Q3 2024 Earnings Conference Call and Webcast Slides
DSP Healthcare Fund
1. [Title to come]
[Sub-Title to come]
Strictly for Intended Recipients Only
Date
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
| People | Processes | Performance |
April 2021
DSP Healthcare Fund
2. 2
What is DSP Healthcare Fund?
HEALTHCARE
FUND
SECTORAL FUND
Key focus on the
Healthcare space with
investments in Indian
and Overseas
companies
INVESTMENT
STRATEGY
Invests in companies
across the Healthcare
eco-system including
pharmaceuticals,
hospitals, diagnostics,
medical devices etc.
INVESTMENT
FRAMEWORK
Selection of stocks
generally on basis of
quality of management,
change in ROCE,
operation leverage and
stage of business cycle.
DSP Healthcare fund takes exposure to domestic + global healthcare stocks
3. 3
Why invest in the DSP Healthcare Fund?
EXPOSURE TO
COMPANIES
WHICH CAPTURE
OUR HEALTHCARE
SPENDS+ EXPORT
OPPORTUNITIES
Some of the drivers like
rising income levels, ageing
population, increasing
healthcare awareness and
government policies, make
healthcare sector one of the
fast growing sector in India
Looks to invest in companies
which may benefit from pick
up in healthcare expenditure
in India
Low cost manufacturing
capability and good
chemistry skills allow Indian
companies to be globally
competitive.
Fund may invest up to 25%
in Overseas Equities. This
enables diversification and
ability to tap unexplored
opportunities
SECULAR GROWTH DRIVERS IN
INDIA
BENEFIT FROM RISE IN
HEALTHCARE EXPENDITURE
BENEFIT FROM GLOBAL
OPPORTUNITIES
Spending on healthcare is non discretionary
* Source - Industry Report. Click Here
EXPOSURE TO GLOBAL HEALTHCARE
4. [Title to come]
[Sub-Title to come]
Strictly for Intended Recipients Only
Date
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
Healthcare landscape & drivers of growth for
the sector
6. 6
Drivers of growth for the healthcare industry in India & globally
Indian
healthcare
industry
Healthcare
spending –
Public &
Private
Export
opportunitie
s especially
to China
Global
healthcare
industry
Global
Competitive
advantage
(in terms of cost
and innovation)
Incremental
growth in
Healthcare
Delivery
High
penetration in
Medical
devices
Sector Universe – Diagnostics,
Hospitals, Health Insurance, Domestic
Focused Companies (API, Generics)
Sector Universe – E.g. CRAMS, Export
oriented companies (API, Generics)
Sector Universe – Contract research &
Manufacturing Service (CRAMS), Export
oriented companies (API, Generics)
Sector Universe – Diagnostics,
Hospitals, Health Insurance
Sector Universe – Medical
Devices
7. 1.29%
2.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2020 2025
7
Drivers of growth - Rise in healthcare spending
Health care expenditures by Government as a % of
GDP expected to increase from 1.3% to 2.5% by 2025
Future growth of healthcare expenditure may be led by the government and insurance
companies - biggest growth driver
Contributions as a % of Total Health Expenditure(THE)
32%
58.7%
9.3%
0% 10% 20% 30% 40% 50% 60% 70%
Government
Household
Others (incl of health insurance
companies)
Click Here for data source
Source: National Health Accounts 2016-2017 – Click Here
8. 8
Drivers of growth – Increasing export opportunities
11%
87%
89%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China India
Domestic Pharma Mkt Share MNC Pharma Mkt Share
China has opened doors for India Pharma
companies to capture MNC Market share
Indian Generics have increased market share in US oral solids
market, similar opportunity now in non oral solid market
NEXT BIG TRIGGER – In the coming years, India’s generic companies may look to increase
their exports share in non oral solids market in US and in China
Source: Nomura Source: Industry Report for Year 2019
0%
10%
20%
30%
40%
50%
60%
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
India's share - oral solids
India's share - non-oral solids
Non Oral solids as a% of total US generics market
9. [Title to come]
[Sub-Title to come]
Strictly for Intended Recipients Only
Date
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
Deep diving into key trends in healthcare sector
over last decade
10. 72%
10%
-9%
7%
18%
26%
-10%
19%
10%
15%
-26%
78%
102%
11%
7%
18%
25%
71%
-14%
1%
-14%
10%
-16%
78%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21
Nifty 50 Index BSE Healthcare Index
In line with
market
10
Key Trends over last decade for Healthcare sector
Pharma led in FY09-15, lagged in FY16-19 and led in FY 20-21 through the pandemic
BSE Healthcare index (BSE HC)
outperformed Nifty 50 Index
Source: MFIE. Indices are managed and used for illustrative purposes only and are not intended to be indicative of any fund’s performance. It is not possible to invest directly in an index |
Past performance may or may not be sustained in the future and the same should not be used as a basis for comparison with other investments.
