DSP Focus Fund

[Title to come]
[Sub-Title to come]
Strictly for IntendedRecipients Only
Date
* DSP India Fund is the Company incorporated in Mauritius,under which ILSF is the corresponding share class
Sep 2021
DSP Focus Fund
| People | Processes | Performance | Portfolio

2
What can investors expect ?
CONCENTRATION A concentratedportfolioof ~ 20-25 stocks (Optimaldiversification)
HIGH ACTIVE SHARE
Convictioninourideas wouldmanifest into higherposition size. Ourtop
convictionbet woulddeserve a muchhigher allocationvs our20thor25th idea.
LOWER TURNOVER
Time horizons 2-3 yrs,if the business continues to progress accordingto our
expectations andif valuationnever gets too highit may even end up being 10 yrs.
KEY RISK Temporary periodof underperformance &drawdowns due to lower portfolio
turnover
ALPHA
Concentratedbets,high active share andmargin of safety candeliver alpha over
benchmark over ~ 5 years time horizon
COST OF ALPHA
Temporary drawdowns &periodof underperformance make the portfoliounsuitable
forinvestors withshortertime horizons (< 3 years)
MITIGATION Drawdowns couldbe avertedby seeking adequate Margin of Safetyinterms of
valuation&business growth

3
DSP Focus Fund
o Concentrated portfolio of ~ 20-25 stocksof the best
investmentideas
o Market cap agnostic stockselection
Portfolio Construction Companycharacteristics
Fund Objective & Style Companies we avoid
o Large opportunity – provide runwayfor growth
o Company’s right to win : to exploitthe opportunity
and create value
o Aligned management : Allocatesand distributescapital
judiciously
o Valuation: Providesadequate “Margin of Safety”
o Alpha mindset
o Bottomup stock section
o High deviationfrom benchmark(Active Share)
o Capital misallocation
o Risk of disruption
o Susceptible to regulatory changes
~ 80%-85% allocation based on core principle and ~ 15-20% Tactical Allocation

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INVESTMENT TEAM

5
Investment team
Vinit Sambre– Fund Manager
• 21 years of investment experienceacross 4 major market cycles
• Joined DSP in July 2007 as a Portfolio Analyst.
• Previously worked withDSP Merrill Lynch as a part of its Global PrivateClient business as an Equity Strategist
• CharteredAccountant from ICAI
Charanjit Singh (12)
AVP, Capital Goods,
Infra, Power Utilities,
Consumer Durables
TEAM SUPPORTING THE FUND MANAGER
Experienced investment team with a wide coverage of Indian equity markets
FUND MANAGERS*
*Jay Kothari is Dedicated Fund Manager for overseas investments. Years in brackets ()is years ofexperience.
Chinmay Sapre (9)
AVP, Aviation, Realty
Abhishek Ghosh (12)
AVP, Small & Mid Caps,
Transportation
Kaushal Maroo (11)
AVP, Autos, Ancillaries,
Cement
Dhaval Gada (10)
AVP, Banking and
FinancialServices
Abhishek Rathi (13)
AVP, Financials &
Industrials for Long /
Short
Aayush Ganeriwala
Senior Manager, Oil&
Gas, Metals
Suryanarayanan
Manian, CFA (10)
VP, Tech, Telecom,
Media, FMCG
Nilesh Aiya(12)
AVP, ForensicResearch
Chirag Dagli
VP, Healthcare
Abhishek Singh (14)
AVP, Portfolio Manager
Bhavin Gandhi (15)
AVP, Portfolio Manager
Resham Jain, CFA (14)
VP, Small & Mid Caps,Agri
inputs, Textiles,
Chemicals, Retail

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Date
INVESTMENT FRAMEWORK, PROCESS

7
BMV - Investment Framework
DSP Focus fund seeks companies with High ROEs/Growth,Low Leverage & Positive Cash Flows
MANAGEME
NT
VALUATION
BUSINESS
MODEL
 Simple businesses(bettervisibility&
higherpredictability)
 Good growth potential
 Competitive advantage
 High Cash Flows
 Low leverage
 SuperiorROCE/ROE over cycles
 Contra-cyclical plays
 Credible &capable
 Past track record
 Prudentcapital allocation
 Reasonable valuationsinconjunction
withfundamentals
Source: Internal.

