Prabhu - Portfolio


(lprabhu1107) #1

Dear Members,

Have been learning about investing through this forum over the last one year and iam sharing my portfolio and the rationale for investing for the forum members inputs, so that i can make corrections if any over this Investment journey,

Name of the Stock/% Allocation
Ashok Leyland - 17%
FCL - 15%
Gruh finance - 12%
Rain Industries - 11%
Repro India - 9%
Reliance Industries - 8%
Sterlite Technologies - 7%
OCCL - 7%
Asian Paints - 6%
Gravita india - 3%
Sunil Hi Tech - 3% and
Sun Pharma - 2%

Investment Rationale is as follows,

Ashok Leyland: Growing Electric Push Theme. Not a Multibagger but a steady compounder +consistent dividend yield. Strong Defence business Order. Management focus towards increasing revenue share in LCVs, Exports, Spare Parts and defence segments
FCL: Part of the India Consumption story. Unorganised to Organised business shifts. Expansion of Product Portfolio, distribution network and stores count. Need to monitor how the acquisition of Hypercity will pan out in the coming quarters
Gruh Finance: Part of the Affordable Housing theme and this stock was picked based on the inputs from VP forum thread on Gruh Finance. Strong management and consistent results
Rain Industries: Rain Industries acquired 2 companies: CII carbon in 2007(CPC - USA) and Rutgers in 2013(CTP - Europe). 36% Share in US and 46% share in EU (74% Revenue). Cement Business - Priya Cements (8% Revenue) and Chemicals Business - Resins and Aromatic (18% Revenue). Long standing customer and supplier relationships, Strategically located facilities, Patents - 15 and Trademarks – 24 and New Plant in VTZ scheduled to start Ops in Mar 19. Second Largest calciner globally with 2.1MT Cap
Repro India: Repro is trying to grab a major pie in the online publishing business model by aggregating the content of publishers and bringing them under one roof. Stock position has grownover the last few months and now the management has to deliver the results. Need to monitor next quarter results and decide
Reliance Industries: I guess I entered this stock at the right time when the breakout started to happen. Has grown over 40% in the last few months. Outlook remains strong with Jio, Crude and petrochemicals business performing strongly. Consistent dividends
Sterlite Technologies: Prospects in Optic fiber and System Integration business. Strong execution capabilities with strong order books. On-going capacity expansion program to be completed by mid-2018. Increasing demand from china, US, EU and ME regions. In the process of Rolling out 5G theme with UAE government
OCCL: Another pick from VP forum. Steady compounder stock. Strong management, Consistent dividends, results and near comfortable position in Insoluble Sulphur business
Asian Paints: Part of the Affordable Housing theme, Strong management with consistent revenue growth
Gravita India: Lead and Aluminium manufacturer. Electric vehicle push is expected to increase the demand for lead and aluminium. Last 5 years Revenue growth, profit growth, ROE and ROCE remains strong at >15%
Sunil Hitech: Entry at an average of INR 10.5. Grown over 40%. Part of the infra theme. High Risk and much depends on execution capability. Monitoring this stock on a quarterly basis and the first sign of negative performance will exit this stock
Sun Pharma: Entry at INR 500. Grown over 10%. Stock performance depends much on the USFDA approvals. Testing the waters in the pharma space

Forum Member inputs will help me to get the missing links and help me to connect the dots

Regards

Prabhu


(lprabhu1107) #2

Updated portfolio with recent corrections…

exited few stocks like…Gruh, Repro, Sunilhitech…


(lprabhu1107) #3

Portfolio Update:

with the recent corrections…made changes in the portfolio…exited few at a loss and few at profits and added new entrants in to the portfolio…holding on to the ones with conviction…Overall it was a good learning phase…

Forum members input is appreciated to refine the portfolio further…

Regards

Prabhu


(cathene) #4

How did you predict the management foul play well before it happened in meghmani organics. It will provide us a good understanding on how to approach the Indian equity with more precision and identifying the red flags before they could destroy our capital. Thanks well in advance


(chets) #5

You have some excellent picks. However recent additions like yes bank can be replaced with better banks. Looks like you entered the stock since it fell a lot. Never Compromise on quality however cheap the stock may be.
All the best!


(lprabhu1107) #6

exiting Meghmani was a luck…being a chemical engineer, i have all my friends working in Dyes, pigments, petrochemicals and related fields…hence got a cue from my souces to exit…and that is also the reason why i have 5 companies related to chemicals in my portfolio (initially i had 8)…circle of competence!!!


(lprabhu1107) #7

yes you are right…will monitor Yes Bank for some more time and then take a call


(Amit Jain) #8

The business is good. Numbers are near the top. NPA divergence issue needs to be put in proper perspective. Say this happened with hdfc bank… would investors shun it ?

I think it’s a opportunity right now.


(chets) #9

Everyone is entitled to their thought process. NPA divergence is enough for me to stay away however lucrative the opportunity may be.


(cathene) #10

Yes bank could be the next PC jewellers. Well may be just need to keep our fingers crossed all the time. :sob:


(Amit Jain) #11

From what I understand there is a divergence in the reported NPA. No scam as such. The divergence is not major or shattering. Just the fact that there has been a purposful misrepresentation of an important fact, and more importantly it has been caught.

Business is still strong, numbers that matter are good, not as good as HDFC bank’s nor is the asking price.

The stock is inherently volatile, as they take more risk to compete with Kotak and hdfc.