Welcome to the June 2025 edition of our Monthly Newsletter by OmniVista!

We’re pleased to share a curated snapshot of the evolving market landscape, along with key updates on our portfolio performance and strategic insights.

In this edition, explore: key investment highlights from the June 2025

Investment Philosophy: “Not Stupid” > “Overly Smart”
Inspired by Charlie Munger, OmniScience advocates risk-averse, safety-first investing.

Focus on avoiding capital destroyers (overleveraged, consistently loss-making firms) rather than chasing speculative alpha.

Core strategy: Diversification + Risk-Aware Stock Selection + Valuation Discipline = Sustainable Alpha.

> > Macroeconomic Backdrop: Strong Fundamentals
India is riding on strong macro tailwinds:

Capital investment > ₹56 lakh crore over 5 years across roads, rail, defence, housing, and power.

Policy support via Make in India, PLI, Gati Shakti, and easing monetary policy (3 rate cuts, repo now at 5.5%).

Consumption boost: Lower taxes + rising disposable income.

PMI (Manufacturing: 58.2, Services: 58.7) shows robust activity; inflation is moderate (CPI: 3.16%).

>> Sector in Focus: Defence
Massive capex growth (expected 16–17% CAGR till 2035).

India’s defence budget may touch ₹30 lakh crore by 2035 (~3–4% of $10T GDP).

Omni’s thematic portfolio Omni Bharat Defence trading at P/E 32.4 is relatively expensive — be valuation-conscious.

> > Key Growth Vectors
Banking & Financial Services

Defence & Capital Goods

Power & Infrastructure

Railways & EPC (Engineering, Procurement, Construction)

Digital Transformation & Manufacturing

These are positioned at the intersection of macro growth and favourable valuations.

> > Omni Smallcases: Attractive Relative Valuations
Many Omni portfolios trade at single-digit to mid-teen P/Es, offering better valuation than broad benchmarks:

Omni Bank on Bharat: P/E 9.4

Omni Super Dividend: P/E 9.6, Div. Yield 3.5%

Omni Capital Enablers: P/E 9.8

Omni Flexicap Superstox: P/E 11.8

Omni AI-Tech Global: P/E 22.8 vs Nifty IT P/E 27.9

Contrast: Nifty Midcap P/E 32.8, Nifty Smallcap P/E 46.3, Nifty FMCG P/E 43.7

>> Market Performance Snapshot
Nifty 50: 11.1% (1Y return), Nifty Midcap 150: 10%, Smallcap 250: 8.4%

Mid and small caps outperform on a 5-year basis: 34.1% and 37.7% CAGR respectively

Key message: Don’t chase momentum — focus on intrinsic value.

>> Video of the Month: Building a Multibagger Portfolio
CEO Vikas Gupta explains the Scientific Investing Framework:

Focus on Capital Multipliers (high-quality, undervalued firms).

Avoid Capital Eroders and Imploders.

Watch the episode by Appreciate

>> In the News
Defence sector may continue its bull run, but investors should stay cautious on valuations.

Five sectors to watch for FY26 earnings growth: Banking, Defence, Capital Goods, Power, EPC.

Retail investors booking profits — the smart money may still be holding long-term.