Story reversed from FY16
to FY19
12. 12
What went wrong for the healthcare sector between FY15-19
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
3,000
3,500
4,000
4,500
5,000
5,500
6,000
FY15 FY16 FY17 FY18 FY19
YoY
growth
(%)
USD
mn
Exports to US YoY growth
FY15-19 CAGR: 8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
200
400
600
800
1,000
1,200
1,400
FY15 FY16 FY17 FY18 FY19
YoY
growth
(%)
INR
bn
IPM market size YoY growth
FY15-19 CAGR: 9%
8
10
12
14
16
18
20
22
24
26
1-yr
fwd
RoE
(%)
BSE Healthcare BSE Sensex
2
3
4
5
6
7
Pice/Book
BSE Healthcare BSE Sensex
Source: Bloomberg
Exports to US Slowed down IPM Growth slowed down
Translating to sub-optimal return ratios ….thus led to a sector de-rating
13. 13
What happened since FY20
Source: Bloomberg, #1 – aggregate data Sun Pharma, Dr Reddy, Lupin, Cipla, Cadila, Aurobindo, Glenmark, IPCA, Torrent Pharma, Divi’s Labs, Alkem
Capex coming down, adding free cash flows (#1) R&D spends also coming down (#1)
Translating to stabilsing return ratios ….thus led to a sector re-rating
8
9
10
11
12
13
14
15
16
Jan-2018
Mar-2018
May-2018
Jul-2018
Sep-2018
Nov-2018
Jan-2019
Mar-2019
May-2019
Jul-2019
Sep-2019
Nov-2019
Jan-2020
Mar-2020
May-2020
Jul-2020
Sep-2020
Nov-2020
Jan-2021
Mar-2021
BSE Healthcare BSE Sensex
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
R&D as a % of sales
0
50,000
1,00,000
1,50,000
2,00,000
2,50,000
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Capex (Rs m)
-
1.0
2.0
3.0
4.0
5.0
6.0
Dec-2019
Jan-2020
Feb-2020
Mar-2020
Apr-2020
May-2020
Jun-2020
Jul-2020
Aug-2020
Sep-2020
Oct-2020
Nov-2020
Dec-2020
Jan-2021
Feb-2021
Mar-2021
Apr-2021
BSE Healthcare price to book BSE Sensex Price to Book
14. [Title to come]
[Sub-Title to come]
Strictly for Intended Recipients Only
Date
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
Why are we recommending HEALTHCARE as a
category?
