CCSPL’s investment philosophy is derived from decades of experience in researching and investing in companies. The sum and substance of CCSPL’s investment philosophy is articulated in the following points.
Having a grand vision is one thing, but having the mental make-up to achieve it is quite another. The investment team of CCSPL constantly evaluate corporate management on parameters such as Calibre & demonstrated capabilities, Creativity, Ability to sustain a robust organization structure, Understanding of its customers and the market, and finally, the Delivery track record.
Management Value & Credibility
At CCSPL, we are very stubborn when it comes to Corporate Governance standards of our target portfolio companies. We map companies on parameters such as best corporate practices, disclosure and transparency levels, treatment to the minority shareholders and promise Vs performance track record. We do not take corporate values on just face value and continuously monitor corporate actions against stated values.
Growth & Sustained Superior Profitability
While the market potential and scalability are undoubtedly important factors, we look at businesses where growth opportunities are natural and exponential. Along with the ability of a business to grow, the business needs to generate a superior return of the capital employed.
We like businesses that enjoy long term sustainable competitive advantage. We like those companies even better where the sustainable competitive advantage comes from the ‘Service’ element in a business. We are most passionate about understanding how companies create and add value to its stakeholders. We believe the Service aspect of the business can lead to the long-term sustainability and superior value creation and can be a permanent hedge against disruption.
Execution Capability and Track Record
We like businesses which have achieved growth by sheer meticulous execution, be it completing projects always within time or budget or scaling up business within the committed timeline. For us, the best execution is an ideal combination of promoters’ vision plus risk taking ability and the high calibre professional management helming the execution.
Finally, we invest in companies where we feel like asking for a job
People aspire to work for the best companies in their chosen area of vocation. For us, we like to invest in companies where we feel like asking for a job. Selecting companies on this criteria involves lot of elimination and finally selecting a select few investment options that meet all the above mentioned criteria.