Stock Advisory

At ARIA, Our Stock advisory services and recommendation are based on the principles of Value Investing under which we actively research on stocks of companies listed on Indian stock exchange in order to identify the ones that possess potential to grow multi-fold and run by visionary entrepreneurs determined to leverage this mega opportunity which exists in India today.

The investment strategy follows a mix of a top-down and a bottom-up approach. The top-down approach is used to identify key macroeconomic and sectoral themes and subsequently help identify stocks that will benefit from the same. A bottom-up approach is applied based on the belief that there are always individual companies that provide attractive investment opportunities in various industry and market conditions. The prominence given to the top-down vs. bottom-up approach would vary from time to time depending on macroeconomic, sectoral and company specific fundamentals. Our advisory service would aim to give a lot of weightage to factors like strong management, scalable businesses and pricing power of the company, sustainable competitive edge and visible brands, while selecting investment ideas. We seek to deploy capital in businesses which can generate high return on capital by creating and sustaining the competitive advantages in their respective industries. We believe we can generate meaningful out-performance for our clients over the medium to long term through active advisory.

Our Skills

Determining entry value
Reviewing the company performance & stock price periodically
Making exit an independent decision

Our advisory model is non-discretionary and allows you to have a final say in your investments.

ARIA Long Term Strategy:

The objective of ARIA long term strategy is to earn long-term sustained growth through investing in extremely high-quality businesses with consistent and visible earnings growth, meaningfully large size of opportunity and sizeable price-value gap. The quality of management remains at the highest level. For inclusion in the portfolio, the investment prospects have to pass the following criteria:

  • Superior ROCE
  • Non-dilutive earnings growth
  • Long-term, consistent and predictable earnings growth such that this growth will lead to atleast matching, if not higher, investment returns
  • High pay-out
  • Tested history of preservation of capital
Benchmark Index: BSE 200

ARIA Growth Portfolio Strategy:

The concept invests into Indian entrepreneurs with adequate skin in the game who have demonstrated high standards of governance, vision, execution, wisdom, capital allocation and capital distribution skills. They run businesses that are amongst the highest long-term earnings growth.

  • Focus is on top-drawer earnings growth without capital dilution
  • High quality of business
  • Meaningfully large margin of safety
  • Size of opportunity remains at a high enough level and growing
Benchmark Index: BSE 500

Our strategy of buying companies that fit our stringent Criteria of Growth at a Reasonable Price.

  • Can grow 25%+ for long periods of time
  • Can generate High Return of Capital Employed at least 15% with increasing bias
  • Smart and Ethical Management Team
  • Competitive Advantage over competitors (Moat)
  • Low on Leverage around 1-1.5xs with declining bias
  • Reasonable Valuations
  • Free Cash Flow Generator

We sell only if one of these things happens

  • Better Investment Opportunity
  • Story no longer Holds True
  • Extremely Overvalued
  • Long Term Breakdown in Stock, Sector or Market.

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