15. 15
Where we are – Business Cycle vs Valuation Matrix
Low Valuation
and Top of the
Business Cycle
High Valuation
and Top of the
Business Cycle
Low Valuation
and Bottom of
the Business
Cycle
High Valuation
and Bottom of
the Business
Cycle
Business Cycle (BC)
Valuation (V)
Healthcare sector is currently positioned in middle of Low & high Valuation and at Bottom
of the Business Cycle
Source: Internal
16. 16
Business Cycle – US business stabilizing
US Sales impact margins, now recovering (#2)
ROIC recovering (#2)
Indian pharma market growing well
US Sales recovery in FY20 (#2)
Source: Bloomberg, #2 – aggregate data for Sun Pharma, Dr Reddy, Lupin, Cipla, Cadila, Aurobindo, Glenmark, IPCA, Torrent Pharma, Divi’s Labs, Alkem
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
RoIC
Asset Turns RoIC EBIT margins
20%
22%
24%
26%
28%
30%
30%
32%
34%
36%
38%
40%
42%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
US % of total sales
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
17. 17
Overview on Global Medical Devices Industry
Medical devices industry is expected to grow at 5% to 6% in next 3-4 years
with US controlling more than 40% market share
2025
2019
$426
BN
$613
BN
CAGR (2019 – 2025): 5.40%
Growth projection for Global Medical Devices
Growth drivers
for Medical
Devices
Industry
High focus on
novel
technology
(reduces cost)
Increasing
chronic disease
and ageing
population
(large opportunity
size)
Growing
adoption of
home care
devices
(increases
convenience for
end user)
What could drive the growth
US contributes
40% of the
global market
Source: Industry Report (Click Here)
18. -
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1,000.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
100 100
18
Portfolio Diversification through US and Indian Equities
Source: Bloomberg | Correlation is calculated on the basis of weekly returns as on May 2021 | Data as on 30 Apr 2021 Indices are managed and used for illustrative purposes only and
are not intended to be indicative of any fund’s performance. It is not possible to invest directly in an index | Past performance may or may not be sustained in the future and the same
should not be used as a basis for comparison with other investments.
Correlation* between BSE Healthcare index
and US Medical Equipment Index is <0.20
S&P BSE
Healthcare TRI
Index (INR)
US Medical
Equipment Index
(USD)
Returns in
CAGR (%)
20% 16%
Because of low correlation with Indian healthcare sector, US Medical devices
stocks adds to portfolio diversification
19. 19
Healthcare sector v/s Broader market, similar returns, less earning volatility
BSE Healthcare Index earnings growth has been higher and more consistent v/s BSE Sensex.
Source: MFIE. Indices are managed and used for illustrative purposes only and are not intended to be indicative of any fund’s performance. It is not possible to invest directly in an index |
Past performance may or may not be sustained in the future and the same should not be used as a basis for comparison with other investments.
50
150
250
350
450
550
650
750
850
950
1,050
Jan-2004
Jan-2005
Jan-2006
Jan-2007
Jan-2008
Feb-2009
Feb-2010
Feb-2011
Feb-2012
Feb-2013
Mar-2014
Mar-2015
Mar-2016
Mar-2017
Mar-2018
Apr-2019
Apr-2020
Apr-2021
S&P Bse Healthcare
S&P Bse Sensex
100
200
300
400
500
600
700
800
CY20
CY19
CY18
CY17
CY16
CY15
CY14
CY13
CY12
CY11
CY10
CY09
CY08
CY07
CY06
S&P BSE Sensex PAT - 2006 rebased to 100
BSE HC Index PAT - 2006 rebased to 100
Earnings growth Price growth
20. 20
Portfolio Construct: Many sub-segments with different drivers may provide
diversification and hence lower risk
Diversification can lead to returns with lesser volatility
Domestic
Focused
Companies
Diagnostic
Laboratories
Hospitals
Health
Insurance
Contract
Research and
Manufacturing
Export
Focused
Pharma
companies
Evolving
Generic
companies
US Healthcare
Unorganized accounts for 45% of
market,. Can be huge beneficiary from
unorganized to organized market shift
Capex cycle abating may lead
to better RoCE
Can be huge scope for private players
because of increasing awareness
Larger pharma companies are likely to
be interested in asset light model and
hence prone to increasing outsourcing
New launches, market share gains for
existing products and consolidation
can help to drive exports to US, Europe
Medical device segment opportunities are
less in India. In US, the sector has shown
EBITDA Growth of >9% in last 10 years.
Can be huge opportunity for
growth available for companies
that are focused on right
approach of capital allocation
and business model
Consistent earnings, high
RoCE and cash flow
generation
Growth driven by domestic factors
Growth driven by global +domestic factors
Source – DSP Internal. Data as on 30 Apr 2021
21. 21
In a nutshell, we recommend DSP Healthcare Fund because…..
