Request to kindly review my PF


(arjun) #1

I am 26 years old and have been a member of this forum for quite sometime now. The discussions within this forum are really interesting and provides a lot of knowledge for investors . I was thinking from a very long time whether to write about my holdings or not, finally have gathered some courage to do it,

Here is my PF with % allocation (in approx):

70% allocated to MF and 30% in equities

Sector :
Auto Ancillaries
Munjal Showa Ltd. 7.33 %

Chemicals:
Chemfab Alkalies Ltd. 8.13 %
Grauer & Weil (India) Ltd. 24.27 %

Plastic:
Cosmo Films Ltd. 12.3 %

Pharma:
J B Chemicals & Pharmaceuticals Ltd. 25.56%

Paper:
Kushal Tradelink Ltd. 12.34%

Finance:
Manappuram Finance Ltd. 10%

Higher allocations in G&W(india) and JB Pharma is because to long term SIP. I have to cut the allocations to around 10%

Looking for feedback/ criticism from seniors and fellow members.

Thanks

Disclaimer:
I am not a SEBI registered research analyst. The
above portfolio is not a buy or sell recommendation. Please do your own
due diligence before taking an investment decision. I may sell, switch,
or further buy any of the stocks mentioned above on my discretion.


(Karthick Subrmanian) #2

Nice portfolio, Its a very niche and complete concentrated portfolio.

Its better u hold atleast 30 % of Investment in any Nifty Index Mutual Funds


(puneetc) #3

Hi Arjun, Could you tell the rationale about investing in Kushal Tradelink? I came across this recently and find the numbers quite attractive.


(vinoths) #4

HI, Do you have any views on Kushal Tradelink? Looks like significant growth in EPS and profit (TTM) on consolidation basis?

Regards,
Vinoth


(seeankur) #5

I see Kushal tradelink as a operator play… please beware of the same… suggest you to book profit and move on…


(arjun) #6

Surely it looks like KT is purely operator driven.profits booked


(seeankur) #7

Also I read last 3 years annual report and the report is completly fraud. According to me the company is fraud and just cooking PNL.
I will write my analysis on the same in few days…


(Parag) #8

HI Arjun-
Looking at the portfolio, I have few observations

  1. You seem to have a high exposure to MF. Investment in MF is good, don’t take me wrong, but it will not make you rich over the longer term. MF has a lot of overhead (management fees/ annual fee/exit fees) which take away few percentage every year. Over a longer, this matters a lot. Moreover, most of MF pile on the same set of stock and most MF do not outperform the market. There is quite a few research done on this field in the US.

  2. Some of the stocks you have hot stocks in the market. If you are holding them for a long time and they have become hot now, it is great for you. However, if you bought them because everybody is recommending them, my advice will be cautious. Some/most of them look a small cap/mid cap, which can deliver a wonderful return, but the market takes a turn, they may be decimated. Even if the market recovers, yesterday hot’s stock unlikely to gain their past glory. If you are holding them because you have a conviction (based on Financial numbers), then keep holding them.

  3. Your portfolio does not seem to have large caps. In my view, a quality large cap like ITC, Asian Paints, HDFC, HDFC Bank delivers decent returns. Even if the market a take a turn for the worse, they are fundamentally sound and gain market share. They are unlikely to multiply in a HURRY, but theses stocks have a potential to deliver some market-beating returns.

All the best


(arjun) #9

Hi Parag,

Thanks for your valuable response.
Yes, I have a high exposure to MF, as I had started my investing career just around 3 years back and that time I wanted to play it safe. Well, I had intended to play it safe but eventually burned in fingers by investing in equities directly. It taught me a lesson , never to fall for stock tips. Then I found Value Pickr, and since then i have learned a lot but still much is left to learn and grow.

Since my first post, my portfolio has undergone few changes. here is my latest folio. I would like to have your reviews on it. I would also request people on this forum to provide their reviews on the same.

Sector :
Automotives:
PTL Enterprises 4.68 %

Banking & Financial Services:
DHFL:4.15%
Manappuram Finance Ltd. 8.14%

Chemicals.
Chemfab Alkalie 4.33%
Grauer and Weil 31.13%
Phillips Carbon 5.90%
Vikas Ecotech 18.98%

Textiles:
Trident. 4.32%

Pharma:
J B Chemicals & Pharmaceuticals Ltd. 11.83%


(Parag) #10

I hope you have had a fantastic return so far this year !.

I agree ValuePicker is an excellent forum for exploring the investment world for novice and experienced investor alike.

