OmniScience Capital – Scientific Investing Framework well defined and explained by Dr Vikas Gupta, CEO and Chief Investment Strategist.

1. Investment Universe
• Indian stock market has ~5,000 listed companies.
• Around 1,500 companies have a market cap above ₹1,000 crore.
• Focus: Companies above ₹1,000 crore → better transparency, disclosures, national/global presence, and established businesses.
• Avoid companies below this threshold due to weak governance and low transparency.

2. Core Philosophy
• Inspired by Warren Buffett:
o Rule #1: Don’t lose capital.
o Rule #2: Never forget Rule #1.
• Market naturally generates returns in the long run (e.g., Sensex from 100 in 1979 to ~85,000 today).
• Key is capital protection first, returns will follow.
• Risk is not volatility, but permanent loss of capital.

3. Multi-Step Screening Process
OmniScience uses a 4-layer filter to select stocks:
Step 1 – Remove Capital Destroyers
• Exclude:
o Loss-making companies with weak business fundamentals.
o High-debt companies (Debt/Equity > 0.5).
o Low interest coverage ratio (<4).
• These companies risk default → equity can go to zero.

Step 2 – Remove Capital Eroders
• Companies without competitive advantage (no pricing or bargaining power).
• Identified by low Return on Equity (ROE black-box AI trading.

8. Lessons from Experience
• Avoiding high-debt, poor governance companies has saved from major losses.
• One rare failure was due to hidden debt (disclosed later).
• Reinforces importance of strict filters.

9. Three Golden Rules for New Investors
1. Don’t invest in what you don’t understand. If unsure, stick to ETFs/SIPs.
2. Study before acting. Learn key ratios (Debt/Equity, ROE, P/E, Price-to-Book, EV/EBITDA, etc.).
3. Diversify & be patient. Review quarterly, don’t panic on volatility, focus on intrinsic value.

In essence:
OmniScience’s Scientific Investing = Capital Protection + Growth Visibility + Valuation Discipline.

This creates a framework where low risk leads to high sustainable returns over time.

Do follow this page for insights on OmniScience’s Scientific Investing Framework and its disciplined, research-driven approach to investing.

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