GoldenBridge.in

GoldenBridge Super Compounders

About the Strategy

Research Analyst will predominantly focus on mid and small capitalization companies which may be undergoing special situations or are in the midst of unfavorable business cycle. The Strategy shall follow Top down approach in Sector Selection and Bottom Up  approach in Stock Selection. The Strategy may look to invest in companies which are fundamentally strong, and which may be  considered to be one of the market leaders in their industries.

Understanding SuperCompounders

Companies Sustainable Competitive Advantage

Businesses with Rising Free Cash Flows

Advantaged Positions Relative to Competitors

Long-Term Growth through Reinvestments

Potential Source

Potential Source of Alpha

We focus on sustainable growth stories, where potential price appreciation is backed by earnings per share growth.

Demand Explosions

We seek companies with possibilities of demand explosion and margin expansion opportunities.

Improved Valuations

This translate to revenue and profit growth that outpaces historical averages, leading to PE re-rating and improved valuations.

Undervalued Businesses

Buying undervalued businesses with special situations, cyclicality, and mispriced by the market, offering a margin of safety.

Aims to identify Potential Undervalued Stocks

Business Moat

Business Moat in comparison to Peers

1

2

Economic Value

Determining Economic Value of the Firm

Price Comparison

Comparison with Current Market Price

3

4

Price Analysis

Analysing reasons for Stock Price lower than its
Intrinsic Value


Key Features of Strategic Approach

Sustainability of Competitive Advantage

Focusing on companies with sustainable competitive advantages that can maintain their market position over time.

ROIC > WACC

Identifying companies where Return on Invested Capital (ROIC) exceeds Weighted Average Cost of Capital (WACC), indicating value creation.

Opportunity to reinvest capital in the Business

Prioritizing businesses with opportunities to reinvest capital back into their operations for continued growth and expansion.