8
Business Model – Identifying large opportunities
Size of
Company
Large
Large
Small
Small Size of Market
o Lower failure rates
o Company hasgainedscale
o Examples - Insurance,Banks,IT
The company hasdemonstrated
successful model and ability to scale
up
Wealth destructors
Steady compounders
Compounding has ceased
o The company hasbeen successful
in the past
o The marketis saturated
Wealth Creator
o The markethas limited
opportunityforgrowth
o The company hasno clear right to
win
What we avoid What we seek

9
Business Model - Competitive advantages (Moats) are what we looking for….
Company may not be able to create value andfend off competitionif it doesn’t have Moats in spite of large
opportunities. Key sources of competitive advantages that we look forinclude
Intangibles Cost Structure Network Effect Switching costs
Brands/Patentsand
Regulations*
Lower cost of production
which stemfrom process,
location,scale or access to
unique assets.
Cost (time,hassle,capital
or risk) that customer
wouldincur from one
producer or service
providerto the other
The value of a product
increasesfor both newand
existingcustomersas new
customers jointhe network
Not All Moats are equally valuable Most businesses have no moats (our default assumption for evaluating any
new company) or have legacy moats i.e. no ability to reinvest in the business. We look for companies which have
either large reinvestment opportunity or capital light businesses whichdo not need significant capital to grow
* We refrainfrombuyingcompanies whichbenefitfromfavourable regulationsalone
Gujarat Gas SBI Life CONCOR Infosys, AIA Engineering
The sector(s)/stock(s)/issuer(s) mentioned in this note do not constitute any recommendation of the same and the Fund may or may not have any future position in these
sector(s)/stock(s)/issuer. Portfolio data as on 30 Sep 2021

10
Business Model - Quality of business
 Facets of quality are
• CapitalIntensity – Amount of capital whichcanbe reinvestedin the business
• CapitalEfficiency – Returns generatedoncapital employed (Superiority of ROCE)
 Simple businesses (with optionality of complementary extensions)withgrowingmarket shares
 Quality of the business is displayed through its ability to generate superior(spread over the cost of capital),
consistent,predictable anddurable ROCE.
 ROCE alongwithgrowthdefines the magnitude of value createdby the business
 Size the opportunity determines capital reinvestment whichin turns drives growth
 Cashflows (not earnings)defines the true characterof business
 Bothquality of business and management are indispensable, however quality of business is ourfirst filter
for selectingcompanies.
 ROCE of the business is functionof the characterof business where as ROE of business is functionof
Business + Management.

11
Management – Alignment of interest withshareholders
Capitalallocation
 Ability to know where to allocate capital (andwhere to deny it)
 Remainfocussedonfew areas ofcompetence
 Investing in areas withsimilaror higher ROCE
CapitalDistribution
 The capital to be distributed back to share holders in excess of
• Funding future growth
• Funding onacquisition
• Building contingencies
OtherFacets
 Integrity andpassion
 Stakeholder relationship – with not only shareholders,but also
employee,vendors, customers
 Governance standards
 Past Track recordof the management
Key traits of competent management = Capital Allocation + Capital Distribution

12
Valuation – Business cycle and Valuation
Business Cycle
Early Mid Advance Late
1.0 2.0 3.0 4.0
Valuation
Excessive
4.0 2.5 3.0 3.5 4.0
High
3.0 2.0 2.5 3.0 3.5
Low
2.0 1.5 2.0 2.5 3.0
Attractive
1.0 1.0 1.5 2.0 2.5
4
1
3
2
 The characteristics of the investee companieschosenwould mean valuationare unlikelytobe inlow bucket unlessoverall
market valuationsare undemanding
 We activelyseekexposure to companies in earlyor midcycle
Peak earningsand
valuation
Favouredzone given
market valuations
Biggestsource of alpha if
thesisis correct
Valuationstill supportive

