Advice for Portfolio Balancing for long term@2016

Hello Friends,

I am holding below shares since last year jan@2015 and I am in a huge loss since then > 25%
now the market hits low during 2016 start , is it good idea to average those or buy new one ?
My horizon is 3-5 years.

Below is my holding:-

Stock Name Quantity Avg Buy Price
AXISBANK 50.00 445.51
CAIRN 50.00 138.42
DHANBANK 200.00 58.20
DIGJAM 100.00 10.42
EMAMILTD 30.00 1129.77
FINCABLES 60.00 264.11
FRL 50.00 139.57
GABRIEL 200.00 86.84
GOKEX 100.00 63.27
HCC 200.00 32.67
HINDMOTORS 300.00 13.03
IBVENTURES 150.00 35.62
ICICIBANK 200.00 312.23
IDEA 30.00 132.44
IDFC 300.00 125.03
IDFCBANK 200.00 0.00
IFCI 200.00 48.58
INOXLEISUR 100.00 240.37
IRB 50.00 270.59
JKTYRE 100.00 113.38
KALINDEE 100.00 130.77
LLOYDELENG 82.00 262.16
MARICO 50.00 223.60
MOIL 60.00 347.77
NATIONALUM 50.00 48.20
NETWORK18 100.00 60.70
PFC 50.00 229.96
RELAXO 100.00 535.52
SBIN 300.00 280.16
SELAN 125.00 276.75
SINTEX 100.00 103.75
SUNPHARMA 100.00 898.89
TATAMTRDVR 400.00 301.89
TECHM 15.00 527.01

I know its big list and I want to reduce this to 10-15 scripts.
kindly advice which shares to average for now.

I believe in SIP in select 6-10 stocks on a long term basis. Market fluctuations provide me opportunity to be aggressive or slow down in adding money.

I believe to shorten this list, the following table may help you:

  1. PAT growth, % CAGR over 3-5 years expected
  2. Current PE
  3. Fair PE in a stable, non-trending market, 3-5 years from now

If the implied returns match your expectations, hold/accumulate. Otherwise sell.

You can maybe think about adding some midcap stocks in your portfolio at these low valuations. Actually come to think of it, even the large caps have come down to good valuations which you can think about accumulating.

But as of now the whole portfolio is good with some good stocks. Exiting now will not give you anything, as the stock market as a whole is taking and will take beating. You can try to accumulate a few at the lower levels, and some new buys, that will give you good returns when the momentum comes back.

Cheers