Alchemy High Growth

What Is Alchemy High Growth PMS?

Alchemy High Growth PMS is an actively managed, multi-cap/flexicap equity Portfolio Management Service from Alchemy Capital Management. Launched on 8 May 2002, the strategy follows a Growth at a Reasonable Price (GARP) philosophy, seeking long-term capital appreciation by identifying businesses with strong growth potential and valuations that the investment team considers reasonable.

The strategy invests across large-, mid- and small-cap companies and can allocate up to 100% to equities, with the cash portion potentially deployed in liquid funds or debt securities. Its portfolio is generally concentrated in up to 25 stocks, primarily selected from an investible universe built from approximately 500 companies.

Alchemy High Growth uses the S&P BSE 500 TRI as its benchmark and has an indicative investment horizon of 3–5 years. As of 30 June 2026, strategy AUM stood at ₹762.51 crore, while its since-inception annualised return was reported at 19.9%, compared with 16.3% for the benchmark. Past performance is market-linked and does not guarantee future results.

Abakkus Emerging Opportunities PMS: Key Facts at a Glance

Source: APMI and Alchemy Capital Management.

Alchemy High Growth PMS Investment Strategy: GARP Framework

Alchemy High Growth follows a Growth at a Reasonable Price philosophy. The basic idea is straightforward: growth can create significant value, but the price paid for that growth matters.

The strategy's investment approach is built around the view that India's economic expansion and entrepreneurial ecosystem can create opportunities in businesses capable of growing revenues, profits and capital efficiency over extended periods.

Rather than limiting the portfolio to a particular market-cap segment, the strategy can move across large-, mid- and small-cap companies. This gives the portfolio flexibility to identify businesses based on their underlying fundamentals rather than their market-cap classification.

The research framework looks for companies with characteristics such as:

• Large or expanding addressable markets
• Scalable business models
• Attractive growth prospects
• Strong cash-generation potential
• Healthy Return on Capital Employed (RoCE)
• Competitive advantages
• Sound corporate governance
• Capable management teams
• Reasonable valuation relative to business prospects

The approach combines top-down and bottom-up fundamental research. Macroeconomic and sector-level developments can help identify areas of opportunity, while company-level research determines whether an individual security qualifies for the investible universe.

The strategy does not attempt to eliminate equity-market risk. A GARP framework can still face valuation corrections, earnings disappointments, market-cap volatility and periods when growth stocks fall out of favour.

Alchemy High Growth PMS Investment Universe and Stock Selection Filters

Alchemy High Growth begins with a relevant universe of approximately 500 companies. Market capitalisation is one consideration, but it is not the only filter.

Companies are assessed using both quantitative and qualitative factors. Historical and prospective variables such as revenue growth, EBITDA growth, cash-flow conversion efficiency and core ROE form part of the fundamental evaluation.

The investment team also considers:

1. Governance standards – the quality and integrity of corporate governance.
2. Business attractiveness – the long-term potential of the underlying business.
3. Addressable market – whether the company has room to expand its opportunity.
4. Scalability – whether growth can translate into improving business economics.
5. Competitive position – the ability to compete and maintain an advantage.
6. Management quality – the capability of management to execute its strategy.
7. Capital efficiency – including the ability to generate attractive returns on capital.
8. Cash-flow conversion – whether reported business growth translates into cash generation.
9. Valuation – whether the market price provides a reasonable entry point.

This process reduces the initial relevant universe into a more focused investable universe from which the portfolio can be constructed.

How Does Alchemy High Growth Select and Value Stocks?

The strategy combines idea generation, research, valuation and portfolio review rather than relying on a single stock-selection metric.

1. Idea Generation

The investment team uses several sources to identify potential investment ideas, including:

• Universal Tracker
• Network inputs
• Independent channel checks
• Active Tracker

These sources can highlight businesses, sectors or developments that warrant deeper investigation.

2. Research and Analysis

Potential ideas undergo fundamental research. Historical performance and future business prospects are considered alongside revenue and EBITDA growth, cash-flow generation, capital efficiency, competitive position and management quality.

3. Investable Pool

Companies that meet the relevant qualitative and quantitative criteria can enter the investable pool. Governance and management capabilities remain important parts of this assessment.

4. Valuation

A strong business may not automatically represent an attractive investment if its market price already reflects optimistic expectations. Alchemy therefore uses valuation methods such as:

• P/E
• P/B
• EV/EBITDA
• Discounted Cash Flow (DCF)
• Other business-specific valuation parameters

The objective is to determine an appropriate valuation range before investing.

5. Portfolio Construction

The portfolio manager has discretion to construct the client portfolio from the investable universe. Position sizing can reflect conviction, valuation, business quality and portfolio-level considerations.

This is where research becomes portfolio construction inside a discretionary PMS strategy.

6. Review and Monitoring

Portfolio positions are reviewed continuously, while formal performance and positioning reviews are conducted at regular intervals.

7. Exit Strategy

Positions can be reconsidered when the investment thesis changes, valuation becomes unattractive, fundamentals deteriorate or the portfolio's risk-return profile changes.

Alchemy High Growth PMS Portfolio Construction and Risk Controls

Alchemy High Growth is a focused active equity PMS, with a typical portfolio generally consisting of up to 25 stocks across sectors. Its multi-cap structure allows exposure to large-, mid- and small-cap businesses.

The strategy can allocate up to 100% to equity. Any cash portion may be deployed in liquid funds or debt securities, subject to the strategy mandate.

Portfolio construction is discretionary. This means individual positions are not determined simply by market-cap weights. The portfolio manager can construct the portfolio from the investable universe based on the strategy's investment framework.

