My Value Picks

Image Credit | Assoc. Prof. Promila Agarwal

Don’t just be lazy.
Be very lazy.
Don’t sell.

Track record:
16-Year CAGR: Nalanda: 19% vs Nifty: 9.5%

About Pulak Prasad:
Founder of Nalanda Capital

Portfolio Construct:
Portfolio of 30 stocks
High concentration
75% in 5 companies
> 9 companies returned 25x
Average holding period of 11-14 years

Investment Mantra:
Not long term, permanent
Not equity investors, business owners
High quality, invest at a fair price

Nalanda Capital’s Checklist:
Historically high ROCE
Assess management teams
Can take business risks without financial risk
Never buy high quality cheap; quality will be expensive

Nalanda’s Page Industries Bet:
Invested in 2008 for 8% stake
2008 PE 12x
FY25 PE 90x

Nalanda’s Portfolio:
Havells 2007
Page Oct 2008
Berger Aug 2009
Mindtree Feb 2009
Supreme 2010
Exide Mar 2011
AIA Sep 2011
DB Corp Jun 2012

Nalanda’s Avoid List:
Crooks, cheats
M&A junkies
Leveraged companies
Turnarounds – probability of revival low
Risk of governance issues: Airlines, Contract Mfg., Textiles
Industries susceptible to rapid change: Food delivery companies
Car companies: Not the best track record

Reasons for Selling:
Major M&A in the works
Bad capital allocation
Bad initial investment

To help investors understand…
How to think like a market guru
Thought process of market gurus
Investment philosophies different, but the same
Risk management approach
How legends identify multi-baggers
How to value a business
The power of independent thinking

What is the secret behind smart investing? https://www.youtube.com/watch?v=FXNYNz_N8II