I entered market in 2016 officially. So it has been 3 long years. I wanted to share my portfolio and get critical comments on it. The idea is to improve it with advice and make it better. I hope the discussion will help other new investors.
I joined forum in 2017 and made some contribution. Forum helped me understand few basic things about investing and companies. Below is my portfolio allocation and rationale
Note : Allocation is as of this writing. I do add some stocks with time in SIP manner based on their performance and my conviction. I will update the post with time as well.
- Asian Paints (Paints sector) - 12% allocation
Largest Paints Company in India. The sector have few players and sector has given positive returns. Still many houses in India are left without Paints. So there is still scope for penetration. Company is also expanding in neighboring countries. Management is good.
- Akzo Nobel (Paints sector) - 12% allocation
It is a take over candidate. Leader in Paints world wide but slowly coming down the ladder. PPG take over or Asian paints take over of Indian arm will shoot it up. Though I am planning to cut the exposure to 5%. Consistent dividend payer.
3.CARE Ratings (Ratings sector) - 20%
2nd largest in India. Globally Ratings is dominated by 3 players (2 of them listed in India). It has expanded to neighboring countries of India.Sector has not performed in last 3 years but it will turn around.Crisil has 8% stake in it. Global players may take it over which will benefit investors. Ratings is evergreen sector as well. Best dividend payer in the Sector.
- HDFC AMC (Financials) - 10%
Mutual Fund penetration is less in India. So with time it will grow and HDFC being leader in the sector will get benefit. Proven management. AMC business seems to be good dividend payers as well. (This year it will be more than 1% it seems)
- Pidlite (Diversified or Chemicals)- 10%
Monopoly business in Adhesives and sealants. Proven management. It has lot more products apart from M Seal and Fevikol or Fevi Kwik.
- Sasken (IT) - 6%
Company was able to shift from Communication to new business verticals showing Management capability. Consistent dividend payer. Now tapping on IOT and Automation wagon. It has 252 patents as well. Playing for IOT and Automation theme.
- India Nippon Electricals (Auto Ancillary) - 5%
JV of TVS and Mahle. Proven management. Playing for Electrical vehicles as well as Auto Growth story. MAHLE has electrical vehicle technique which can be passed on to it. INEL has also shown commitment for EV.
- Divis Lab (Pharma) - 5%
It is into API formulation. Stable Company.
- Multibase India (Plastics) - 2%
Subsidiary of Dow Chemicals one of the largest Chemical Companies. Makes product for different industries. Will get benefited with time as parent passes on more products to it.
- Kajaria Ceramics (Tiles) - 3%
Lots of Construction and Infrastructure development in India will trigger this stock. It is market leader in the sector and will get benefited.
- Johnsons Control (AC) - 2%
Johnsons Control is one of the largest Companies in World. It mainly deals with sub set of products from the Parent (mainly AC). Company has huge potential to grow in India.
I have small positions in below stocks mainly 1% and below 2%.
- Heidelberg Cement - Cement sector.
- Apcotex Industries - Rubber
- Avanti Feeds - Aquaculture
- Balmer lawrie - Logistics
- Bharat Seats - Auto Ancillary
- Jayant Agro - Chemicals
- Vedanta - Mining and Metals