New year greetings to all members…
My portfolio
1)Aries agro 41%
2)Repro india 25%
3)PPAP Auto 25%
4)Rajapalayam mills 19%
Total gain till date :- 20%
Can hold for next 5 years or even more
Also invest same amount again if market falls.
Please suggest what to do…
Concentrated portfolio of this nature is meant only for people with considerable experience and knowledge of the securities market. Since you are asking for help from strangers on an online forum, I am assuming that you lack both. I will advise you to quickly sell all of this and start with a well known diversified portfolio of blue chips and then slowly graduate to add little positions in small caps as you learn more.
In a bull market, even a monkey picking random stocks can deliver decent returns, in fact, the worst of the companies deliver the best of the returns in a bull market, hence the 20% that you gained is of no significance at all.
All the best,
Your truthful well-wisher.
Thanks a lot sir…
Exited from PPAP AUTOMOTIVE AT RS.430…
now please suggest what to buy in order to make my portfolio healthy…
Not deep analysis but this is my observation and I usually buy stock based on past performance :
Aries Agro - Net Margin dropped from 5% to 3% in last 3 years. I usually don’t like companies that work on thin margins. Just a bad Qtr will result in Net loss and that has been the case 2 out of the last 5 Qtr.
Repro India - Annual Sales are in negative trajectory. Debt went up and Reserves went down. They have turned from loss making to profit making this year which is good but PE is high.
Rajapalayam mills - Erratic Annual sales growth in last 5 years. Same with Gross Margin and Net profit. Debt gone down little bit and reserve up went little.
Looks like a risky portfolio. Any reason behind this investment ?
I bought Aries agro and Repro based on future oppurtunities … listening Mr.Vijay kedia
And Rajapalaym mills based on their past investments…
Aries Agro :-
Positives:-
1)It had 5 manufacturing facilities 4 in india and 1 in UAE , The company has 6400+ distributors, 86000 retailers and reaches 1,99,000 villages in India
2)Market leader
3)Macro trend - Increasing crop yield. Their products do to plants what vitamin pills do to humans
4)Company products are not under price control.
5)The product cost is miniscule in the overall scheme of things. So cost to benefit ratio is very high
6)Continues Dividend paying.
Negatives:-
1)Like any agro business, its fortunes are dependent on a good monsoon
2)Very heavy on working capital requirements.
3)Lack of awareness on part of the farmer on the benefits of the product.
My confidence on Aeries agro is at lowest level thinking to exit…
Repro India Ltd.
Positives:-
1)Books on Demand business could be 100 cr PAT making business in 2021-22.
Negatives:-
1)Books on demand not turn as per their expectation.
My confidence on repro india is gaining day by day…looking to add more…
Rajapalayam Mills
Positives:-
Not sure will small investors will get their value unlocked or not??
I am a beginner in stock market …
