Update
Usually, we do not comment on individual stocks that may or may not be part of our portfolios. However, given the questions and concerns on social media over the last 24 hours, we felt it is important to share clarity with our investors.
We have always been selective in participating in IPOs - and that discipline will remain unchanged.
Having said this, we invest when we have conviction across four dimensions:
- Strong and scalable business
- Trustworthy promoters
- Demonstrated execution
- Valuations
It is rare to find all four perfectly aligned at the same time. In the case of Lenskart, we like the first three very much. On valuations, we believe businesses associated with retail, e-commerce are trading expensive, including this specific business.
Further, we do not usually take cash calls in most of our funds. In this specific case, we have trimmed a slower-growing, similarly-expensive position to make room for this investment. When valuations are stretched, we size our positions responsibly.
In short: there is nothing new in our approach while evaluating Lenskart.
We will share more detailed thoughts in our annual letter.
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Note: Any stock or sector references should not be considered as recommendations to buy, sell, or hold any security, nor as an indication of future performance. The AMC, its affiliates, or schemes may or may not have any future positions in these securities. There is no assurance of any returns/capital protection/capital guarantee in DSP schemes.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.