Kings of Capital Archives

Strategy Series

Our articles specific to the six investment strategies we offer. Whether you invest with us or are looking to invest, these
articles can you give you an insight into why we make the decisions we make.

Kings of Capital

Prudent Corporate: The tollbooth for Indian SIPs

Prudent Corporate, India’s third-largest mutual fund distributor, has grown revenues and EPS by 29% and 46% respectively over FY19-24. During this period, Prudent has risen from being the 7th largest distributor to being the 3rd largest in FY24, surpassing giants such as HDFC Bank and ICICI Bank in terms of mutual fund commissions earned. Prudent’s success can […]

Kings of Capital APR 08 . 8 MIN READ

How Will Tight System Liquidity Impact KCP?

Kings of Capital DEC 09 . 8 MIN READ

Kings of Capital Portfolio Newsletter: Quality lenders to benefit from RBI’s credit shakeout

Kings of Capital SEP 07 . 11 MIN READ

Learning from history: Discounting in Financial Services is a bad strategy

Kings of Capital

Prudent Corporate: The tollbooth for Indian SIPs

Aug 06 . 7 MIN READ READ MORE

Kings of Capital

How Will Tight System Liquidity Impact KCP?

Given consistently strong credit demand and weak deposit growth, we are now staring at a tough funding environment with banking sector credit to deposit ratio at an all-time high of ~80%. This funding environment along with consistent regulatory action will separate the men from the boys in the upcoming quarters leading to divergent growth outcomes […]

Apr 08 . 8 MIN READ READ MORE

Kings of Capital

Kings of Capital Portfolio Newsletter: Quality lenders to benefit from RBI’s credit shakeout

To curb systemic risk posed by the sharp growth in unsecured credit and NBFC credit in the banking system, the RBI raised risk weights on both from 100% to 125%, effectively asking lenders to set aside more equity capital for these credit risks. This move is likely to have highest impact on business models of […]

Dec 09 . 8 MIN READ READ MORE

Kings of Capital

Learning from history: Discounting in Financial Services is a bad strategy

History shows that competing only on the basis of price either as a lender or as an insurer has inevitably led to heavy losses and in some cases to bankruptcy. In this newsletter, we discuss how PSU general insurers in their quest to gain market share, cut pricing in group health insurance for 5+ years […]

Sep 07 . 11 MIN READ READ MORE

For more content on our strategy, visit the archives

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Curated Collection

HANDPICKED ARTICLES FOR OUR ACTIVE INVESTORS

Consistent Compounders

How Volatile Funds Cost Investors Dear

High volatility in an equity portfolio creates zones of ‘excitement’ and ‘fear’ based on recent performance. This adversely affects the quality of decision making by equity investors. As a result, historically, investor returns in Indian equity funds have been lower than fund returns across different periods. Similarly, a recent example from the US – NYSE […]

Feb 01 . 6 MIN READ READ MORE

Consistent Compounders

The Benefits of Timing are Inversely Correlated with the Quality of Fundamentals

The rate at which fundamentals of a company compound (and hence its share price) over the long term is inversely correlated with the quantum of benefit that an investor can achieve by perfectly timing her purchases at the bottom of the share price trajectory. Moreover, for a portfolio consisting of high-quality companies, benefits from a […]

Jan 03 . 8 MIN READ READ MORE

Consistent Compounders

CCPs use more ‘S-curves’ to elongate their fundamental compounding

Value addition from every initiative undertaken by a company follows an ‘S-curve’ with three parts to it – the investment phase, the growth phase and the fade period. The fundamentals of the overall company are a consolidation of ‘S-curves’ of all initiatives. There are several limiting factors to every initiative such as addressable market size, […]

Dec 01 . 8 MIN READ READ MORE

Consistent Compounders

The Path to Consistent Compounding is Paved with Free Cashflow

There are four key drivers of free cashflow in a business – revenue growth, profit margins, working capital efficiency, and asset turnover. The order of importance across these four drivers differs across businesses. As Marcellus’ CCP companies invest in technology to improve operational efficiencies, those companies that sell day-to-day essentials to their customers whilst avoiding […]

Nov 02 . 17 MIN READ READ MORE

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Kings of Capital

Getting Stronger With Every Covid Wave

Strategy Series

Prudent Corporate: The tollbooth for Indian SIPs

How Will Tight System Liquidity Impact KCP?

Kings of Capital Portfolio Newsletter: Quality lenders to benefit from RBI’s credit shakeout

Learning from history: Discounting in Financial Services is a bad strategy

Prudent Corporate: The tollbooth for Indian SIPs

How Will Tight System Liquidity Impact KCP?

Kings of Capital Portfolio Newsletter: Quality lenders to benefit from RBI’s credit shakeout

Learning from history: Discounting in Financial Services is a bad strategy

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