Mohit has taken over management of PGIM India’s equity PMS products about 4 months ago.
He describes his investment style as GARP oriented but with equal emphasis on growth and value ends of the market.
His approach towards high PE disruptor stocks is nuanced – he doesn’t mind paying for growth so long as cash flows are clearly visible. Paying up for growth in cash burn stage is not something that fits into his GARP thought process.
Mohit inherited the 3 equity PMS products – Phoenix, India Equity Portfolio and Core Equity – when they were going through a rough patch on performance.
While maintaining the overall equity philosophy, he has strengthened stock selection filters and brought in portfolio construction guardrails that seek to limit downsides while preserving alpha potential of the portfolios.
He looks closely at consistency of return on incremental cash flows to get a better sense on trajectory of earnings growth and also to identify potential accounting jugglery early on.
His enhanced stock selection framework goes by the acronym PIS – prudence, integrity and scalability.
Portfolio construction will be less skewed in favour of particular sectors and stock concentration will also be controlled to some extent. While maintaining a focused portfolio of 25 stocks, individual stock weights may not go above 6-8%.
Phoenix is a small cap portfolio which also includes turnaround plays across cap sizes. Core Equity is a multicap strategy with 50%large cap, 25% midcap and 25% small cap. Contra bets will be a feature of this fund. India Equity Portfolio is a thematic multicap strategy which invests across 4 megatrends/themes.
Mohit has identified turnaround stocks among small banks, MFIs, chemicals.
His contra calls are in the IT services, real estate and capital goods spaces.
He sees IT services, consumer durables and commercial vehicles as outperformers in 2026.
Mohit acknowledges that PMS funds as a category are seeing negative newsflow due to recent underperformance, but he says that the product – which is meant only for HNIs – inherently brings in higher risk capital from experienced investors who have the necessary risk appetite to ride out volatility in the quest of higher returns from smaller companies.