Arpit Dream Portfolio 2019


(arpitjain512) #1

Hello All,

I am planning to create a Portfolio in 2019 for next 5 years with 15-20 stocks and minimum 5% allocation to each business. I will diversify it across Large, Mid and Small cap. Also I want to diversify it among different sectors to minimize the risk. Max allocation to single stock will be 10% and to a particular sector will be 20%.

Criteria for selection of stocks :

  1. Management Quality is first
  2. Financials has to be good and improving
  3. Valuation will depend on the business and growth opportunities. So it will be a mix of under/fair/over valued stocks in Portfolio

Planning to buy on dips and not in one Go.

Below is my current Watchlist from whom I want to create my Portfolio of max 20 stocks.
My Watchlist filtered Sectorwise :

  1. Technology :
  • TCS/LTI/Sonata
  • LTTS/Tata Elxsi
  1. Pharma
  • Aurobindo/Natco/Cadilla
  • Abbott India/Merck/Caplin Point
  • Biocon/Syngene/Suven
  1. Banks/Financials/Insurance
  • Yes Bank/Rbl Bank/DCB Bank
  • Bajaj Finance/L&T Finance/Gruh Finance/PEL
  • HDFC AMC/Edelweiss
  • HDFC Life
  1. Auto/Ancillary/Tyres
  • Maruti/Bajaj Auto/Ashok Leyland
  • Minda Industries/Sundaram Fastener/Endurance Tech
  • Balkrishna Ind
  1. FMCG/Retail
  • Godrej CP/ITC
  • Dmart/Zydus Wellness/Jubilant Foodworks
  • Titan/VIP/Relaxo
  1. Cables/Electric
  • Havells
  • Sterlite Tech
  1. Chemicals/Machinery
  • Atul Ltd/Aarti Ind/Vinati Organics
  • GNFC/Excel Ind/Nocil
  • GMM Pfaulder/Salasar Techno
  1. Plastic
  • Astral Poly/Supreme Ind

Awaiting inputs from fellow Investors and ValuePickers to provide their views on this strategy and Top 20 from the watchlist above. From the above I do hold few stocks currently. But am ready to modify the Portfolio accordingly. Looking forward to have a great discussion with you all in my Investment Journey.

Happy New Year in Advance!!!


(arpitjain512) #3

Thanks for the response, however I didn’t understand clearly. You want me to put up rationale for Individual stock selection basis or something else ?


(S_Banerjee) #5

Good to see your watchlist. I have few from above list. Personally none from Pharma and none from typical IT company stocks because of too much external factors involved like USFDA and US policy including Dollar up downs.

Would like to know what you are holding right now.


(arpitjain512) #6

Hi,
Continuing to my first post below are the stocks am holding right now and a single point Rational for buying these business :

  1. LTI : Holding From IPO : Mangement and future growth in IT
  2. LTTS : Market Leader and positive on IoT, Autonomous Vehicles etc
  3. Bajaj Finance : Market Leader and Retail Finance is less affected due to small size loan
  4. L&T Finance : Banking on management capabilities and NBFC sector growth
  5. Natco Pharma : Good Financials, Management, and in complex products. Looks undervalued
  6. Suven Lifescience : Betting on CRAMS business and Global Presence.
  7. Rbl Bank : Recently listed is growing rapidly. Potential to be next HDFC.
  8. Yes Bank : Entered recently on downfall, Excellent financials and growth seen in Past.
  9. PEL : Bet on Ajay Piramal who has created wealth over last few years for its shareholders
  10. Minda Ind : Sector Leader in Ancillary and an Established brand and great client List
  11. Balkrishna Ind : Best In Tyres off the highway, Exports,good growth seen in past.
  12. Sterlite Tech : Leader and with 5G coming in Optical fibre demand to remain high.
  13. HDFC Life Ins : Management says it all and Insurance penetration is less but likely to increase in future. HDFC remains the choice after LIC

Requesting feedback from @hitesh2710 @desaidhwanil @basumallick and other members of the VP board .


(Hitesh Patel) #7

@arpitjain512

The list includes good companies and may of them have dominant place in their sector. Personally I would be a bit wary in names like Yes Bank. (though its a personal opinion only).

Maybe you could add a couple of good small cap names to the list which could provide the extra delta to the portfolio whenever the small-midcap space starts getting market favour back. As of now they suffer from market apathy and these are the best times to buy out of favour good companies.


(chets) #8

Superb picks… we have a lot of stocks in common! What’s your take on balkrishna fir the short term?


(riddhi) #10

Just a thought, may want to have a look at eclerx and page(though) expensive.


(arpitjain512) #11

Hello Hiesh Ji,

Thanks for your views.
Planning to enter in MNC companies ie GMM Pfaudler and Orient Refractories.
Let me know your views on these, they look Longetm compounding machines


(arpitjain512) #12

Thanks I will check these.