13
Valuation - Price Value Gap (way we think about valuation)
 Margin of Safety: We scout for highfor Margins of safety = Large GapbetweenIntrinsic Value andPrice
 Stock returns generally mirrors the earnings growth(unless the stock is incorrectly pricedto begin with).
 Sharp focus on entry multiples: We closely focus on the entry multiples which we pay for the businesses
and generally avoid higher exit multiples for returns – if entry multiples are chosen properly , we can be
assuredof stock returns = earnings growth.
 Re-rating is not our base case: The stock re-rating can be significant driver of overall returns as the
market changes its perceptiononthe stock – “Re-rating” however is not ourbase case for valuation
 Business cycle critical to judge value: Companies in early or mid-cycle cancover up for moderately higher
valuation; Late cycle companies withexcessivevaluations are untenable.
 Stocks held for momentum: We may not be comfortable in buying companies which are in late cycle and
excessively valued, however there will be stage were our core holding get significantly “re-rated”. These
are then shifted from “Core portfolio bucket” to “held for momentum tactical bucket” and are sold as the
momentumstarts to fade.
Stock Returns can be derived as = Earnings Growth x Valuation multipleChange

14
Metrics considered for stock selection - For non-financial stocks
Source: Internal.
Metric Threshold Rationale
ROE
10 YearYield + 5%
(6 out of 10 years)
Long-term consistency is very important. 5% above risk free rate is floor for
profitability in business.
5 Yr. Avg. EBITDAGrowth 5 Year AverageNominal GDP
Growth
Growthhigher thannominal GDPgrowthimprovesoddsofoutperformance.
5 Yr. Avg. PAT Growth
EBITDAGrowth>Sales
Growth
Over 5 Years Indicatesoperating efficiencyandoperating leverage inthebusiness.
TaxRate
>20%
(6 out of 10 years)
Lowers risk of accounting misrepresentation. Tax payment is one indicator of
clean accounting.
(EPS) Growth
Variability
<100% over 5 Years Indicatorof stability of earnings in business. Helps to size positions.
Payout Ratio
>15%
(6 out of 10 years)
Indicator of cash generation in the business and profit sharing mindset of the
management.
Net Debt/ EBITDA
Debt/Equity
<3x
<1x
Lower ratio depicts less leverage indicating strength of the business and makes
business less vulnerable during downturns.
Valuation
HighROE justifies higher P/E
(Trailing 12M)
Will ascribe higher valuations for businesses with high ROE provided other metrics
arealso strong.
Free Cash Flow Yield
Positive
(6 out of 10 years)
Explains quality of operating earnings especially in the context of working
capitaland capex.
Receivablevariability <30 days
Lower variability (not the absolute days) in receivable days suggests strong
bargaining power of the business.
Inventory variability <30 days Lower variabilitysuggests lower cyclicalityof business.
Payable variability <30 days
Lower variability indicates bargaining power of the management and reduces the
risk of high debt disguised as payable.

15
Metrics considered for stock selection - For financial stocks
Source: Internal.
Metric Threshold Rationale
ROE
10 Year Yield + 5%
(6 out of 10 years)
Long-term consistency is very important. 5% above risk free rate is floor for
profitability in business.
5 Yr. Avg. PAT Growth
5 YearAverage
Nominal GDPGrowth
Growthhigher thannominal GDPgrowthimprovesoddsof outperformance.
TaxRate
>20%
(6 out of 10 years)
Lowers risk of accounting misrepresentation. Tax payment is one indicator of
clean accounting.
(EPS) GrowthVariability <100% over 5 Years Indicator of stability of earnings in business. Helps to size positions.
Gross NPA <2.5% Lower Gross NPA reflects the quality of underwriting of the business
ROA
1.25%
(6 out of 10 years)
ROA reflectsthe underlying profitability of the business adjusting for leverage.

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Tactical Portfolio – A non exhaustive list !!!
 Most of the portfolio (~80-85%) generally meet our investment criteria.
 However there couldbe instances where the stock do not fit into all the investment criteria andyet we have
the same in the portfolio.PromoterIntegrity is a non negotiable evenin these cases
 Indicative rationale forholdingstocks not qualifyingframework*
 The sharp spurt in growthtrajectory for the company is expectedandvaluationdoes not seemto have
material downside althoughthe stock currently do not satisfy other investment criteria's
 Companies benefittingfromIndustry consolidation
 Management change candidates whichfulfil other investment criteria's
 The stock whichis held for momentumbut is otherwise excessively valued. These are investee
companies whichhave beensignificantly re-ratedsince we brought them.
* ReferAppendix 1for more details

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Investment Process: Risk management and sell discipline
Constant assessment
of stock performance
v/s fundamental
changes
Company continues to
demonstrate fundamental
strength
Buy andhold and addon
price weakness
Company is falteringon
fundamental dynamics
Exit if the reasonis
structural
Exit if another company
offeringa better risk
reward
Strategy for contra
cyclical investments
Exercise patienceto see
the business cycle turning
around
Constant monitoringof performance and alternative opportunities
Source: Internal.

