Need suggestion on portfolio SK


(skg) #1

Hi, I am almost beginner in stock market. I did some trading in past and lost some money as I bought shares without knowing about what company is doing. This time I am planning to be a value investor and invest in good quality stocks. Below is my portfolio as of date and I need Value pickr members expert suggestion.

Name Investment price
BHEL 89
Bharat Electronics 167
CPSE ETF 26.70
Coal India 250
Deep Industries 190
Exide Industries 220
ITI 129
Jindal Steel and Power 188
Bhushan Steel 44
ICICI Lombard 751
SBI 277
Yes Bank 311
Maruti Suzuki 9500
M&M 758
ITC 260

My main allocation is in Bharat22,CPSE ETF, Bharat Electronics and Jindal Steel and Power. I am planning to have below portfolio in long term along with expected price. I will not wait for below price to come. Instead I will buy these stocks as soon as they are 25-30% down from current price.

Bharat Electronics - 100-120
Exide Industries - 100-120
Amaraja Batteries - 400
Maruti Suzuki - 5000
M&M - 450
ITC - 120
HDFC Bank and/or ICICI Bank - 1200/150
Yes Bank - 250
HDFC - 1200
Jindal Steel and Power - Already below book value
Asian Paints - 500
Cera Sanityware
Kajaria ceramics - 250
Eicher motors - 12000
Escorts - 400
Dilip Buildcon
Persistent Systems
Infosys

Apart from these, I am thinking of small cap like Deep Industries, Nitin spinners, Kitex garment. Currently I have allocated 25% of my planned invetsment. I am waiting for some stock correction(25-30%) so that I can allocate 25-30% more to my portfolio. My horizon is long term(5-10 years or more) depending on how business perform.

Any feedback on the stocks and/or price will be appreciated.


(Divyanshu Bagga) #2

Public sector companies never become long term wealth creator. At best, their returns will match inflation. Though, they can be good short term bets if there prices become too depressed. Or if privatisation card is being played, then that can unlock huge value. But that will be special situation Investment.

Position size is just as important as stock picking and entry price. FOMO can make you own all the hot stocks out there, but if your bets are spread too thin, the overall returns will only approximate the average market return. Concentrate on a handful of well researched stocks. It should be your research for you to have conviction of holding them.

That said, you will find seperate threads for some of the stocks mentioned above in this forum. I assume they are good picks, but I only own HDFC bank. It’s a long term growth story, and with value migration from PSU banks, we can expect the growth story to continue for few more years. Besides, it is a kind of business where size is beneficial, as it will have a larger pool of loyal customers.

Lastly, I would not suggest adding a stock if it has fallen 20-25%, unless market is also down by the same magnitude or more. But if your stock is falling that much in a rangebound or strong market, then something is likely to be wrong with it’s business.


(Utsab) #3

ITC is a super fmcg stock but it’s a huge laggard. Movement is not there much. Goes from 260 to 275 and then again falls to 260. Have tested the patience of it’s shareholder for a long period of time


(skg) #4

Thanks @Divyanshu_Bagga . I agree about public sector companies. I am planning to have only Bharat Electronics in my portfolio and get rid of Bharat 22, CPSE ETF and probably Coal India too. I am double minded about SBI since it is biggest public sector bank and available at good rate. But considering whats going on with PSU bank, I might sell it or keep it in small quantity.

About Bharat Electronics, reason why I want to keep it is -

  1. There is Make in India initiative going on and Bharat Electronics will have advantage of this. e.g. Boeing will setup a factory in India with HAL. Similar initiative might be happening for Bharat Electronics too
  2. Order book of Bharat Electronics is huge and it has a wide MOAT. There is no other company to compete it.
  3. Available at good rate near to intrinsic value(120).
  4. Modernization of weapons is expected in India and this is mentioned by defense minister too.

Again thanks for your feedback


(skg) #5

@Utsab I have ITC for around 6 months and I observed same. There is less movement. Reason why I bought is mainly due to monopoly in cigarette business. Currently I have very small quantity of ITC(5%). 50% of my portfolio is of Bharat 22,CPSE ETF and Jindal Steel and Power.


(mylu) #6

I was buying BHEL in SIP , it was continuously going down. I read through the CAG audit report sometime back and decided to move out of it completely.