My Portfolio - Need you valuable feedback


(anirband87) #1

Hi Value Pickers,

I am 31 years old working in IT industry. I have been interested in equity markets since I started my career in 2009. I have an engineering background but due to my interest I have completed CFA all 3 exams and read a lot of investment books. Tracking the market since 2010 and started investing from 2013. From 2013 to 2017 by CAGR has been around 20%. I am happy with the return as my objective was capital protection. Throughout 2017 I was at 50% cash as I felt that the market was overvalued. Due to personal reason I liquidated my portfolio in Jan 2018 due to cash requirement and luckily avoided the meltdown.

Now I have built a new portfolio in last 1-2 months. Kindly review and provide your valuable feedback. My primary objective is now capital appreciation as my risk taking capability and appetite is high currently.
My equity portfolio is around 50% of net worth, rest 50% is invested in EPF, PPF and FDs. I don’t have any other investment in real estate, gold or other asset classes. I am looking at generating 20%-25% return.

All the stocks were bought after my detailed research. I have added a one line investment argument in support. Planning to deploy the cash portion in the existing stocks gradually as opportunity arises. Also open to consolidate to 10-12 stocks as I have multiple stocks in same sector.


(Gursimran Oberoi) #2

Hi Anirband,

Solid picks!

From a quick overview, I see that you are sector heavy on finance. Given that you may look to consolidate, why not do it rightaway?

Also 2% allocations in last 4 stocks are meant as tracking positions? If not, better to do away with them as their growth will not create massive wealth for your portfolio since their size is relatively too small in your portfolio.

Is the 50% fixed income and 50% Equity allocation intentional? Maybe you can allocate upto 60-70% of your portfolio in equity given your age.

Given that you are confident of your research, I would say that you can rightaway look towards consolidating your positions in 10-12 stocks. Specially, since you have 38% in cash to back those up when you feel confident of the valuations.

The overall picks are very stable compounders and proven names.
Albeit - Tata Elxsi, I dont know when value will unlock in this stock. I held this bag for quite some time with it not going any where.
Suntek - I have never researched this company.

Thanks


#3

Good mid cap portfolio. Buy price should also be good as you made it during correction.

Multibase, PI, Bharat Rasayan, GMM combined weightage is 13%. Would like to know your reasons on high weightage on chemical space. Also share some more details on your approach to portfolio management.

  1. Min-Max stocks
  2. Turnover/Churning frequency
  3. Approach to profit booking.

(S_Banerjee) #4

There is scope of revisiting few stocks with respect to future prospect as well as balsnce sheet point of view. You can revisit Bharat rasayan,Multibase and Nesco.
Good to see Bandhan as your top holding.


(anirband87) #5

Hi Gursimran,

Thanks for your feedback!

I am planning to gradually build up on PI Industries and Sunteck. Had the same plan for GRUH and Dabur, but both have run up fast before I could build bigger positions. Waiting for price or time correction, or might consider selling out while consolidating portfolio.

It happened by chance as I have rebuilt the portfolio in last 1-2 months.
Plan is to allocate all additional monthly savings to equity, so expect the equity allocation to move up gradually.

Thanks for your feedback on Tata Elxsi. Will consider this point while consolidating.


(anirband87) #6

Hi,

Thanks for your feedback!

There is still tailwind in this sector due to China crackdown. Expecting manufacturing to increase in India over next 5-10 years.

  1. I prefer to hold around 15 stocks.
  2. Dont have exact churning frequency numbers. I guess it would be 50%.
  3. For growth stocks, I remain invested till the growth continues even if its over valued. For value buys I am happy to book once it becomes fairly valued as per my calculation.

I make it a point to sell all loss making stocks after 1 year. This helps get rid of biases and remain invested or averaging down in laggards. I am happy to buy it back if I still evaluate it to be a good buy after say 1 week of selling.


(anirband87) #7

Hi,

Thanks for your feedback!

I understand your concern around growth prospect for NESCO and cash holding management for Multibase.

Can you please let me know your concern around Bharat Rasayan?

I am actually planning to increase my allocation a bit more in Bandhan to may be 12%-15%. Expecting the management to take a prudent decision around decreasing promoter stake. Looks like a high uncertainty, low risk bet!


#8

Did you evaluate Atul and Aarti industries in chemical sector. What’s the reason they couldnot qualify in your portfolio.


(anirband87) #9

Don’t have much knowledge on these two.
Chemical sector is quite diverse - bulk chemical, fertilizer, agro chemicals, speciality chemical. Are you looking at any particular sub sector?


(anirband87) #10

Sold Bharat Rasayan and moved the allocation to GMM Pfaudler


(anirband87) #11

Consolidated the portfolio significantly after selling stocks where I could not allot more capital due to over valuation risk or lower conviction. Added Abbott recently. Portfolio is doing good due to recent jumps in Bandhan and GMM Pfaudler.

The exposure to Banking/NBFC is intentional. Planning to keep significant cash % to balance risk and also to take advantage of any market correction. I was at 50% cash in 2017 which diluted returns. Hope to be luckier going forward :stuck_out_tongue:

Bandhan Bank - 12%
GMM Pfaudler - 10%
Bajaj Finance - 7%
Kotak Mahindra Bank - 7%
Piramal Enterprise - 7%
Thyrocare - 6%
Abbott - 5%
Multibase - 5%
Cash - 43%

Happy to get feedback on the portfolio.


#12

Even though, I don’t follow a concentrated portfolio myself but really impressed with yours. Short, solid and quality with excellent sectoral theme. Good going. Keep posting your thoughts and portfolio changes. :+1::+1:

I plan to add GMM but it has run up quite a lot. What’s your advice on long term story, is it worth taking a shot. I liked the MNC Indian combo model and unique glass container business for playing the pharma chemical theme from behind, without regulatory hiccups.


(anirband87) #13

@homemaker After the recent run up, its trading at ~30 times next year earnings. Reference: GMM Pfaudler: A safe way to play the Pharma/Chemical cycle

I started adding gradually from 1050. Considering their market share, quality products, positive changes on management relation and sector tailwind, story looks good for next 2-3 years. There may be positive surprises, while downside looks limited IMO. Daily trading liquidity seems to be low.

How good it turns out to be only time will tell :slight_smile:


(anirband87) #14

Added CRISIL and PSP Projects in Dec. Today switched from Bandhan to GRUH to take advantage of the “discount” and also added Ashok Leyland. Portfolio as of today:

GRUH - 13%
GMM Pfaudler - 10%
Bajaj Finance - 7%
Kotak Mahindra Bank - 7%
Piramal Enterprise - 7%
PSP Projects - 7%
CRISIL - 6%
Thyrocare - 6%
Abbott - 5%
Multibase - 5%
Ashok Leyland - 5%
Cash - 22%


(anirband87) #15

Update:
Bought ITC (5% of portfolio), no other trade in last 30 days.

Portfolio:

GRUH - 13%
GMM Pfaudler - 9%
Bajaj Finance - 7%
Kotak Mahindra Bank - 7%
Piramal Enterprise - 7%
PSP Projects - 6%
CRISIL - 6%
Thyrocare - 6%
Abbott - 5%
Multibase - 6%
Ashok Leyland - 5%
ITC - 5%
Cash - 17%

Feedback invited!


(dumboinvestor) #16

Do leave your rationale for the new additions as well. I see a big difference from the initial PF.
Once you leave your rationale Im sure people will be able to give you better feedback. I would however reconsider gruh. Would be great to know your rationale on the same.