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What makes us “SELL”
Company which
was held for
momentum is sold
as momentum fades
An opportunity
offersbetter risk
reward vs the
portfolio stocks
Unnecessary
Large
unrelated
diversification
Original thesis for
buying the stock
proves
to be incorrect
Corporate
Governance Issues
surfaces
Significant
deterioration in
competitive or
regulatory
landscape

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PERFORMANCE

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Performance Scorecard
Source: MFIE; Returns are as on Sep 30, 2021 for DSP Focus Fund, Growth option Regular plan. Rolling Frequency is Daily. Standard Deviation of DSP Focus Fund and S&P BSE 200 TRI is calculated
on the basis of daily returns. Click here for performance of scheme in SEBI prescribed format and of other schemes managed by same Fund Managers. Pastperformance may or may not sustain
in future and should not be used as a basis for comparison with other investments. The figure mentioned for performance of the index should not construe as returns/performance of the
Scheme. It is not possible to invest directly in an index.
ROLLINGRETURNS
POINT-TO-POINT RETURNS
DSP Focus Fund S&P BSE 200 TRI DSP Focus Fund S&P BSE 200 TRI DSP Focus Fund S&P BSE 200 TRI
Average Annual Returns 12.2 13.0 11.6 12.1 12.4 12.5
Median Annual Returns 7.4 10.4 11.2 12.8 12.6 14.0
Minimum Annual Returns -29.8 -32.6 -7.4 -5.4 -1.9 -0.7
Maximum Annual Returns 84.4 100.1 28.5 25.3 22.1 20.8
Returns / Risk 0.71 0.77 0.67 0.72 0.72 0.74
1 YEAR ROLLING RETURNS (%) 3 YEARS ROLLING RETURNS(%) 5 YEARS ROLLING RETURNS (%)
TIME PERIOD DSP Focus Fund S&P BSE 200 TRI ALPHA
1 year 48.1 61.2 -13.1
3 years 17.6 19.5 -2.0
5 years 12.1 16.9 -4.7
Since Inception 11.6 13.4 -1.8

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Performance Scorecard
AVERAGE ROLLINGRETURNS
RETURN PER UNIT OF RISK
12.2
11.6
12.4
13.0
12.1
12.5
8.0
9.0
10.0
11.0
12.0
13.0
14.0
1 yr RR 3 yr RR 5 yr RR
DSP Focus Fund S&P BSE 200 TRI
0.71
0.67
0.72
0.77
0.72
0.74
0.62
0.64
0.66
0.68
0.70
0.72
0.74
0.76
0.78
1 yr RR 3 yr RR 5 yr RR
DSP Focus Fund S&P BSE 200 TRI
Source: MFIE; Returns are as on Sep 30, 2021 forDSP Focus Fund, Growth Option RegularPlan. Rolling Frequency is Daily. Standard Deviation of DSP Focus Fund and S&P BSE 200 TRI is
calculated on the basis of daily returns. Click here for performance od scheme in SEBI prescribed format and of other schemes managed by same Fund Managers. Past performance
may or may not sustain in future and should not be used as a basis for comparison with other investments. The figure mentioned for performance of the index should not construe as
returns/performance of the Scheme. It is not possible to invest directly in an index.

