Baroda BNP Paribas Gold ETF · NSE:BBNPPGOLD
Baroda BNP Paribas Gold ETF — Baroda BNP Paribas Mutual Fund — Investor Presentation (May 2023)
28 slides from Baroda BNP Paribas Gold ETF's investor presentation, May 2023
Slide 1: Baroda BNP Paribas Value Fund NFO
B Baroda & BNP PARIBAS hz MUTUAL FUND Together for more VALUE PRICE UNLOCKING POTENTIAL THROUGH VALUE INVESTING ______ PRESENTING BARODA BNP PARIBAS NFO PERIOD VALUE FUND (An open-ended equity scheme following a value investment strategy) 17™- 31" MAY, 2023 (Offer of units of Rs. 10 each during the
Slide 2: Views on measuring value and investment behaviour
ir “Price is what you pay; value is what you get.” | - Benjamin Graham MI ; Views on Measuring Value “ALL intelligent investing is value investing, acquiring more than you are paying for. You must value the business in order to value the stock.” | - Charlie Munger 11 : Views on Investment Behaviour
Slide 3: Value Investing - How it works?
> Value Investing - How it works? Imagine you are planning to buy a house and the cost of the house is %2 crores Is the cost expensive? Or cheap? Cost = 2 Crs Value = ? To answer this question, you need to know the how much the house is worth. B Baroda §&% BNP PARIBAS hea MUTUAL FUND
Slide 4: Value Investing - How it works?
> Value Investing - How it works? =~ What if the cost of similar sized houses in the same locality is 1.90 Crs. Now is the cost of the house that you liked expensive or cheap? Cost = 2 Crs Value = 1.90 Crs B Baroda §&% BNP PARIBAS hea MUTUAL FUND
Slide 5: Value Investing - How it works?
> Value Investing - How it works? But do you know the worth of the house in near future? What if you come to know that the building of your interested property is going for redevelopment and the property value post redevelopment will be 2.50 Crs. For cost of %2 Crs is the property Expensive or Cheap
Slide 6: Understanding Value Investing!
> Understanding Value Investing! What is Value Investing? > Value investing is about identifying and investing in stocks that are ; under-priced or are at a discount to Over-priced their intrinsic value. ave > Intrinsic value is the true potential of the stock. Value Market price Reasons for mis-mat
Slide 7: Where to look for value opportunities?
> Where to look for value opportunities? Value opportunities can be found across Markets, Sectors and Stocks vr > Crisis creates > Short term issues value opportunities > Unlocking value > Markets become through pleaner > Temporary restructuring, challenges like the inate efevs and raw material acqu
Slide 8: Value Opportunities in Markets
> Value Opportunities in Markets Nifty 500 PE Value opportunities | me —. due to Sub-prime Value opportunities crisis 38 Value opportunities due to Pandemic due to Euro crisis Current valuation below the historic . ? se---7 average valuation 8 Soa Mar-07 | Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 M
Slide 9: Real life case studies
Slide 10: Value Opportunities in Sectors: Information Technology
> Value Opportunities in Sectors: Information Technology > Nifty IT Historic PE ) > Global slowdowns have caused Cycle 1 Cycle 5 i the PE ratio of technology sector 48 \ Cycle 2 Cycle 3 Cycle 4 J to fall 38 ¥ a 7a 28 yaa fi om i > This has created value eV: 7 im opportunities a ee avs ; i ae HS PF G
Slide 11: Value Opportunities in Sectors: BFSI
> Value Opportunities in Sectors: BFSI > PSU Banking sector had gone through Rigi sake Hist te Bp difficult phases in the past poe! Cycle 2 | > Credit quality issues had resulted in PSU banks trading at a discount to book value 5 me oF - © © NM MM @ © P HP PDP HM : 5 5 s “ od x < . RY ‘ iv v s x > T
Slide 12: Value Opportunities in Stocks: M&A
> Value Opportunities in Stocks: M&A Before Acquisition > Apharma company operating in a lucrative segment > The management was happy with average business and could not capitalise on full potential > Consequently the stock under-performed its peers After Acquisition (By a PE investor in 2020) > The
Slide 13: Value Opportunities in Stocks: M&A
Ds Value Opportunities in Stocks: M&A Nifty Pharma Index vs Pharma Stock _ Jump in market price of the pharma _- stock post M&A from Mar’20 .. 34.6 Mar-15 Baroda §&% NP PARIBAS hea MUTUAL FUND 31-Mar-16 = NSE Pharma Index 31-Mar-17 31-Mar-18 31-Mar-19 ==—=NSE Pharma Index -=—=Pharma Company a Mar-22
Slide 14: What is not Value Investing?
