Basant Maheshwari Wealth Advisors

Funds managed

Product name	Style/ Factor	Sector	Licence
Equity	?	Multi-cap	PMS

About the AMC

Basant Maheshwari Wealth Advisors was established on 30th July 2015 and registered under SEBI. The company offers Portfolio management service and Advisory service to investors.

It is a SEBI registered portfolio management company (Sebi Registered Portfolio Managers – INP000004946)

It manages 100+ UHNI & NRI families, across 500 Cr+ assets. They analyze products across 4 Ps – Philosophy, Performance, Portfolio, and Price with an endeavor to ascertain the Quality, Risk and Consistency(QRC) attributes before suggesting the same to investors. 

The firm focuses on investing in companies which have predictable and consistent earnings and can typically generate above average earnings growth over longer periods of time. We offer portfolio management services on complete need analysis that are designed to meet an individual’s requirements and financial goals.

Key staff

Basant Maheswari– Co-founder & Partner – Basant is a commerce graduate from St Xavier’s College Kolkata and is also a Cost Accountant. As a full time equity investor, Basant brings with him 22 years of experience in stock market investing. He has had a history of identifying several multibaggers over the past decade prominent ones being Pantaloon Retail, TV18, Trent, Page Industries, Titan industries, Hawkins Cooker, Gruh Finance and Repco Home Finance. In 2006, he found the online portal www.theequitydesk.com a platform where investors discussed investing ideas and thoughts. LinkedIn

Shalu Mehra– Co-founder & Partner – Shalu Mehra has had over 15 years of professional work experience in managing positions of varied responsibilities in the Hospitality, Customer service, HR-recruitment & corporate training sectors. Shalu is a passionate investor with significant personal investments in Indian Equities. A value investor, she has been managing her personal and her family’s investments over the last 8 years. She brings on table an attention for detail, versatility and thoroughness. Her past dynamism is proven by the fact that after a successful career in the hotel industry, she successfully transitioned to HR (Recruitment & Training) in the BPM industry. LinkedIn

Services

It is engaged in the business of rendering fund management services to funds, alternative investment funds, individuals, corporates, institutions and all such classes of investors. They act as advisors and consultants and render advisory as well as management services in the field of investments, finance, business, trade, industry, management, commercial, economic, technical, human resources, legal and all other allied, connected or related fields. 

Investment Philosophy (for firm)

The firm believes in investing in –

Companies with predictable and consistent earnings- They like to bet with companies that have a predictable stream of earnings; operating in sectors that have a tailwind behind them. They like to focus on sector leaders.

Scalable Businesses- The business has to be scalable in terms of both value and volume growth. As investors, they should be able to assume that the entire scale of operations can be ramped up multiple times from what is presently being done.

Growth- A stock that grows at above average rates is like a “child who comes first in class – he always gets what he wants”. We focus on companies that can deliver above average earnings growth. Picking a winning stock is as important as avoiding certain stocks.

Return on Equity- Growth with high RoE is a potent combination. A high RoE indicates that the growth can be self sustaining without repeated capital dilutions. Moreover, the RoE also indicates the level of efficiency with which the business is being run (net profit ratio) or under which the sector dynamics (asset turnover) are placed.

Management- They don’t partner “crooks” no matter how remunerative the commercials might seem. However, both the management and business dynamics are important for an investor to make money.
Small Companies- They prefer smaller companies. Though an entire portfolio cannot be set up based on small caps, the underlying objective would be to focus on smaller capitalized companies.

Cash Flow- High growth with free cash flow is desired but isn’t the only yardstick on which investments will be based. The differentiating factor between a free cash and a negative cash flow company is the urgency with which an investor has to exit the stock (when to sell a stock) once growth slows down. Negative cash flow companies need immediate attention during adverse times whereas for free cash flow companies the reaction time could be a little longer.

Dividend payout-The company sees dividends as a statement of intent and not for the cash that comes into our bank account. Dividends and taxes are compulsory payments and indicates that profits are for real because no one pays real cash on fake profits.

Source- http://www.theequitydesk.com/content/images/media/Disclosure-Document.pdf

The above table shows the performance of the portfolio manager with the benchmark index NSE NIFTY 50 and BSE SENSEX. The time weighted rate of return method is used to calculate the performance of the portfolio manager.

Graph comparing Rank 1 and 2 of Best Multi Cap PMS in 3 years (Risk Adjusted Returns)

Source- https://pmsbazaar.com/Visitor/PMSComparison

Media

Maheshwari’s mantra: Don’t be defensive, get a little adventurous now
Dated: November 19, 2020 Source: Economic Times

In the article, Basant Maheshwari is asked about the banks that people should put their money towards, considering the present scenario of COVID-19. He says that his opinion should not be taken as a recommendation. However, people should look into investing their money into banks that have survived the worst parts and have a provision coverage ratio which is hitting mid-70s from mid-50s or 60s. He says that it is the time to get their hands dirty with banks that have been adequately funded.

In times like these, he says, one must not play safe. Instead, be adventurous and not buy those second quality banks just because they are going to grow back at 20%.

Analyst questions

Your investment philosophy states that you believe in investment towards companies with consistent and predictable earnings. However, one of the main points in the philosophy is that “small is beautiful”. Isn’t that a conflicting idea?
In an interview with ET , Basant Maheshwari states that people must be adventurous in their investing, but wouldn’t that go against ‘companies with predictable and consistent earnings’?
How can you pick stocks that can surely deliver above average returns? The market is unpredictable, wouldn’t you saying this make it seem a bit overconfident?

Prepared by- Medha Mehta