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PORTFOLIO

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Sectoral changes since Vinit’s fund takeover
Significant change in exposure in IT, Materials, Healthcare, Industrial and Energy since June’20
Source: Morningstar; Portfolio data as on Sep 30, 2021. The sector(s)/stock(s)/issuer(s) mentioned in this note do not constitute any recommendation of the same and the Fund may or
may not have any future position in these sector(s)/stock(s)/issuer.
Sector % as on June 2020 % as on Sep 2021 (Significant) Change
Financials 31.0% 32.7%
Materials 19.1% 13.7%
Consumer Discretionary 11.9% 10.6%
InformationTechnology 8.0% 14.5%
HealthCare 4.4% 10.1%
Consumer Staples 6.2% 8.0%
CommunicationServices 4.2% -
Industrials 6.6% 4.9%
Utilities 0.0% 2.5%
Energy 4.7% -

24
Portfolio Positioning as on 30 Sep 2021
Source: Internal, Bloomberg. The sector(s)/stock(s)/issuer(s) mentioned in this note do not constitute any recommendation of the same and the Fund may or may not have
any future position in these sector(s)/stock(s)/issuer.
Sector
DSP Focus Fund
(% weight)
BSE 200 Index
(% weight)
Active Weight
HealthCare 10% 5% 5%
Materials 14% 9% 4%
Consumer Discretionary 11% 7% 3%
InformationTechnology 15% 14% 1%
Financials 33% 32% 0%
Consumer Staples 8% 8% 0%
Real Estate 0% 1% -1%
Industrials 5% 6% -1%
Utilities 2% 4% -1%
CommunicationServices 0% 3% -3%
Energy 0% 10% -10%
• Defensive positioningreflectedthroughHealthCare andIT overweight andhigher exposure to
insurance names within financials
• Financials are recoveringwell since the pandemic. The holdings in this sectorare innames with
high provisioningbuffers,adequate capital andlow stress
• Our preference for stress free balance sheets andlower cyclicality reflects inouroverweight in
cement (included in materials sector)whichis proxy of cyclical recovery andpotential growthin
infrastructure capex

25
Portfolio Parameters - Overall
Source: Internal , Refinitive Eikon ; Data as on 30 Sep 2021. Above future estimations can vary with actual results and should not be consider as performance/ return of
scheme.
Parameter DSP Focus Fund BSE 200 Index
ROE FY22 E 19.2% 14.3%
PE F22 29.0 25.8
PE FY 23 23.9 21.5
PB FY22 5.6 3.7
EPS GrowthFY21 to FY23 E 20.3% 28.2%
Fund has higher ROE than the Index in spite of significantly lower exposure to cyclical
stocks like Metals where the recovery in earnings is expected to be strong

26
Portfolio Parameters – Quality
Source: Internal, Refinitive Eikon; Data as on 30 Sep 2021.
Fund has significantly better ROE profile compared to Benchmark
Only <3% Weight in Companies with ROE < 13% in Fund vs >30% for the benchmark
0.%
10.%
20.%
30.%
40.%
50.%
60.%
70.%
> 25% 20%-25% 13%-20% <13%
%
of
portfolio
ROEbuckets
Return on Equity (ROE) bucketing
BSE 200
Fund

27
Additions (Apr to Sep, 2021)
Source: Internal. The sector(s)/stock(s)/issuer(s) mentioned inthis presentation do not constitute any research report/recommendation of the s ame andmay or may not have any future positionin these
sector(s)/stock(s)/issuer(s). Data as on30 Sep 2021
(Non-exhaustive list)
STOCK BUSINESS
SBI Life Insurance
Strong distribution reach, growth potential from high margin products such
as annuities, return of premium, credit life remains high – SBI Life Insurance
currently has the lowest non-ULIP share amongst the peers. The
management has guided 100 -150 bps margins expansion over the next 2-3
years along with 15%+ EV growth. The valuation is the cheapest amongst
the peers at 2.7x Enterprise Value (EV) despite higher Return on Enterprise
Value (ROEV)and EV growthentailing forsome potential rerating
CholamandalamInvestment
and Finance Company(Chola)
Chola is in the process of building a diversified NBFC under Mr Vellayan
(Chairman), had consistent track record of delivering high teens ROE and is
well placed for cyclical recovery in Auto. Valuation appear reasonable for
return and growthprofile. Potential investment intechis anoptionality

