Alchemy High Growth PMS

Diversified

Equity

India Super Value

Others

Aggressive growth Investor Profile

Investor Profile

Empty

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Alchemy High Growth - HDFC Custody focuses on high-growth Indian companies for wealth creation.

What This Strategy Does

Alchemy High Growth PMS is an equity fund which captures India's mid-cap and small-cap growth opportunity through a concentrated portfolio approach, deploying capital across financials, industrials, and materials to achieve broad-based earnings growth.

CW Expert Research Notes

Resilient Downside Protection

The strategy has demonstrated consistent downside protection across market cycles, outperforming the benchmark in 7 out of the last 10 years.

Concentrated Mid-Cap Exposure

The portfolio's differentiated construction reflects a conviction-driven approach, with a 55% allocation to mid-cap stocks and concentrated positions in companies like Cartrade Tech and BSE Ltd.

Cyclical Earnings Catalyst

The strategy's overweight exposure to industrials and financials positions it to benefit from a potential capex cycle recovery and earnings revisions, though rising rates pose a key risk.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Benchmark Performance Comparison

Alchemy High Growth - HDFC Custody

NIFTY 50

Detailed Risks

Market Risk

Potential recession driven by tightening monetary policy could dampen consumer demand, impacting mid-cap cyclical holdings.

Liquidity Risk

Volatility spikes or market dislocations could impair execution for small/mid-cap positions, hindering rebalancing.

Concentration Risk

Significant exposure to financials (40.1%) and industrials (20.5%) amplifies downside from sector-specific headwinds.

Specific Strategy Risk

Regulatory scrutiny on fintech/payments could pressure One97 Communications, while competitive dynamics challenge Motilal Oswal.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Captures India's entrepreneurial dynamism through a concentrated portfolio of high-growth small and mid-cap companies. This approach provides exposure to businesses disrupting traditional sectors and capitalizing on structural tailwinds.

Broader Market View

Market Outlook

The equity markets appear to be in a post-correction recovery phase, offering an attractive entry point. Macro drivers such as consumption revival, earnings normalization, and capex growth are aligning with the strategy's exposure to consumer, financial, and industrial sectors. While risks like competition and cyclicality persist, the present environment seems conducive.

Why This Strategy is Attractive Now

This strategy appears well-positioned for the current environment with its balanced exposure across consumer cyclicals, financials, industrials, and technology. The portfolio's diversification across around 70 holdings, including market leaders, coupled with a moderate beta and flexibility, suggests a risk-adjusted approach aligned with the market's recovery dynamics.

Investment Style & Process

Investment Style

The portfolio appears to reflect a Growth at Reasonable Price (GARP) approach, combining exposure to mid and small-cap companies in structurally growing sectors with a valuation discipline, as suggested by the market capitalization and sector allocations.

Why it Makes Sense

A GARP strategy seems sensible in the current market context, capitalizing on structural growth opportunities across sectors like financials and industrials, while maintaining valuation discipline and diversification to moderate risk.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from across market capitalization segments, with a focus on companies exhibiting structural growth drivers and reasonable valuations. Selection: Stock selection likely emphasizes companies with strong competitive advantages, visible earnings growth trajectories, and attractive risk-reward profiles relative to their respective sectors and growth prospects. Construction: Portfolio construction suggests a preference for a diversified, multi-cap approach with exposure to sectors poised to benefit from India's economic growth, balanced with risk management through position sizing and valuation discipline.

Portfolio Holdings Overview

SectoralAllocation

Energy & Infra16%

Capital Goods20.5%

Financial Services40.1%

Consumers9.8%

Utilities19.3%

Technology11%

Top Stock Holdings

CompanySectorAllocation

CARTRADE TECH LTD7.00%

BSE LTD6.00%

MULTI COMMODITY EXCHANGE OF INDIA LTD6.00%

GE VERNOVA TnD INDIA LTD6.00%

BHARAT ELECTRONICS LTD6.00%

MOTILAL OSWAL FINANCIAL SERVICES LTD5.00%

HITACHI ENERGY INDIA LTD5.00%

NARAYANA HRUDAYALAYA LTD4.00%

SOBHA LTD4.00%

ONE 97 COMMUNICATIONS LTD4.00%