Drona Capital

Drona Capital is an investment advisory firm which seeks long-term capital growth for its clients by pursuing time tested value-investing strategy. It strives to provide a sustainable and adequate return on investment at minimal risk. The firm seeks to look for exceptional businesses that are undervalued and invest in them long-term. We value our investors’ needs of wealth preservation and therefore our objective is to ‘provide a sustainable and adequate return on investment at minimal risk’. Investment Strategy Invest in attractive businesses We take a fundamental approach of qualifying exceptional business based on fundamental analysis. Thorough research is carried out using various sources like the company reports and industry research. Quantitative Analysis Look for companies which have had strong historical financial performance in key return and liquidity ratios such as return on invested capital and free cash flow. Quantitative Analysis This involves detailed study of the industry, the company and its competition, employing the Porter 5-Forces Framework to assess the industry attractiveness. Buy at deep discounts Price v/s Value Approach: Invest only when the price of the stock is significantly lower than the intrinsic value of the business. Minimal Risk Sustainable return is possible only if the risk is reduced. Investment in a company is made only when these risks are significantly low. Long-term investments The market price of a great business with consistent earning is likely to reflect the earning over a long period. Therefore if we find a good business, we stay invested long term. Investment Approach Take advantage of market inefficiencies from time to time We have a ‘Contrarian’ approach and bad news might be good news for us. The market at times over reacts to a ‘bad news’. Focus on small and midcaps Companies with market capitalizations of less than $10 billion have a higher probability of being neglected, or escaping the radar of large mutual funds. Invest in American Companies The United States economy is the largest in the world, and the country has the highest GDP globally (approximately a fifth of global GDP). The US is home to 29.6 million small businesses, 30% of the world's millionaires, 40% of the world's billionaires, as well as 139 of the world's 500 largest companies.