Aditya Portfolio

Dear members,
Below is my portfolio accumulated since October 2017. Can you suggest any rebalance changes ?

MOTILALOFS 30%( Loss 20%)
GUJALKALI 12%(Loss 17%)
TIRUMALCHM 10.5%(Loss 18%)
CAPACITE 8%(Loss 11.5%)
MINDAIND 6.2% ( Profit 9.66%)
AVANTIFEED 5.4% (Profit 10%)
BAJFINANCE 5.4% ( Profit 10.17%)
PNBHOUSING 5%(Loss 0.85%)
DBL 4.2%(Loss 23.79%)
MGL 3% (Loss 1.89% )
NOCIL 2.5% (Loss 5.38%)
KPIT 2% (Profit +122.77%)
STRTECH 1.69%(Profit 4.98%)
BANDHANBNK 1.4% (Profit 39.68%)
KOLTEPATIL 1.4% (Profit 56.45%)
HEG 1.4% (Profit 29.46%)
SUNTECK 1.3% (Profit 52.52%)

Frankly speaking all the companies in this list are stocks which I picked after reading the corresponding threads on VP and felt I agree with the positive points mentioned. So will try to keep my rationale limited to the high allocation companies or ones which have not been covered by VP members extensively.

  • Motilal - I have unwavering faith on Raamdeo and the company’s asset management business. Especially in a country like India where equity investments by common public are super low. And Good Funds will always make money whichever way the market moves. Motilal has shown that they are superior in their performance time and again. The issue with manpasand and aspire home finance seems to have shaken the investor trust and hence the downfall.
  • Gujalkali and thirumalai- The Balance sheets look pretty stellar over the last 5 years. I have never seen a bad quarter from them. Especially Thiru is finding valuable product lines with Phthalic Anhydride & Maleic Anhydride which seems to be the most sensible thing to do in their current scenario.
  • Capacite - The meta play in the construction industry around bangalore and mumbai seemed good to me and the fact their order book provides high amount of visibility without really worrying about the sale of the actually built inventory.
  • Minda Industries - One of the very good auto ancillary companies in india supplying to the likes of BMW and Maruti. The balance sheet also looks pretty dependable.
  • Avanti Feed - Bought it at 1400 levels long ago because I felt it was an exceptional performer historically. Holding it right now with the hope of a recovery since I feel that there might be good days ahead. Not sure if I should continue or exit given that the shrimp industry is experiencing a downcycle.
  • Bajaj finance and pnb housing - NBFC play for me. BF is a true gem. The VP thread on the same makes significant arguments for why. I bought PNB Housing when it dipped during the PNB-Nirav fiasco because PNB housing is obviously not effected at all.
  • DBL - Their execution capabilities surpass most of the construction companies out there and they order book gives us visibility for the foreseeable future. There was news about the auditors resigning recently which the company trashed. And then there is speculation that the company’s books smell bad. I am not sure how much of that is true. The thread on VP has mixed opinions. But holding it.
  • BANDHANBNK - Tracking quantity. Growth in profits over the last few years have been nothing but extraordinary. Got it a cheap price in the IPO. Holding it for a few quarters to see how they scale in to the future after the IPO.
  • KOLTEPATIL and SUNTECK - Proxy for the redevelopment projects in real estate around mumbai and bengaluru since the available land is reducing by the year. Selected these two because of the high reputation they enjoy among prospective buyers and the resulting ability to clear inventory faster than competition. It also helps that koltepatil is very active in Pune and I have personally lived there. I know for sure that it is an excellent investment destination for real estate.
  • KPIT - I trusted that they could turn around their situation. Not exactly sure till which point they can grow from here. Not planning to exit till the story starts falling behind. The thread on VP has extensive information for anyone who has not read it yet.

I am looking for the communities’ valuable inputs on rebalances in the current smallcap-midcap environment.

Is there something wrong with the way I have asked the question? Since nobody has shown interest in this.

Please tell your rational behind buying the stocks … What are the key points that you looked in the portfolio stocks …

I have edited the post to reflect my rationale.

Here are my comments.

Motilal - Having faith is necessary but not a sufficient condition to put 30% of your portfolio in a single company. Company’s earnings are linked to market can drop when markets drop.
Gujalkali & Thirumalai - You need to make sure if these are good companies or companies having a good time.
Capacite - Company depends heavily on regular debt and equity funding and still the growth rate is dropping. Company’s fortunes are linked to real estate industry even if it is just a construction contractor.
Avanti - Historical performance is already in the price. Its the future performance that matters.
Bajaj Finance Bandhan Bank - Valuations are high.
DBL - Company is heavily leveraged and chewing more than what it can swallow. It may choke on it.
Kolte Patil and Suntek - Betting on home builders may not turn out to be the right way to bet on real estate.

Overall, I think your portfolio is tilted towards cyclicals that may be near the top of their cycle. As long as you are aware of it and ready to ride the downcycle, you should be OK.

Hope it helps.


Thanks @Yogesh_s for spending time on this and the valuable inputs. I am relatively new to the stock market and am looking for ways to mitigate the one-dimensional nature of my portfolio and diversify into industries which will counter balance it. Can you give me any pointers into where I should start? Again, Thanks a lot.


Almost all of these companies I do not track, one thing I can see though that portfolio is risky one. You should have significant portion in non risky secular growth stories is what I feel…If you already invested in mutual funds then its fine to put all in risky bets.

@Capacite - I read some about it during IPO but gave it a pass…Guess its promoters were earlier a part of another listed real estate company?

Also, you have almost 50% port in NBFC…which by nature is very risky business

It looks like you are majority invested in cyclicals (including MOSFL). In my experience, I have felt that more agility is required in such approach because one has to be aware of the timing of investment and exit.

Another thing to observe is that none of the big hits in your portfolio have resulted in a significant impact on overall portfolio profit. Of course the time frame to look at performance matters, but I think it would be worthwhile to revisit your original rationale of portfolio allocation - I found @Donald’s thread on this really enlightening and would recommend the same to you.