This is my current portfolio that I have currently.
I have written down the rationale of buying and holding each of these shares and their % holdings.
Please tell me if in your opinion, there are are major problems with my allocation and the rationale that I have mentioned.
I am looking forward to hear your opinions.
Make sure your weightage is distributed as per conviction
Your current portfolio contains these sectors
T̶E̶C̶H̶,̶ ̶B̶A̶N̶K̶,̶ ̶P̶H̶A̶R̶M̶A̶, the three biggest wealth creators are missing from your portfolio, you can remove 2 companies in the same sectors to add each from the three.
Tech: HCL Tech, LTI
BANK: HDFC Bank
PHARMA: Granules, Laurus Lab
Two main observation in your portfolio
- Most of companies you invested has that problem of “if that happens”(ITC, M&M, Renault,CARE, Mahindra EPC,Lakshmi…). This might have higher uncertainty in your portfolio and your portfolio might stay in current level for very long time until that"if that happens". So let go some of those companies where you have less conviction
- Have some Pharma, finance, IT stocks to keep your portfolio ticking.
Stock didn’t perform past decade will go same beating coming decade until we know some thing which market doesnt aware only help to earn profit . Any way
Tata motors/Ashok Leyland/M&M: Those are Auto sector. They are reeling under immense pressure last many years. I don’t think Auto sector will revive soon + many disruptions awaiting in this sector.
Tata motors product is good but reeling under immense debt. + Many new players like KIA/Hyundai/Toyota. Auto sector is brutal competition. Just value proposition matter for individual.
IFB: Their profit growth keeping going down and don’t see any moat with their products. Management too dogy. Even they have cash they never gave single penny as dividend to shareholders.
CARE rating: -Care have dogy management. post ILFS fiasco & Rajesh Mokashi been removed from post (former CEO) . They lost credibility in rating space. Crisil is better in this area.
NHPC, BEL,Cochin shipyard : they never created wealth. Betting on Turn around with Govt backed is risky.
If you ask me I would spin off many stocks and add quality company. I see in our country we have only few (quality+growth+mgmt) company but in that (Quality+growth+mgmt) bracket only Marico (just 1) in your PF.
Just My thoughts.
I totally agree with ranjits view.
Market never gave ITC valuations as FMCG .
Coz of it’s cigarettes and hotel business. N I fear it won’t rerate for long atleast till they demerge their other business .
Most stocks r trading bets. Doesn’t seems to be long term portfolio stocks. But every investor has their own opinion n choice
All the best
N yes bank might turnaround but it will be a long wait