Please find below my portfolio - Request your feedback.
- Prakash Industries (12%) : Steel upcycle, cheap valuation, demerger of plastic division to provide further re rating.
Risks : Promoter quality
- KEC international (10%) :Strong execution and order book. Extensive experience in project exectuion
Risk: Cash flow, current valuation may be a bit high if perceived revenue don’t materialize.
- Deepak Nitrite (10%): Should be a good import substitution story if new plant works out properly.
Risk : High debt level, any hold up on the new plant.
- Welspun Enterprise (10%) : Cash rich , should benefit from the upcoming bharatmala project.
- IRB infra (8%): Again may benefit from Bharat mala. Cheap valuation. Survived 2008 crash so should be resilient going forward as well.
Risk for both is political as well as execution.
- DCB bank (15%): Very good conservative management. No serious NPA so far, fairly valued but it can be big in next few years. Has laid out a proper plan for next few years and company is working towards it.
Risk : though company has not negatively suprised but not able to grow per plan may be a risk.
- HEG+ GE (20%) : Current theme of shortage in GE looks next few year story atleast and numbers are also backed up.
Risk : needle coke prices are a reverse in steel cycle.
- FEL (7%) : Debt == Investment/assets. So it may be a special situation play which may work out positively if mgmt walks the talk.
Risk: Management execution.
- Rest small tracking Talbros, BLS, Allcargo, SIB, IDFC.
Looking forward to feedback and suggestions.