Risk controls operate at multiple levels:

• Sectoral limits are monitored according to the mandate.
• Individual stock limits are monitored.
• Ownership levels at the fund/strategy level are tracked.
• Operations teams raise flags when positions approach permissible maximum weights.
• Portfolio performance is reviewed against the benchmark.
• Portfolio positioning and contribution are assessed periodically.

The result is a concentrated portfolio where stock selection remains central to the investment outcome.

Alchemy High Growth Portfolio: Top Holdings and Sector Allocation

The supplied portfolio snapshot shows exposure across financials, industrials, real estate, healthcare, materials, information technology and consumer discretionary.

Sector Allocation

Source: Alchemy Capital Management.

Top Holdings

Source: Alchemy Capital Management.

Market-Cap Allocation

Source: Alchemy Capital Management.

Holdings, sector weights, market-cap exposure and cash levels can change as the portfolio manager responds to valuations, company fundamentals, market conditions and the strategy's investment framework. Individual client portfolios may also differ because of account size, cash flows and client-specific restrictions.

Alchemy High Growth PMS Performance: Returns and Benchmark

Alchemy High Growth has a long operating history dating back to 8 May 2002. As of 30 June 2026, the strategy had been operating for approximately 24.2 years.

The current performance reference reports returns post-fees and pre-taxes. Since inception, Alchemy High Growth delivered an annualised return of 19.9%, compared with 16.3% for the S&P BSE 500 TRI.

The strategy has also reported benchmark outperformance in more than 60% of calendar years. However, performance has not been uniform across market cycles. The strategy experienced weaker relative performance during the 2018–2022 period, followed by an improvement from 2023 onward.

Performance figures should be interpreted in the context of their stated methodology and period. Investor-level returns can differ because of investment dates, cash flows, fees, account restrictions and other portfolio-specific factors. Investors comparing CAGR, XIRR and TWRR should also understand how reporting methods affect return interpretation.

Alchemy High Growth PMS Fees, Minimum Investment and Exit Terms

The Alchemy PMS minimum investment is ₹50 lakh. The strategy carries a high-risk profile and is intended for investors who can accommodate equity-market volatility over a multi-year horizon.

The exact fee structure, performance-linked charges, hurdle rate, high-water mark, exit terms, brokerage, custody charges, taxes and withdrawal conditions are governed by the applicable client agreement and current fee schedule.

Source: Alchemy Capital Management.

Investors should refer to the latest official client agreement and fee schedule for the applicable commercial terms before making an investment decision.

Key Risks of Investing in Alchemy High Growth PMS

Alchemy High Growth is an equity PMS with a high-risk profile. Its concentrated, actively managed structure can create meaningful exposure to company-specific and market-wide movements.

Equity-Market Risk

Equity prices can fall because of changes in economic conditions, interest rates, earnings expectations, liquidity or investor sentiment. A multi-year investment horizon does not eliminate the possibility of losses.

Concentration Risk

A portfolio of up to 25 stocks can have greater exposure to individual companies than a broadly diversified index. A sharp decline in a major holding can materially affect portfolio performance.

Mid- and Small-Cap Risk

The strategy can invest meaningfully in mid- and small-cap companies. These securities can experience higher volatility and lower liquidity than larger companies.

Valuation Risk

The GARP framework seeks reasonable valuations, but market prices can remain expensive or decline even when the underlying company continues to grow.

Sector and Thematic Risk

Sector allocation can change as investment opportunities evolve. A sector that performs poorly can affect the portfolio when its allocation is meaningful.

Liquidity Risk

Some securities may not trade in sufficient volumes during stressed market conditions. Exiting a position at the desired price may therefore be difficult.

Execution and Business Risk

Companies can fail to deliver expected revenue growth, margins, cash flows or returns on capital. Management decisions, competition and regulatory changes can also affect outcomes.

Manager and Process Risk

The strategy depends on the quality of research, portfolio construction, valuation assessment and investment decisions. Errors in these areas can affect performance.

Regulatory and Tax Risk

Changes in securities regulations, taxation, market rules or PMS-related requirements may affect investment costs or outcomes.

Who Should Consider Alchemy High Growth PMS?

Alchemy High Growth PMS may be considered by eligible investors who:

• Can meet the ₹50 lakh minimum investment
• Have a relatively long investment horizon
• Can tolerate high equity-market risk
• Can withstand periods of portfolio drawdown
• Understand the risks associated with concentrated multi-cap investing
• Are comfortable with market-linked returns
• Can accept that actual portfolio performance may differ from benchmark performance

The strategy should be evaluated against an investor's own financial circumstances, risk capacity and investment objectives. The 3–5 year indicative horizon does not mean losses cannot occur during that period.

What to Expect from Alchemy High Growth PMS Across Market Cycles

Alchemy High Growth is not designed to deliver identical returns in every market environment. Its performance can vary depending on the relative performance of its selected companies, market-cap segments, sectors and valuation levels.

The strategy has experienced periods of weaker relative performance, particularly during 2018–2022, followed by improved performance from 2023 onward. Investors should therefore expect periods of underperformance as well as outperformance.

Because the portfolio can hold up to 25 stocks, individual company developments can have a noticeable effect on results. Market-cap exposure, sector allocation and portfolio positioning can also change over time.

Investors should assess whether this strategy fits their risk profile and investment horizon before investing.

How AltPort Helps Investors Access Alchemy High Growth PMS

AltPort acts as a distributor/facilitator for investment products and can provide product information, relevant documents, performance information and application-related assistance for Alchemy High Growth PMS.

Alchemy Capital Management remains responsible for managing the PMS portfolio and making investment decisions under the strategy mandate. AltPort does not manage the securities within the Alchemy High Growth portfolio.

Investors should review the latest official strategy documents, risk disclosures, fee schedule and applicable agreements before investing. Investors can also compare PMS with mutual funds and AIFs before selecting the most suitable investment structure.