As you have recently started your investment journey, I must commend you for the courage to write your portfolio and seek opinion. It is the tough thing to ask opinion publicly and get an honest response: particularly in the stock market where many people claim to an expert and everyone has their view. Keep it up and do not worry about what other say- what is important is what you learn because in investment all learning is cumulative. You may lose small money now- hopefully not- but what you learn may prevent bigger future losses in future, or it may help in future to select stock wisely. So, carry on your learning.

Unfortunately, I do not track any of the stock mentioned in your portfolio, so I do not have any views on these stock, but I still believe that your portfolio is focused too much on the small-cap/mid-cap stocks which are hot and favourite. Again, this is a general observation, and I hope I am wrong and you get the good return.

Overall, I think you have high exposure to the chemical sector (50%), which is fine if you know in and out of the sector and have great conviction. However, if you bought it because everybody is saying so, then you may want to rationalise your exposure to chemical companies a bit, or you may want to buy Mutual fund dedicated to the sector to hedge your risk

I would be cautious, very very cautious about small stocks and stock which are hot.

If I am starting today with as much experience as you, I would start by investing in safe stock and observing market over the period, and buy when market present opportunity. I would quote Warren Buffet “I buy when everybody is selling and sell when everybody is buying”.

If you are looking for a long-term return (5/10 year) it is worth paying attention to Howard Mark’s advice (he gave it last year) to the investor in the current market condition is “Move, but with cautions !”.

All the best!
Parag


(MONK88888) #11

I just spotted your portfolio-great going I presume. The reason I spotted this conversation is because of you mentioning GW-Can you give the rationale why you picked it up -a year back. As you are aware there has been a lot of movement in that stock over the last few weeks.
In fact only recently I chanced upon it & felt it was a good candidate for 5x over the next 10 years
Discl: Don’t have GW in my portfolio


(arjun) #12

Hi @MONK88888,
Grauer & Weil (India) Ltd., is one of the very few metal finishing houses the world over, capable of offering an integrated package of chemicals, plants, effluent treatment systems and waste recovery techniques from spent solutions - Truly a ONE-STOP-SHOP for end-to-end solutions.
Company’s main business activities includes:

  1. Chemicals
  2. Engineering
  3. Lubricants
  4. Paints
  5. Real Estate [* Value unlocking]
  6. Software Development

Following are the group companies -

  1. Bombay Paints Ltd.
    Industrial OEM/Marine Paints/Decorative

  2. Growel’s 101 [* Value unlocking]
    The latest addition to the group which holds out the promise of being one of the most aggressive retailing venture yet.

  3. Growel Projects Ltd. [* Value unlocking]
    Growel Projects Limited, a property development company .

  4. Growel Goema (India) Pvt. Ltd.
    A Joint Venture with Goema for the manufacture of waste water treatment system more specifically for the plating industry. Included in our range is zero discharge ,metal recovery process based on chemical treatment , resin technology, membrane separation technique with or without the use of electrolysis.

  5. Growel Softech Ltd.
    IT specialists and solution providers, also offering full training programs , for Internet Technologies, Client Server Technologies, Lotus Notes, ERP consultants etc.

  6. Digikore Design Ltd.
    SA Communication Management Company

  7. Digikore Studios Ltd.
    A Co - Production studios for international 2D and 3D cartoon style animation; working with studios in South Korea, Belgium and other European countries.

  8. Growel Energy Co. Ltd.
    A hydro Electric venture coming into existence in the north of India in the Himalayas.

  9. Growel Sports & Hobbies

  10. Growel Investment Pvt. Ltd.
    Financial Services/Advicers/Consultance.

  11. Sidasa, Spain
    Lubricants.

  12. Poona Bottling Co.Pvt. Ltd. Pune
    Aerated Drinks/Mineral Waters

  13. Walluj Beverages Pvt. Ltd.
    Aerated Drinks/Mineral Waters

It is nearly a debt free company with 69% holdings with promoter.
This has given nearly 1338% returns in last 4 years

Majority of their sales turnover is from Electroplating Chemicals , Paints, Enamels, Varnishes and Oil Bound Distempers and Electroplating Equipments

My Rationale Behind Investment -

  1. Value unlocking through development of land/properties in Mumbai/Pune

  2. Expansion of Growel 101.

Seems like there is no existing discussion thread on Grauer & Weil (India) Ltd. on VP.

Recently this stock has featured on Economic Times.


(Krishnendu) #13

Can we have a detailed post on this company ? It seems an interesting story. Long back in 2010 The Equity Desk of BM has covered few points on this. The identification has been done by Hitesh bhai

http://www.theequitydesk.com/forum/forum_posts.asp?TID=2673


(arjun) #14

Thanks for sharing @KC1986


(MONK88888) #15

Apologies I was logged out of my system for sometime before I could get on board. Thank you for spelling out your thoughts on GW-succinct
regards