Renowned author Gurcharan Das unveils Emkay Investment Manager’s book on ‘E-Qual’ framework
by Shrutee K/DNS
Mumbai, 20th April 2021: Emkay Investment Managers Ltd (EIML) has released a book on E-Qual, its proprietary framework institutionalized/formulated by the firm to evaluate the corporate governance aspect of management quality. The book was unveiled by Mr. Gurcharan Das, renowned author, an advocate of governance and former CEO of Procter & Gamble India.
The book explains the conceptual analogies of the E-Qual framework in detail. E-Qual is a time-tested model applied to the wealth-creation strategies of EIML. While valuing a company, the risk-adjusted returns are best captured with the E-Qual model, which helps calculate qualitative risk objectively that is not captured in P&L or balance-sheet like management integrity & capability, distribution of shareholder wealth like their dividend policy, investor communication & liquidity. Cumulatively, 70% weightage is assigned to the 2 core qualitative risk parameters of Management Integrity and Management Capability.
The trend of ESG compliant investment is picking up pace lately in India, but at EIML – the prime focus for many years has been to review the management quality, the prevalent corporate governance practice at the companies. The focus on management quality has ensured a track record of zero blowouts over the past 10 years with all investments. Management integrity and capability are two non-financial but qualitative metrics that can provide a sense of future returns. High standards of corporate governance are critical for long-term and sustainable growth. It not only benefits the company but all stakeholders involved. At EIML, the belief is that wealth creation is not possible without quality management, and high standards of governance. Transparency and sound business ethics are hallmarks of strong corporate governance, and ensure business risk mitigation.
Unveiling the book, Mr. Gurcharan Das, Management Consultant and Author said, “I have been a client of Emkay Investment Managers for over ten years and have seen them implement sound processes and practices for stock selection, that help preserve investors’ wealth. E-Qual is a strong governance framework which has ensured that low quality stocks do not enter a client’s portfolio. I am sure the book will help investors understand the importance of governance in stock selection.
Speaking on the book launch, Mr. Krishna Kumar Karwa – Managing Director, Emkay Global Financial Services said, “This is a first of its kind book that emphasizes the importance of quality management and corporate governance in a given company. Quality management with a proven track record ensures long term wealth creation for all stakeholders. The E-Qual framework has helped us achieve the goal of capital preservation and wealth creation for our clients and through this book we wish to spread the message of the importance of governance, far and wide”
About Emkay Investment Managers Limited:Emkay Investment Managers Ltd. (EIML) is a wholly-owned subsidiary of Emkay Global Financial Services Limited and is a SEBI registered Portfolio Manager since 2003. EIML offers different types of portfolio management services, catering to individual risk appetites, goals, and investment preferences of individuals. The team that comprises professional fund managers, research and wealth advisors, and associates is focused on offering the clients a superior research-based portfolio that effectively manages risks and optimizes returns. EIML offers highly customized & personalized advisory services to large HNIs / NRIs & Corporate Investors. Emkay’s Portfolio Management Services’ expertise ranges across the breadth of the Indian equities market, from blue-chip large-cap funds and well-performing mid-cap funds to emerging small caps. All of EMIL’s PMS strategies have consistently out-performed the index over the years, thereby building substantial wealth for its clients. http://www.emkayim.com/
About Gurcharan Das: Mr. Gurcharan Das is a management consultant and the author of India Unbound, an international bestseller, published in 17 languages and filmed by the BBC. India Unbound narrated the story of India's economic rise from Independence to the global information age. A graduate of Harvard University with Honors in Phi Beta Kappa, he also attended Harvard Business School (AMP). Mr. Das was formerly CEO of Procter & Gamble India and MD, Procter & Gamble Worldwide (Strategic Planning). He is an advocate of high standards of corporate governance and corporate social responsibility at Indian companies.