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Release
August 2026 · rev 1
Opportunities PMS · Published
As at 31 Aug 2026 · IST₹ · ₹ cr · BSE 500 TRI
Present
Internal working platform. Published figures are extracted from the August 2026 source package and reviewed; reference prices and fundamentals are unlicensed working data, not for redistribution. Past performance is not indicative of future returns.
Portfolio & Performance/Allocations
02 /Portfolio · allocations

Why we own what we own.

Every sector in the August 2026 factsheet with its weight and the four reasons behind the allocation, condensed from the approved sector chapters. Click a name to open its dossier.

Sector table August 2026
Weights sheet 31 Jul 2026
Reasons chapters to 31 Aug 2026
The shape of the book
Named sectors
79.3%
10 lines
Other sectors
12.3%
undisclosed small caps
Cash
8.4%
dry powder

Financials (banks, NBFCs, insurance) and consumption (FMCG, retail, autos, media, aviation) carry the book; the capex complex is held only through stock-specific names. The house is sector-agnostic and stock-selective: each line below is an argument, not an index weight.

Stance by area · playbook, August 2026
  • OVERWEIGHTBanking & financials
  • OVERWEIGHTConsumption
  • OVERWEIGHTHealthcare & pharma
  • TACTICALIT services (~2–3% in Aug note)
  • CAUTIOUS / AVOIDDefence, railways, capex, renewables
  • UNDERWEIGHT BROADLYSmall & mid caps
Read the market view →
BankingOVERWEIGHT
The cheapest way to own nominal GDP, chosen bank by bank
22.1%
  1. 1All four earnings cycles are turning together: deposits +15.4% (a decade high), credit +18.3%, margins troughed in Jun-26 after 125 bp of cuts, net NPAs at 20-year lows (0.3–0.5%).
  2. 2Bank Nifty trades below its long-run P/B for a mechanical reason: FPIs sold ₹1.8 lakh cr of Indian equity in FY26 and six of their ten largest holdings are banks.
  3. 3Our residual-income model says the large private banks earn 14.5–17.5% on normalised capital against a 12.25–13% cost of equity and compound book at 12–16% a year.
  4. 4Selection, not the index: ICICI for certainty of compounding, Axis for improving ROE, SBI for a 1.1% ROA at 1.5x fair P/B; HDFC Bank and Kotak (40% of the index) avoided at 4–5x book.
HeldICICI Bank 7.0%Axis Bank 6.0%State Bank of India 4.0%IDFC First Bank 2.3%HDFC Bank 1.8%
FMCGOVERWEIGHT
The main stake, for the first time in ten years
8.8%
  1. 1A cash transfer the size of the IT salary bill has already happened: state welfare ≈ ₹6 lakh cr a year (1.7% of GDP), women-centric schemes alone ₹1.7 lakh cr across 120 mn beneficiaries.
  2. 2GST 2.0 repriced ~60% of the FMCG basket to 5%, plus 125 bp of rate cuts and a normal monsoon; ex-cigarette staples volumes are at a two-year high.
  3. 3Rural volumes have out-grown urban for seven straight quarters and we expect broad double-digit growth this year.
  4. 42021 in reverse: the money has moved but nobody is looking. HUL, Britannia, Trent and Varun have de-rated to 40–50x from 55–70x; we are buying the operating leverage of a volume recovery.
HeldHindustan Unilever 3.3%Trent 3.1%Britannia Industries 2.0%Varun Beverages 1.0%
Info TechTACTICAL
Mostly not IT services
8%
  1. 1Only Infosys (0.7%) is the tactical IT-services trade: a mature services company has a floor near 12x and no case above 20x because AI removes the people, not the work. Held at 2–3% of the strategy, to be exited.
  2. 2Kaynes is electronics manufacturing: India's EMS market went from $10–12 bn (FY20) to $40–45 bn (FY25) and could exceed $150 bn by FY30, with the country's first private OSAT and HDI-PCB plants ramping.
  3. 3Paytm is a payments and lending platform in the world's largest real-time payment system (UPI 24.5 bn transactions a month, +22%) whose regulator-inflicted crisis has passed.
  4. 4Indegene is a life-sciences commercialisation outsourcer riding the same $350 bn patent cliff as our pharma names; its AI exposure is a tailwind, not a threat.
HeldKaynes Technology India 2.4%One 97 Communications 2.2%Indegene 1.2%Infosys 0.7%