28
Exits (Apr to Sep, 2021)
Source: Internal. The sector(s)/stock(s)/issuer(s) mentioned inthis presentation do not constitute any research report/recommendation of the s ame andmay or may not have any future positionin these
sector(s)/stock(s)/issuer(s). Data as on30 Sep 2021
(Non-exhaustive list)
STOCK BUSINESS
Bajaj Finance
Bajaj Finance is in the process of rolling out the digital foray to plug in the
gaps in the omni channel fintech model. The company is possibly the best
bet in India’s fintech space with deep understanding in multiple category
lending, efficient collection model and retail liability franchise. The progress
on digital foray is tracking well although it is marginally delayed however the
valuations at 7x P/B is already discounting high growth trajectory through the
customer acquisition and engagement that these digital initiatives will create.
Given the excessive valuationwe switchedto cheaper proxies suchas Chola.
Titan
Titanis strongjewellery franchise andis consistently gainingmarket share
fromthe unorganizedsector. However,we felt the stock’s valuationwere
factoringinlot of the growthalready. The stock has continuedto rally post
our exit and the multiples have only re-ratedfurther. We like the business.
Our primary concernis valuations,evenona relative basis to its ownhistory
and market.

29
Top Holdings as on Sep 30, 2021
Source: Internal. Past performance may or may not sustain in future and should not be used as a basis for comparisonwith other investments. The sector(s)/stock(s)/issuer(s) mentioned in this
presentation do not constitute any researchreport/recommendation ofthe same and may or may not have any future position in these sector(s)/stock(s)/issuer(s).
APPLYINGTHE INVESTMENTFRAMEWORK IN STOCK SELECTION& PORTFOLIO CONSTRUCTION
Investment framework is the key driver for buildinghigh conviction positions
Positive/Improving trajectory Negative/Declining trend Neutral/No Change
TOP 5 STOCKS
PORTFOLIO
WEIGHT(%)
COMMENTS BUSINESS MANAGEMENT VALUATION
ICICI Bank 9.9% B/S adequatecovered;
valuation isattractive
Turnaroundstory with
strongB/S driven by strong
CASA franchiseeand
adequateprovisioninglevel
Conservative InexpensiveValuation
Infosys 9.4%
Growth outlookisexpected
to remain healthywith
ramp up of largedeals
Execution muchbetter
under thenewmanagement
Stable& Conservative ExpensiveValuation
SBI Life
Insurance
8.2%
Relatively goodbranch
network and bestinclass
agency
Faster growth in nonpar
savingand Protection
businessto driveVNB
margins
Conservative
InexpensiveValuation
e
Ultratech
Cement
6.6%
Expectenhanced capacity
utilizationanddeleveraging
Acquisition
integrationandramp up
leadingto strongcashflows
and deleveraging.
Stable& Strong
execution
ExpensiveValuation
Tech Mahindra 5.2%
Pick up incommunication
segmentwhich hasbeen a
laggardwith 5Gdeal
momentumreviving
Turnaroundinthe
subsidiariesacquiredbefore
FY17.Acquisitionsdonepost
FY17 aretrackingat
company averagemargins
Turnaroundinthe
performancebeing
implemented through
NXT nowstrategy
InexpensiveValuation

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APPENDIX 1 – RATIONALE FOR HOLDING STOCKS NOT MEETING FRAMEWORK

31
Why ICICI Bank? (9.9% weight*)
Source: Company, Internal. *Data as on 30 Sep 2021
Turnaround idea with improving Balance Sheet quality, one of the lowest cost of
funds in the industry and improving returns
Ratios 2014 2015 2016 2017 2018 2019 2020 2021
NNPA (%) 1.0 1.6 3.0 5.4 5.4 2.3 1.5 1.1
RWA to assets (%) 84.0 84.0 85.0 84.0 72.0 71.0 69.0 71.5
Top 20 advances to Equity(%) 158 166 147 118 130 119 112
CET 1 ratio (%) 12.8 12.8 13.0 13.7 14.4 13.6 13.4 16.8
Retail loans% of total loans (%) 41.9 44.8 49.0 52.6 57.4 61.7 64.5 66.7
Share of top 20 depositors(%) 7.3 6.4 7.4 7.0 6.2 5.7 4.9
Dailyaverage CASA ratio (%) 39.4 39.5 40.7 43.7 45.6 44.6 42.3 42.5
Reportedcost of funds (%) 6.2 6.2 5.9 5.5 5.0 5.1 5.1 4.3
Core PPoP(%) 2.5 2.6 2.5 2.2 2.1 2.3 2.5 2.7
Core RoA (%) 1.5 1.6 1.2 1.1 0.7 0.2 1.0 1.4
Core RoE (%) 14.7 14.7 11.3 10.3 6.2 2.4 7.0 12.2

