Lakshmi Narayana Portfolio - Long Term


(Lakshmi Narayana) #1

Hi Folks,

Happy New year!!

I have been using VP forum since 2013 and started my investment journey in FY12.

And I would like to thank VP team for providing such a great platform to learn about stock markets and also for the in depth info/analysis on different companies.

sorry, if my rationale for investment info is not capturing the more details,but i’ll share my thought process if anyone is interested in any of my portfolio stocks.

Currently am not looking for any changes to the portfolio but i would like to keep the max size of stock to 10-15% of PF and if anything breaches beyond that i’ll trim my positions based on the stock valuation and the available opportunities in the market.

As am a long term investor and would like to hold stocks for 5-10 years if underlying business is good with strong moat at a reasonable valuations.

For generating the extra alpha to PF, i take some contrain positions with PF position size of less than 2-3% and would sell once it reaches the peak value.

I would like to be more happy by taking your valuable suggestions and feedback!!

2017 Exits

Eicher Motors ~10X
Amara Raja ~ 4X
Finolex Cables ~ 2.5X
Torrent Pharma - 10% CAGR
Pidilite - 3X
JB Chemicals -3X

** 2017 New Entries**

Piramal Enterprises
Pennar Industries
PNB housing
Prakash Industries


(sta) #2

Hi. Maybe you need to pay more attention to number of stocks you have. Even with avanti and mannapuram you have not beaten the broad market. Would like to learn from you your rationale


(Lakshmi Narayana) #3

Hi,
Thanks for taking time and replying back on my PF thread.

I strongly feel 15-20 stocks are good enough for a portfolio and my top 10 holdings currently occupied ~76%.

Avanti Feeds is a very well known and proved business and growth is also not slowed down and still have a potential to grow 20-25%CAGR if their expansion plans and new business verticals delivered as planned.

And comming to Manappuram am happy with management and thier risk free gold business.They had recently ventured into different lending business like MFI,HFC,SME, Truck loans and they want to increase the non gold loan business share to ~50% in next 3-4years.
Their TIER1 capital is around ~30% and as per RBI it should be minimum 12% for NBFCS so they don’t require any additional capital for next 2-3 years but more interesting things to lookout are Rural economy recovery and growth in new business verticals.

And coming to PF returns am MORE MORE happy with 24-26% CAGR for a duration of 5-10years.

Luckily I got ~29% CAGR for 5.6years for next 5 years even if I generated 24% returns I’ll get around 26% CAGR for 2012 to 2022 period.

Btw this is not my full time job and I have other things to do so am having another PF investments in Mutual funds but currently it is just 16% of my total portfolio and am using that for goal based investments for a very long term of 15_25yrs and MF invesments might occupy 50% of my total invested PF in next 10years.


(Sandyboy) #4

The CAGR numbers you aim for may be sustainable but you will probably have to keep rebalancing
For eg CAN FIN homes by many parameters may have peaked and may not appreciate at the same rate going forward - compared with peers they seem more highly valued
Peer Comparison Of Top 7 companies in the same business such as LIC, Indiabulls etc show their numbers as high PE, CMP/BV and high D/E But growth numbers have been good.

So a close watch and rebalancing with more prospective companies will be needed but I Guess you know and are doing that already


(Lakshmi Narayana) #5

Hi,

Happy New year!!

Thanks for your response!! Yes in terms of My growth canfin is slowed down but will see next 3-4Q how it is going to utilize the Housing for all scheme.

In lending business along with growth asset quality is also very important and from quality stand point canfin is very good.

I recently bought PnbHosing and it growing at 30-40% but need to track thier quality of assets in the comming cycle.

Regards,
Lakshmi Narayana


(chiragp) #6

You should increase your allocation towards Pennar Industries.
It is a sleeping giant.
It will be a massive wealth creator if held for the next 3-5 years.


(Lakshmi Narayana) #7

Thanks for your feedback, i do SIP once It started delivering the projects as expected.


(Lakshmi Narayana) #8

As Prakash Industries got approval for demerger and also delivered good Q3 results , i added few more shares and looking forward to increase it size to 7-8% of PF