InsuranceOVERWEIGHT
The largest share of every rupee of household savings, at the cheapest valuation
7.5%
  1. 1Life NBP +15.7% in FY26; Aug-26 individual APE +22% at SBI Life and +17% at HDFC Life; the GST cut to zero on life and health is a structural demand tailwind.
  2. 2Life insurers trade at 1.6–1.9x FY27E embedded value for 15–20% VNB growth, a lower multiple of a capital-light annuity than most banks command.
  3. 3Non-life premiums +9.3% to ₹3.36 lakh cr with standalone health +19%; the motor third-party market (₹60–70k cr) will return through tariff hikes (IRDAI proposed ~18%) and long-term mandatory cover.
  4. 4ICICI Lombard bought at a two-year low after the Supreme Court ruling; Max Financial at ~1.9x EV with the Axis rename and 26% VNB growth; SBI Life for the cheapest bancassurance engine.
HeldICICI Lombard General Insurance 3.1%Max Financial Services 2.9%SBI Life Insurance Company 1.1%
HealthCareOVERWEIGHT
Every headwind of 2016–17 has reversed
7.3%
  1. 1The four de-rating forces have inverted: PBM pricing power is tied up in litigation, Indian companies now do complex chemistry, peptides and biosimilars, and the FDA has lost ~20% of its staff.
  2. 2A $350 bn patent cliff: $142 bn of annual innovator sales lose exclusivity by 2030, more than 60% biologics; a $3–5 bn capture opportunity for Indian firms.
  3. 3GLP-1 is real: semaglutide's Indian patent expired 20-Mar-26 and Glenmark, DRL, Sun and Zydus launched at 50–70% discounts the next day; the domestic market grows 10–12% led by chronic therapies.
  4. 4Expressed through archetypes, not one bet: a Turnaround (Glenmark), two Value names (Aurobindo, Granules), a Cyclical (Dr Reddy's at the lenalidomide trough) and a Core retailer (MedPlus). Hospitals at 60–80x are respected, not owned.
HeldGlenmark Pharmaceuticals 2.4%Aurobindo Pharma 1.6%Medplus Health Services 0.8%Granules India 0.7%Dr Reddy's Laboratories 0.7%
NBFCOVERWEIGHT
The two franchises whose ROE justifies a premium to banks
7.1%
  1. 1NBFC credit grows 15–17% against 10–12% for banks; AUM has doubled to ₹48 lakh cr since 2021 and is heading for ₹70 lakh cr by FY27.
  2. 2The regulatory cycle turned: RBI reversed the Nov-23 risk weights on bank lending to NBFCs, revised co-lending and cut repo 125 bp, so the raw material (funding) is getting cheaper.
  3. 3Foreign strategic capital arrived: MUFG's ~$4.4 bn for 20% of Shriram Finance marks what a scaled, well-run lender is worth to a global bank.
  4. 4A 20–30% ROE lender can carry 5.8x book (Bajaj Finance, Core); a 12% ROE bank cannot carry 2x (Kotak, not owned). Shriram is the used-CV leader at 1.6x book.
HeldBajaj Finance 3.5%Shriram Finance 3.5%
Building MaterialsOVERWEIGHT
Consolidation, not capex faith
6.9%
  1. 1Industry structure, not order books: UltraTech (200+ mtpa) and Adani (~109 mtpa) control ~309 mtpa against 126 mtpa in 2016, turning a fragmented industry into a duopoly-led one that can hold prices.
  2. 2Demand is solid: production +9.8% to 481 mt in CY2025 and ICRA expects 6–7% growth in FY27 on housing, roads and irrigation.
  3. 3We are not underwriting a price boom (all-India ₹349/bag, flat) but that the two leaders take share and keep costs falling; UltraTech's EBITDA/t of ₹1,214 vs Ambuja's ₹931 is the moat in one number.
  4. 4Dalmia's south and east capacity is worth far more than 30x depressed earnings implies; UltraTech is the price-setter with net debt falling from FY27.
HeldUltraTech Cement 2.8%Dalmia Bharat 2.4%
IndustrialsCAUTIOUS · stock-specific
Stock-specific ideas inside a sector we are cautious on
4.2%
  1. 1The house is cautious on the capex complex (defence, railways, capital goods, renewables) because valuations already discount years of order-book growth and retail ownership is crowded. Caution is not a ban.
  2. 2L&T is the one large-cap engineering franchise whose multiple (28x FY28E) is below its growth: order book ₹7.8 lakh cr (+27%), inflow guidance 10–12%, treated by the market as a cyclical.