32
Why Cipla? (4.7% weight*)
• Stable brandedgenericmarkets of India
and South Africa account forhalf of
Ciplasales/profits.Ciplaistop 3 players
in these marketsmaking it a natural
partner for innovatorsto out-license
products to leverage itsvast frontend.
• Ciplais top 3 globallyinterms of
manufacturingcapacity in inhalers.
Respiratorygenericsinthe developed
markets isnow openingup and we think
Ciplais well placedto capitalize on this
opportunityover the next5 years.
• Despite havingcomparable scale and
capabilitiesinmanufacturing,Cipla’sUS
genericsbase at $600m issmallerthan
peers($800m-$1.2bn). We believe Cipla
will gainshare in US genericsdrivenby
newlaunches incomplex generics.
• Ciplahas historicallybeenahigh cash
flowgeneratingbusinessbuthigh capex
has dentedfree cash flowgeneration.
Over the last fewyears capex has been
coming down aidinghigherfree cash
flows.
Source: Company, Internal . * Data as on 30 Sep 2021
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
(50,000)
-
50,000
1,00,000
1,50,000
2,00,000
2,50,000
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Cashflow generation
Sales OCF FCF OCF as a % of sales FCF as a % of sales
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sale split
India South Africa US Others

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APPENDIX 2 – RISING MARKET SHARE OF PORTFOLIO COMPANIES

34
Market Share Gains for Portfolio Companies
Source: Gartner, TRAI, NASSCOM, RBI, Company, Internal
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
Share in GlobalIT Spends
INFOSYS
0.0%
2.0%
4.0%
6.0%
8.0%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Deposit Market Share
ICICI Bank
5.0%
5.4%
5.8%
6.2%
6.6%
7.0%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Loan Market Share
ICICI Bank
5%
10%
15%
20%
25%
AnnualPremiumEquivalent Market Share
SBI Life

35
Product Labeling Details & Disclaimer
In this document DSP Investment Managers Private Limited (the AMC) has usedinformation that is publiclyavailable, including information developed in-house.Information
gathered and used in this material is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any
information. The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research
recommendation. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”,
“believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results maydiffer materially from those suggested by the
forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and
political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation,
deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The sector(s)/stock(s)/issuer(s) mentioned in this
document presentation do not constitute any research report/recommendation of the same and the scheme may or may not have any future position in these
sector(s)/stock(s)/issuer(s). The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. There is no
assurance of any returns/potential/capital protection/capital guarantee to the investors in this Scheme. Past performance may or may not sustain in future and should
not be used as a basis for comparison with other investments. This document indicates the investment strategy/approach/framework currently followed by the Scheme
and the same may change in future depending on market conditions and other factors. All figures and other data given in this document are as on 30 Sep 2021 (unless
otherwise specified) and the same may or may not be relevant in future and the same should not be considered as solicitation/ recommendation/guarantee of future
investments by the DSP Mutual Fund or the AMC or its affiliates. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal
and other financial implication or consequence of subscribing to the units of schemes of DSP Mutual Fund. For complete details on investment objective, investment
strategy, asset allocation, scheme specific risk factors please refer the scheme information document and keyinformation memorandum of the scheme, which are available
at AMCand registrar offices andinvestor service centres/AMCwebsite-www.dspim.com. For IndexDisclaimer click Here
Mutual Fund investmentsare subject to market risks, read all scheme related documents carefully.
Scheme Product Suitability
Riskometer
DSP Focus Fund Benchmark - S&P BSE 200 TRI
DSP FocusFund
(An open endedequity
schemeinvesting in
maximum30 stocks.The
Schemeshall focus on
multi cap stocks)
The Open ended equity schemeissuitablefor
investorswho areseeking*
Long-termcapital growth with exposure
limited to a maximumof 30 stocksfroma
multi cap investmentuniverse
Investmentin equity and equity-related
securitiesto forma concentrated portfolio
*Investors should consult their financial advisers ifin doubt about whether the Scheme is suitable for them.

DSP Focus Fund

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