Lesser volatile returns
Sector generally provides returns with lesser volatility over longer term (exceptions being
weak US generics cycle in 2015-19 and broad based market rally pre GFC (2005-07)
Diverse segments
Healthcare sector has many sub-segments with different drivers and DSP Healthcare
fund have a good mix of all the sub-segments
International
Exposure
~ 10% exposure to International companies to diversify the risk of weak cycle in US
generics having high contribution the BSE healthcare index
High ROCE and Cash
flow business
~ 30% exposure to stable/defensive business with high ROCE and Cash flow
generation ability like India formulations, Pathology etc.
Experienced fund
management team
41 years of cumulative experience in fund management with robust investment
framework
Benefitting from
economy opening up
~ 30% exposure to businesses like Indian Hospitals, US medical equipment and Indian
acute care formulations which are likely to benefit from an opening up of the economic
activity
Fund may provide diversified exposure to stable & non cyclical healthcare industry including
global companies
Source – DSP Internal. Data as on 30 Apr 2021
22. 22
Risk Factors
INCREASED
COMPETITION
EXCHANGE RATE
REGULATORY
HEADWINDS
Lucrative return profile of the sector has
attracted new participants which created
pressure on margins
Risks have led to volatility in both businesses and stock prices
Political populism has led to quarterly
volatility in margins and top line growth
Profitability of large companies
which are export oriented, got
impacted because of currency
fluctuations.
24. Improvement in business and ROE may lead to a sector re-rating
24
Valuation – On the basis of Enterprise Value to EBITDA*
Healthcare is trading much below 10 year average of 37% premium to Sensex
Source: Bloomberg | Data as on 30 Apr 2021 | * EBITDA – Earnings before Interest, Taxation, Depreciation and Amortization | Indices are managed and used for illustrative purposes
only and are not intended to be indicative of any fund’s performance. It is not possible to invest directly in an index | Past performance may or may not be sustained in the future
and the same should not be used as a basis for comparison with other investments.
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
Dec-2009
Apr-2010
Aug-2010
Dec-2010
Apr-2011
Aug-2011
Dec-2011
Apr-2012
Aug-2012
Dec-2012
Apr-2013
Aug-2013
Dec-2013
Apr-2014
Aug-2014
Dec-2014
Apr-2015
Aug-2015
Dec-2015
Apr-2016
Aug-2016
Dec-2016
Apr-2017
Aug-2017
Dec-2017
Apr-2018
Aug-2018
Dec-2018
Apr-2019
Aug-2019
Dec-2019
Apr-2020
Aug-2020
Dec-2020
Apr-2021
BSE Healthcare EV/EBITDA BSE Sensex EV/EBITDA Premium of BSE Healthcare over Sensex (RHS) Average Premium
25. Improvement in business and ROE may lead to a sector re-rating
25
Valuation – On the basis of Price to Book Value
On Price to book basis, Healthcare sector is trading at 52% premium to Sensex above a 10 year average of 40%
Source: Bloomberg | Data as on 30 Apr 2021| Indices are managed and used for illustrative purposes only and are not intended to be indicative of any fund’s performance. It is not
possible to invest directly in an index | Past performance may or may not be sustained in the future and the same should not be used as a basis for comparison with other
investments.