  3. 3Astral (CPVC leader, sold off with PVC prices), Indo-MIM (world's largest metal-injection-moulder, new listing) and Dilip Buildcon (20x FY28E, balance sheet repaired) are bought on their own numbers.
  4. 4The backdrop helps at the margin: central capex ₹12.2 lakh cr (+11%) with 28% spent early, capital-goods inflows +15–20%, and capacity utilisation at 74–78%, the level at which private machinery capex historically starts.
HeldLarsen & Toubro 2.4%Astral 1.0%Indo-MIM 0.8%Dilip Buildcon 0.6%
TelecomTURNAROUND
A three-player market that finally prices for return on capital
3.8%
  1. 1Two players (Jio and Airtel) hold ~80% of revenue; a decade of capital destruction has ended in pricing discipline, and Vodafone Idea's first positive net adds since the merger stabilise the third player.
  2. 2Airtel's ARPU of ₹264 (+5.6% YoY) is the industry's highest and ₹48 above Jio, with the best postpaid adds in 13 quarters.
  3. 3The next tariff hike (up to 15%, expected H2FY27 or early 2027) flows almost entirely to EBITDA and free cash flow because the 5G capex cycle has peaked.
  4. 4Classified Turnaround because the thesis is ROE normalising (21% FY27E to 23%) as deleveraging, Africa (+20% constant currency) and the Indus consolidation convert EBITDA into equity value faster than earnings growth alone.
HeldBharti Airtel 4.0%
AutomobileVALUE + CYCLICALS
A Value leader and two cyclical component makers
3.6%
  1. 1FY26 was a record: 2.83 cr wholesale units (+10.4%), scooters +18.5%, CVs +12.6%, exports +24%, on the back of the GST cuts and 125 bp of repo cuts; FADA retail +18% in Aug-26.
  2. 2Exports are the structural shift: Bajaj Auto ships about half its two- and three-wheelers abroad and Indian component makers are winning global platforms as the world de-risks from China.
  3. 3The powertrain mix is changing faster than expected (CNG + hybrid + EV overtook petrol in PV retail in Aug-26), which rewards the broadest technology portfolio, not the incumbents.
  4. 4One Value large cap (Bajaj Auto: 30% ROE, net cash, 34x FY27E, Chetak now number two in EV scooters) and two small-cap Cyclicals bought at earnings troughs (RK Forgings after a one-off write-off, Varroc after restructuring).
HeldRamkrishna Forgings 2.1%Bajaj Auto 1.6%Varroc Engineering 0.8%
Other sectors (9)SATELLITE
Small satellite exposures inside 'Others'
12.3%
  1. 1Real estate (0.6%) is the most rate-sensitive sector in the book: launches and registrations in the top-7 cities are at decade highs but the 10-year G-Sec at 6.7–6.8% has kept a lid on developer multiples, which is where a Value position makes sense.
  2. 2Textiles (0.5%) is a small satellite on the US-tariff and China-plus-one reshuffle in apparel sourcing.
  3. 3Both are sized under 1% because the theses are stock-specific, not sector calls; no large-cap developer (DLF, Lodha, Godrej at 40–60x on pre-sales narratives) is owned.
  4. 4The named securities are not disclosed in the PMS file; explain the role, not the name, and commit to a follow-up from the portfolio team if asked.
HeldInterGlobe Aviation 2.7%Vedanta Aluminium Metal 2.2%PVR Inox 1.5%Avenue Supermarts 1.3%Campus Activewear 1.2%Chambal Fertilisers 0.9%Archean Chemical Industries 0.6%

Reasons condensed from "Why We Own What We Own, July 2026 sheet (Buoyant Capital), with datapoints refreshed to the August 2026 Perspectives note". Weights from the active factsheet sector table; names from the disclosed weights sheet. What we deliberately do not own →

Related

Deeper reading

  • Sectors we avoid → what we deliberately do not own in each sector, and why.
  • Construction → sector drill-down to names, core/satellite, cap mix, concentration.
  • Macro → book → how each sector weight behaves against rates, oil, INR and the market.
  • Company Atlas → the one-pager behind every name.
NoteHow to use this page with clients. Lead with the weight and the headline, give the four reasons, then name the holdings. The exclusions page answers the inevitable “why not Kotak / TCS / Reliance / defence”. Reasons are frozen to the approved chapters; datapoints inside them carry their own dates.