> What is not Value Investing? There is a thin line between value investing and value traps. What are value traps? = & > Investing in companies which appear to be trading at discount VALUE © — he > Such companies may have poor fundamentals > May erode investors’ value over long term How to avoid val
Slide 15: Value Traps: Case study of a low PE Stock
> Value Traps: Case study of a low PE Stock > India is an inherently growth market. Hence companies and/or sectors which are not growing or growing at pace Lower than overall economy get de-rated very significantly. > Below is the example of a company operating in automotive lubricants industry. > T
Slide 16: Value Traps: Case Study for Metal Industry
> Value Traps: Case Study for Metal Industry Metals PE vs India HRC prices Focus on the cycle than low PE > Earnings in sectors like Metals and Oil&Gas = ___ 1100 1000 are highly dependent on the underlying a oO : ; Senta 2 commodity prices. Fa ss 3 = 600 > Consequently, when the underlying g 500 aa
Slide 17: Performance: Value vs Broad Market Index
> Performance: Value vs Broad Market Index j =a Nifty 50 { Last 10 Years Nifty50 TRI Value 20 TRI _ Fy23 1% 4400 Thal cAGR ndex 4,378 FY22 20% 3900 Sie 22 iy FY21 72.53% asco | —-MifyS0Value20TRI 16% 25,054 -FY20-25% ae FY19 16% FY18 12% 2400 FY17 20% 14% FYIS 28% 24% 1400 FY14 19% 900 A FY13 9% oc
Slide 18: To Sum it up...
> To Sum it up... 02) 03° “ Value opportunities can be found at ; - Beware of Value Traps: Low PE does \ markets, sectors and stock level | not translate to value stock Roe eee Same Cees Tee eee wee Seen eneeeweree yee ‘i “uD SSaETEDEeaOee i aa ee oi . * di Th \ / ol \ J 04} _ Value Investingisinves
Slide 19: Introduction: Baroda BNP Paribas Value Fund
INTRODUCTION... BARODA BNP PARIBAS VALUE FUND (An open-ended equity scheme following a value investment strategy) B Baroda §&% BNP PARIBAS hea MUTUAL FUND.
Slide 20: About the Fund
About the Fund > The fund follows the value investing philosophy >The fund aims to invest in companies which aims to generate wealth in the long-term. >The fund has a unique investment approach which focuses on picking value opportunities available at market, sector and stock levels. > The fund eval
Slide 21: How we define Value? The Iceberg Approach
> How we define Value? The Iceberg Approach Iceberg Approach: Going beyond PE Commonly used valuation parameters like price to earnings §<—-s> Different valuation markers for different industry / sectors Stock Picking Opportunities < eal Holistic approach to value incorporating factors like: > Merge
Slide 22: Investment Philosophy - S Framework
> Investment Philosophy - 3 S Framework “To distill the secret of sound investment into three words, we venture the motto, MARGIN OF SAFETY.” - Benjamin Graham “Safety” is in the core of our investment philosophy. > Companies which are =) : : &)) Margin of Safety in Balance Sheet financially sound :
Slide 23: Investment Philosophy - S Framework
> Investment Philosophy - 3 S Framework Investible Universe Vv Identifying undervalued é companies using F Strong 02 the most suitable undamentals/ valuation Business Valuation techniques Screeners to scan the Screeners Screeners investible universe to determine companies “ with strong financials Re
Slide 24: Advantages of investing in Value Funds
> Advantages of investing in Value Funds Catching Potential Gems Less Volatile Value investing is all about Involves buying long term looking for stocks with stocks which tend to be less unrealised potential volatile Cc Rp i aur Leveraging on market sentiments Markets tend to move according to selec
Slide 25: Who should Invest?
> Who should Invest? Patient Long Term Investors > Investors looking to invest in value stocks with adequate margin of safety. > Investors looking to stay invested for more than 3 years > Investors who are saving for long term goals Investors looking for diversification from growth oriented portfoli
Slide 26: Fund Facts
Ds Scheme Name: Scheme Type: Category Investment Objective: Asset Allocation: Benchmark: Fund Manager": Load Structure: Plans and Options: Minimum Application Amount: Baroda NP PARIBAS he MUTUAL FUND Fund Facts Baroda BNP Paribas Value Fund An open-ended equity scheme following a value investment st
Slide 27: Risk Factors
> Risk Factors The risks associated with investments in equities include fluctuations in prices, as stock markets can be volatile and decline in response to political, regulatory, economic, market and stock-specific development etc. Please refer to scheme information document for detailed risk facto
Slide 28: Disclaimers
> Disclaimers In the preparation of the material contained in this document, Baroda BNP Paribas Asset Management India Ltd. ("AMC") (formerly BNP Paribas Asset Management India Private Limited) has used information that is publicly available, including information developed in-house. The AMC, howeve
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