current environment. |
Retail Leverage Tail Risk Portfolio | |
| 2021 Q1 |
BanksManager reduced banking exposure by exiting Axis Bank while maintaining positions in HDFC Bank and ICICI Bank. Emphasizes HDFC Bank's consistent growth and lack of cyclicality compared to peers. Views banking as inherently cyclical due to credit cycles and NPA risks, making buy-and-hold strategies inappropriate. |
Banking Credit NPAs PPOP Cyclical |
Capital MarketsAdded new position in CAMS, a financial intermediary serving the mutual fund industry with 70% market share. Views it as a proxy monopoly with strong operating leverage and sticky revenue model. Sees growth potential from alternate funds, platform aggregation, and KYC services. |
Mutual Funds Financial Services Platform Technology B2B | |
RatesAddresses investor concerns about rising US 10-year yields but takes a historical perspective. Notes that rate hikes typically occur during economic expansions which are generally positive for equity markets, citing 2004-2008 and 2016-2019 periods as examples. |
Interest Rates Fed Policy Yields Inflation | |
CommoditiesExplicitly avoids commodity exposure due to supply-side non-linearity and cyclical nature. Acknowledges potential commodity super-cycle narrative but remains uncomfortable with the volatility. Notes portfolio has minimal input cost exposure to rising commodity prices. |
Commodity Cycle Steel Copper Supply Demand | |
| 2020 Q4 |
BanksPrivate sector banks are beneficiaries of increased consolidation in banking and NBFC sectors following COVID impacts. Manager expects continued market share growth for private banks in an environment of non-obvious sustained credit growth. Portfolio holds no NBFC exposure. |
Private Banks Consolidation Market Share Credit Growth HDFC Bank |
Asset ManagersNon-lending financials including asset management companies and insurance continue to see tailwinds from AUM perspective and generate strong RoCE for shareholders. Manager has increased exposure in this bucket to market leaders in each segment showing topline growth. |
Asset Management Insurance AUM RoCE Market Leaders | |
ExchangesFund owns MCX and added IEX during pandemic. IEX described as interesting monopolistic business with significant growth potential considering exchange volume is only 3% of total power transaction volume. |
MCX IEX Power Exchange Monopolistic Volume Growth | |
TechnologyLockdown represents inflection point for digital businesses globally. Digital transformation has become essential way of running business, benefiting product companies with services built into their business models. Manager owns market leaders showing cash flow growth. |
Digital Technology Platforms Cash Flows Market Leaders | |
PharmaceuticalsPortfolio includes market leaders in pharma for over 1.5 years with exposures spanning CDMO/CRMO, niche API manufacturing, and integrated pharma companies with concentrated focus on R&D and drug discovery. |
CDMO CRMO API R&D Drug Discovery |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | Fund Letters | ITUS Capital | KEIIND.NS | KEI Industries | Capital Goods | Electrical Components & Equipment | Bull | NSE | Cables, Capital Goods, EHV Cables, Export Opportunity, Government Capex, infrastructure, Power Transmission, renewable energy | Login |
| Dec 31, 2024 | Fund Letters | ITUS Capital | ICICIGI.NS | ICICI Lombard General Insurance Company | Financial Services | Insurance | Bull | NSE | distribution network, General Insurance, Marine Cargo, market share gains, Motor Insurance, premium growth, underwriting discipline | Login |
| Dec 31, 2021 | Fund Letters | ITUS Capital | NYKAA.NS | Nykaa | Internet Retail | Internet & Direct Marketing Retail | Bull | National Stock Exchange of India | B2B Platform, Beauty, Content Commerce, e-commerce, founder-led, India, market leader, Omnichannel, personal care, premiumization | Login |
| Oct 9, 2021 | Fund Letters | ITUS Capital | NAZARA.NS | Nazara Technologies | Electronic Gaming & Multimedia | Interactive Media & Services | Bull | National Stock Exchange of India | Acquisitions, Edtech, Equity, Esports, Gaming, India, Infrastructure Platform, Real Money Gaming, Streaming | Login |
| Oct 9, 2021 | Fund Letters | ITUS Capital | HDFCAMC.NS | HDFC Asset Management Company | Asset Management | Asset Management & Custody Banks | Bear | National Stock Exchange of India | asset management, AUM, Equity, financials, India, Market Share Loss, Mutual Funds, SIP, Underperformance | Login |
| Mar 31, 2021 | Fund Letters | ITUS Capital | CAMS.NS | Computer Age Management Services | Information Technology Services | Financial Exchanges & Data | Bull | National Stock Exchange of India | B2B Services, financial services, India, market leader, Mutual Funds, operating leverage, recurring revenue, technology platform, Transfer Agency | Login |
| Dec 31, 2020 | Fund Letters | ITUS Capital | HDFCBANK.NS | HDFC Bank Limited | Banks - Regional | Banks | Bull | National Stock Exchange of India | asset quality, Collections, contrarian, COVID impact, financial services, India, leadership transition, Private Sector Bank, Value | Login |
| Dec 31, 2020 | Fund Letters | ITUS Capital | WHIRLPOOL.NS | Whirlpool of India Limited | Furnishings, Fixtures & Appliances | Household Durables | Bear | National Stock Exchange of India | Consumer Durables, exit strategy, Home Appliances, India, Management Change, Opportunity-Cost, valuation | Login |
| - | Fund Letters | ITUS Capital | INDUSINDBK.NS | IndusInd Bank | Financials | Banks | Bull | NSE | Bank, credit cards, India, loan growth, Management Quality, Microfinance, MSME Lending, retail banking | Login |
| - | Fund Letters | ITUS Capital | NTPC.NS | NTPC Limited | Utilities | Electric Utilities | Bull | NSE | Capacity utilization, coal, Government Policy, India, Power generation, renewable energy, Supply-Demand Imbalance, Thermal Power | Login |
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