Centrum PMS


About

Centrum Broking was founded by Chandir Gidwani in 1994. Later in 2011-12 it became a subsidiary of Centrum Capital. Centrum is a well- respected Financial Services Group, with diversified fee businesses and a rapidly growing lending platform for institutions and individuals. The institutional services include Investment Banking. SME,MSME and Micro Finance loans and an institutional broking desk catering to FIIs, Pension Funds, Indian Mutual Funds, Domestic Institutions and HNIs with widespread coverage on niche Midcap companies. CBL is registered with SEBI (SEBI Registration No. INH000001469).

AUM- 800 Crores approx
Clients- 200+

Key staff


Chandir Gidwani- Founder and Chairman Emeritus
Late. K. Byramjee – Founder
Jaspal Bindra – Executive Chairman

Abhishek Anand- He has completed MBA Finance from Mumbai University & PGDTFM from ICFAI University. He aces the institutional equity research domain from diverse sectors such as Telecom, Media, IT& Consumer, following 8 years of experience in said domain and a total of 10 years of experience on the whole.

Funds managed

There are 6 strategies that are managed by Centrum PMS

Segment Fund 
Large cap Built to last 
Medium capGood to great 
Medium cap Deep value IV
Medium cap Multibagger (deep value I) 
Small cap Micro 
Multi- Cap Wealth creator 


GOOD TO GREAT
Inception- 4 June 2019
No. of stocks- 20
Fund manager- Abhishek Anand
Investment objective- To create significant outperformance over the long term by investing in high quality Midcap and Small cap companies.
Fund type- Mid- cap
Benchmark- BSE 500

CENTRUM DEEP VALUE
Inception- 18 December 2015
No. of stocks- 21
Fund manager- Abhishek Anand
Horizon- Long term
Fund type- mid cap
Benchmark- BSE 500
Investment objective- Investing in deep value securities, some of which could be relatively unknown small and mid-cap firms, to build substantial long-term value. The aim is to maintain a Buy & Hold strategy on individual stocks during their projected period of outperformance, rather than remaining invested in a stock idea for the lifetime of the fund.


CENTRUM WEALTH CREATOR
Inception- November 2011
No of stocks- 20
Fund type- multi cap
Investment objective- The Portfolio objective is to achieve long term wealth creation while meeting the liquidity needs by investing in:
• Large-cap stocks to provide liquidity
• Deep value, mid-cap stocks to contribute to wealth creation.
Benchmark- BSE 500

CENTRUM BUILT TO LAST
Inception- 29 july 2019
No of stocks- 29
Fund type- Large- cap
Investment objective- The portfolio’s objective is to achieve long wealth creation by investing in large cap stocks
Benchmark- NIFTY 50

CENTRUM MICRO-CAP
Inception- 19th July 2016
No of stocks- 16
Fund type- small cap
Investment objective – • To seek long term capital appreciation by investing predominantly in equity/equity-related instruments of companies that can be termed as microcaps
• In order to provide stability to the portfolio, exposure to large-cap stocks may be taken in a weightage that is seen suitable depending
on the market condition.
Benchmark- BSE small cap
Horizon – not more than 3 years
Central

CENTRUM MULTI BAGGER ( DEEP VALUE 1)
Inception- 5 March 2012
No of stocks- 21
Fund type- mid cap
Investment objective – • To create significant value over the long term by investing in deep value stocks, some of which may be relatively unknown small and mid-cap companies
• The objective is not to necessarily stay invested in a stock idea throughout the life of the fund but to maintain a Buy & Hold strategy on individual stocks over their expected period of outperformance.
Benchmark- BSE 500

Investment philosophy

Centrum PMS aims at building a portfolio which exhibits strong fundamentals and sound management. It believes in achieving long term wealth creation. It also believes that long term investment would give them superior returns. The fund has a horizon of medium to long term.

Investment style
According to the analysts understanding, there is a mix of value and growth investing since both finding undervalued stocks and businesses with potential is mentioned. However, anything about the fund following a particular style of investing is not mentioned.

Investment Process
A great business according to the company is one that is well managed, scalable and generates superior returns on incremental capital. These are the parameters that are checked by the company during stock selection but how these are used is not clear. The company adopts a buy and hold strategy. It will hold the stock till the expected return from the particular stock are not fully realized. Valuation of the shall be done on various parameters like price/cash flow, ROE, price/book, sum-of-part valuation, dividend yield, price/earnings, replacement cost, etc. Selecting stock that provides higher value during the horizon is choose by the fund manager.

Analyst questions 


1. What is the company’s philosophy?

2. How does the company evaluate portfolio return? 

3. What are the quantitative models used by company ?

4. What are the risk management strategies? 

5. What approach is used by Centrum to select a portfolio?

6. How do you decide which portfolio is suitable for a client?

7. Whether ESG considerations are taken into account  for portfolio planning and construction?

8. Does the company avoid market timing? 

9. Why is BSE 500 a benchmark for maximum portfolios?

10. Out of 10-15 portfolios in the disclosure document only 6 strategies are available  for public reference. Why?

11. What is the company’s management style?

In Deep Value strategy how do you analyse which stocks have deep value in midcap and smallcap?
Is there any difference between Deep value and Multibagger(Deep value I)?
How do manage to sustain clients and also increase AUM in future?

By- Trusha Mewada

Peer Review- Janvi panchal

May 2021


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