Roli Saxena's Colleagues at Drona Capital
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India
Drona Capital
Roli Saxena's Company Details
Drona Capital is an investment advisory firm which seeks long-term capital growth for its clients by pursuing time tested value-investing strategy. It strives to provide a sustainable and adequate return on investment at minimal risk. The firm seeks to look for exceptional businesses that are undervalued and invest in them long-term. We value our investors' needs of wealth preservation and therefore our objective is to ‘provide a sustainable and adequate return on investment at minimal risk'.Investment StrategyInvest in attractive businessesWe take a fundamental approach of qualifying exceptional business based on fundamental analysis. Thorough research is carried out using various sources like the company reports and industry research.Quantitative AnalysisLook for companies which have had strong historical financial performance in key return and liquidity ratios such as return on invested capital and free cash flow.Quantitative AnalysisThis involves detailed study of the industry, the company and its competition, employing the Porter 5-Forces Framework to assess the industry attractiveness.Buy at deep discountsPrice v/s Value Approach: Invest only when the price of the stock is significantly lower than the intrinsic value of the business. Minimal RiskSustainable return is possible only if the risk is reduced. Investment in a company is made only when these risks are significantly low.Long-term investmentsThe market price of a great business with consistent earning is likely to reflect the earning over a long period. Therefore if we find a good business, we stay invested long term.Investment ApproachTake advantage of market inefficiencies from time to timeWe have a ‘Contrarian' approach and bad news might be good news for us. The market at times over reacts to a ‘bad news'.Focus on small and midcapsCompanies with market capitalizations of less than $10 billion have a higher probability of being neglected, or escaping the radar of large mutual funds.Invest in American CompaniesThe United States economy is the largest in the world, and the country has the highest GDP globally (approximately a fifth of global GDP). The US is home to 29.6 million small businesses, 30% of the world's millionaires, 40% of the world's billionaires, as well as 139 of the world's 500 largest companies.