Hi All,
I have been following valuepickr for long and have learned so much from the community. I would like to get feedback on my portfolio and investing hypothesis behind the companies.
I am 31 years old and have been in the market since I started doing my first job in 2014. Until 2 years back I used to invest via Mutual Funds but recently I have started doing my research and picking stocks. So far I have been able to get good returns but I want to make sure my Investing hypothesis is correct hence asking help from the community.
Here is what my stock portfolio looks like:
| Stock | Profit % | Protfolio % |
|---|---|---|
| Anand Rathi | 241% | 47% |
| Zomato | 138% | 11% |
| NPST Ltd | 51% | 8% |
| Angel One | 40% | 7% |
| DP Abhushan | 60% | 13% |
| Dreamfolks Serices | -4% | 4% |
| LT Foods | -3% | 10% |
*all holdings are less than 1.5 years
Anand Rathi
- Wealth management is picking like crazy in India, as average per capita Income increases there will be more and more folks looking for wealth management services. Affluence Indian numbers have increased more than 20% YoY and is expected to grow at same rate
- The company has delivered a compounded annual profit growth of 31% for the last 5 years.
- Highly experienced and trustworthy management with 48% holding
- Trading at PE of 77 which is the only thing I am worried about
Zomato
- Zomato I feel is a turnaround story and with strong growth prospects. They have generated revenue growth of more than 70% for the last 5 years. I think they have the potential to grow at 30-40% CAGR for the next 3-5 years.
- I do believe that the grocery delivery model will generate more revenue in 3 years than the food delivery business. I have a really close friend in Swiggy and the growth Swiggy and Zomato are going to deliver in the next 2-3 years will beat everyone’s expectations.
- This is
a bull run stock and I plan to hold it as long as the bull run continues. Although PE is quite high
NPST Ltd
- Their core expertise is to build tech solutions for fintechs and banks. Every bank is designing a strategy to increase their digital penetration and they don’t have the tech to build it on their own. That is where NPST comes in.
- Digital payments growth is on steroids and NPST is well placed to take advantage of that. Well-experienced promoters and holding around 68% of the company
- Czary growth in last 2 years, they are growing at around 100% for the last 2 years so I am okay with a current PE of 114.
Angel One
- The number of folks entering markets is on an upswing and again with an increase in per capita income this is expected to increase. There is a potential for good secular growth for next 2-5 years.
- EPS has grown at around 65% CAGR for the last 5 years with a PE of 21. There is a scope for PE expansion as well. With EPS growth and PE expansion, this can deliver good results.
- Company market share from 10% in 2022 to 15% at end of 2024
DP Abhushan
- This is based on “buy what you see”. I am from MP and DP Jewellers is the most trusted Jewellery brand in the region.
- It has 8 operational stores as of now and planning to open 2-3 stores every year and enter Gujrat and Chhattisgarh
- Has one of the highest footfall conversation ratio and repeat rate in the Industry.
- Delivered an EPS growth of over 40% for the last 5 years and management guidance is also good. Its PE of 45 is high for a Jewellery business but as long as there is a bull run high PE should not be an issue.
Dreamfolks Services
- This is a bet on the increasing affluent class in India and the growth of the aviation sector. India has placed highest orders of planes for 2024 in the world.
The company has a monopoly on the airport lounge business. It is also trying to enter railway lounge services which played well and can have a high growth potential. - EPS growth of more than 40% for the last 5 years and trading at a PE of 35. At this valuation looks a good buy
LT Foods
- Trading at a PE of 12 which I feel is very low for a company growing at a rate of 25% every year.
- Company I entering into the superfoods and ready-to-cook segment which can help the company grow.
- The majority of revenue is coming from the Speciality Rice segment which is more of a crowded segment. So this is a concern
Would love your thoughts on the portfolio.
TIA!!