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Dec-2009
Apr-2010
Aug-2010
Dec-2010
Apr-2011
Aug-2011
Dec-2011
Apr-2012
Aug-2012
Dec-2012
Apr-2013
Aug-2013
Dec-2013
Apr-2014
Aug-2014
Dec-2014
Apr-2015
Aug-2015
Dec-2015
Apr-2016
Aug-2016
Dec-2016
Apr-2017
Aug-2017
Dec-2017
Apr-2018
Aug-2018
Dec-2018
Apr-2019
Aug-2019
Dec-2019
Apr-2020
Aug-2020
Dec-2020
Apr-2021
BSE Healthcare price to book BSE Sensex Price to Book Premium of BSE Healthcare over Sensex (RHS) Average Premium
26. [Title to come]
[Sub-Title to come]
Strictly for Intended Recipients Only
Date
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
Investment team & process
27. 27
Fund Managers
Chirag Dagli: Fund Manager (Overall 20+ years experience)
(Currently Managing the fund since Dec 2020)
Chirag has a total work experience of Over 20 years and has been covering healthcare for
more than 15 years. He joined DSP Investment Managers in November 2020 as Vice
President in Equity Team. Prior to joining DSP, Chirag spent 8 years with HDFC asset
Management covering healthcare, specialty chemicals and agrochemicals. He has also
worked with Aviva life Insurance, ICICI Securities, Infinity.com Financial Services Limited,
Global Markets - Deutsche Equities India Private Limited, Citigroup Global Markets India
Private Limited and ICICI Securities. Chirag is a Chartered Accountant (ICAI India) and also
holds a Bachelor of Commerce Degree).
Vinit Sambre: Fund Manager & Head of Equities (Overall 21+ years experience)
(Currently Managing the fund since Nov 2018)
Vinit Sambre heads the equity team at DSP and has been with the firm since July 2007, when
he joined as a Portfolio Analyst in the firm’s Portfolio Management Services (PMS) division,
which managed discretionary accounts and provided advisory services to institutional
clients. Vinit is also an erstwhile Pharma sector analyst. Previously, he was with DSP Merrill
Lynch as a part of its Global Private Client business and also spent time as Equity Strategist.
Vinit is a Chartered Accountant from Institute of Chartered Accountant of India.
In Addition, Jay Kothari is also a dedicated fund manager for overseas investments. Currently managing the fund since Nov 2018
28. 28
Investment process – Research & Stock selection
HEALTHCARE ORIENTED
COMPANIES FROM
INDIA AND OVERSEAS
Bottom – up analysis of
company attractiveness on
growth, management quality,
ROE and valuation dynamics
Domestic factors
e.g. drug price regulation,
government policies, etc.
Global factors
e.g. US FDA, US mkt evolution,
China opportunities, forex etc.
Create a
whitelist of
stocks
Assessment
of returns
expectations
Assessment
of
drawdowns
and liquidity
FINAL LIST
OF
STOCKS
STOCK SELECTION PORTFOLIO CONSTRUCTION
Indian companies
(min. 65%)
Overseas companies
(max 25%)
RESEARCH FRAMEWORK
30. 30
Performance Dashboard
205
167
60
80
100
120
140
160
180
200
220
Value
of
Rs.100
invested
Since inception performance
DSP Healthcare Fund S&P BSE HC TRI
Particulars 1 year 2 year Since inception
DSP Healthcare Fund 62.0% 40.9% 34.7%
S&P BSE Healthcare TRI 54.3% 29.0% 23.6%
Fund outperformed benchmark since inception; vital role of active management
Source: MFIE; Data as on April 30,2021. . Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. Click here for
performance of scheme in SEBI prescribed format and of other schemes managed by same Fund Managers. S&P BSE Healthcare TRI is benchmark for DSP Healthcare fund. Regular plan –
Growth option is considered for performance
31. Theme/ Business Segments
Weight
(%)
Export Formulations 28.45
India Formulations 22.58
Hospitals 12.51
US Medical Equipment 9.93
Generic API (Exports and Domestic) 9.41
Contract research and manufacturing 4.84
Diagnostics 3.06
Health Insurance 2.76
31
Portfolio details as on 30 April 2021
Top 10 holdings
Stock Name % weight
Sun Pharmaceuticals Industries Ltd. 8.77
Cipla Ltd. 8.69
Lupin Ltd. 7.23
Dr Reddys Laboratories Ltd. 6.99
IPCA Laboratories Ltd. 6.72
Divis Laboratories Ltd. 5.52
Apollo Hospitals Enterprise Ltd. 5.44
Max Healthcare Institute Ltd 4.90
Procter & Gamble Health Ltd. 4.39
Intuitive Surgical Inc 3.23
Geographical Allocation
Geography % weight
India 83.61
US 9.93
Cash & Cash Equivalent 6.46
Market Capitalisation
Largecap,
47.1%
Midap,
28.4%
Smallcap,
10.5%
Business wise exposure (#)
# Based on proportion of revenues for FY20 for companies
The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and may or may not have any
future position in these sector(s)/stock(s)/issuer(s).
