Paul Asset

The firm believes in the bottom-up fundamental analysis approach. The firm prefers an asset-light business model that can grow while maintaining a quality balance sheet with sufficient cash flow from operations and headed by professional quality management. It would have been better if the business has some competitive advantage or business moat or currently enjoying some business tailwind. The firm prefers business having a debt-to-equity ratio of less than 1 (or decreasing), average ROE and ROCE of more than 12% (or increasing), comfortable working capital cycle, zero pledged shareholding and growth without excessive debt. The firm does not believe in any MS-Excel based valuation technique (like DCF method), but relies on many qualitative aspects while judging valuation. Although, the firm selects stocks with a long-term view in mind but does not hesitate short-term profit booking if the situation demands. The firm prefers staying away from stocks that are consistently touching new 52-week low, no matter how attractive the valuation is.