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.