32. 32
Top Holdings as on April 30, 2021
Source: Internal. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. The sector(s)/stock(s)/issuer(s)
mentioned in this presentation do not constitute any research report/recommendation of the same and may or may not have any future position in these
sector(s)/stock(s)/issuer(s).
TOP 5 STOCKS
PORTFOLIO
WEIGHT (%)
THESIS GROWTH DRIVERS VALUATION SUPPORT
Sun Pharma 8.77%
Significant investment made over
last 5 years in building its high
gestation / more sustainable
specialty business in the developed
markets.
Expect ESG scores to improve as
governance issues are behind
Scale up in key specialty products
like Illumya / Cequa and
consequent operating leverage
Complex generic launches in US
which have hitherto faltered due
to the FDA issues at its largest
plant in Halol
India business contributes >50% of
profits and provides downside
support. Valuations on earnings post
losses on US Specialty are in line with
history implying negligible value being
given to this effort
Cipla 8.69%
Top 5 player in branded generic
markets like India and South Africa
with strong doctor equity
Decently placed to tap the upcoming
opportunities in respiratory in US
Launch of high value complex
generics including respiratory and
Injectibles in US
Continued scale up of market
share in India/South Africa
Including upside from option value of
large high value launches in US, stock
is trading below its historical trading
range. With much stronger cash flow
generation v/s the past we expect a
re-rating
Lupin 7.23%
Upfront fixed costs in R&D and
specialty in US now in base. Stable
overheads gong forward.
Operating leverage may drive margin
improvement
Stable growth can be expected in
India /South Africa
Launch of high value pipeline like
respiratory generics, bio-similars
will augment margins
Valuations are lower than historic
range due to poor acquisition track
record.
Scale up in US sales and
commensurate earnings growth will
re-rate
Dr. Reddys
Laboratories
6.99%
Shift in focus from R&D to
commerciality leading to higher RoE
Higher focus on sustainable branded
generics
Growth revival can be witnessed
in branded generics (India)
US growth driven by new launches
China a new growth frontier
Including upside from option value of
high value launches in US and Covid
vaccine, stock is trading above its
historical trading range
IPCA Laboratories 6.72%
Lowest cost generic manufacturer in
its chosen products
Excellent execution with stable top
management
Growth in branded generics like
India and other emerging markets
Capacity expansion in APIs
Resolution of FDA issues could
allow tapping US generic market
Current multiples at higher end of its
trading band but are justified given
its industry leading RoE despite
having no sales in US.
APPLYING THE INVESTMENT FRAMEWORK IN STOCK SELECTION & PORTFOLIO CONSTRUCTION
33. 33
Disclaimer
Scheme Product Suitability
Riskometer
DSP Healthcare Fund
(An open ended equity scheme investing in
healthcare and pharmaceutical sector)
This open ended equity Scheme is suitable for investor who
are seeking*
• Long term capital growth
• Investment in equity and equity related Securities of
healthcare and pharmaceutical companies
* Investors should consult their financial advisers if in doubt
about whether the Scheme is suitable for them.
In this document DSP Investment Managers Private Limited (the AMC) has used information that is publicly available, 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 may differ 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 Apr 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 key information memorandum of the scheme, which are
available at AMC and registrar offices and investor service centres/AMC website- www.dspim.com. For Index Disclaimer click Here
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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Strictly for Intended Recipients Only
Date
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
| People | Processes | Performance |
April 2021
DSP Healthcare Fund](https://image.slidesharecdn.com/dsphealthcarefund-211228080046/85/dsp-healthcare-fund-1-320.jpg)
