Hi everyone,
I am fairly new to the world of investing and started out just an year back. I have created this thread to enhance the co-learning aspect in my journey and along the way give something back to the community 
At the moment , ~75% of my allocation lies in financial space. This was largely because when I started my journey I believed that financial sector was undervalued. But I naively chose to assign a very aggressive allocation to it. I am looking to trim it down now.
Here is my sectoral allocation :
| Financials |
75.50% |
| Banks |
54.00% |
| MFI |
13.00% |
| NBFC |
8.00% |
| Other sectors |
24.50% |
| Manufacturing |
4.50% |
| Textile |
4.50% |
| Chemicals |
4.50% |
| Market linked |
1.50% |
| Real estate |
1.00% |
| Cash |
8.50% |
I’ll delve into the individual stocks and my thesis around them now. Here’s the portfolio
| Banks |
54.00% |
| Equitas |
17.50% |
| HDFC Bank |
12.50% |
| City Union Bank |
8.50% |
| Axis Bank |
5.50% |
| South Indian Bank |
4.50% |
| IDFC First |
3.50% |
| Kotak |
2.00% |
- Equitas : This has been my most successful bet. It is in stage 2 right now and MD has given a growth guidance of 25-30%. I’ll continue to monitor and hold this as long as the asset quality is intact.
-
HDFC Bank, Axis, Kotak - Bought it last year when it was cheap. Looking to ramp up textile allocation after selling these.
-
CUB : Trading at decade low valuations. Market has hammered it due to NPA divergance issues and low growth guidance. I’m planning to hold it for a couple of years. In such a time frame the growth should be back on track, since the growth issues are largely due to internal approval policies.
| MFI |
13.00% |
| Satin |
4.50% |
| Arman |
3.00% |
| Spandana |
2.00% |
| Ujjivan Financial Services |
2.00% |
| Credit access |
1.50% |
- Playing the MFI sector with this basket. I was intially invested in Arman and Credit access. But have recently bought satin and spandana. Satin is cheapest in the MFI sector right now , it’s trading below book value and is doing a 3.5% roa in the recent quarter.
| Manufacturing |
4.50% |
| Pricol |
4.50% |
- Pricol : This has been my most recent entry. Management has guided a top line of 4000 cr by FY26. Will build more positions in this if it falls.
| NBFCs |
8.50% |
| Ugro capital |
2.50% |
| IIFL |
2.00% |
| Mannapuram |
2.00% |
| Mas Financial |
2.00% |
- Ugro : I’m betting on the co-lending model with UGRO. There is a big overhang of equity dilution in ugro in FY25. Tracking very closely. I’m also tracking some other very small players in the co-lending space. But want to see how ugro evolves.
- MAS: Mas has had a decade long history of good asset quality. In my view this is the safest bet on the credit cycle growth considering that it is still trading at less than it’s historical book value.
| Textile |
5.00% |
| Rupa |
2.00% |
| Dollar |
2.00% |
| Gokex |
1.00% |
- Rupa, Dollar, Gokex : Textiles have been facing the headwinds because of the series of issues starting with the spike in cotton prices. Rupa and dollar have already started reporting relatively decent results compared to previous quarters. My plan is to take the textile allocation to 20% in the next quarter. I’m also looking at Welspun in the textile space. But waiting for it to cool down after it’s recent rally before investing into it.
| Chemicals |
4.50% |
| Sharda Cropchem |
2.25% |
| Kama holding |
2.25% |
| Market linked |
1.50% |
| Angel one |
1.50% |
| Real estate |
1.00% |
| Sunteck realty |
1.00% |
Views invited. I’m happy to hear your insights.
5 Likes
Today, I’ve reduced the allocation in CUB to 2%. I do feel that CUB is trading at cheap valuations. But with markets running up , I feel that the stage 4 stock might just underperform in the next quarter. The opportunity cost is relatively higher here. I will look to increase the allocation once CUB enters stage 2.
I’ve used these funds to increase my allocation in Pricol, Angel one and Satin.
I’ve also added MM Forgings into my portfolio. They have been performing great in the past couple of years and have given a 20% volume growth guidance. With the expectation of interest rate cuts, I’m looking to add more of manufacturing oriented business who have high aspirations. MMFL fits right into this bucket.
Updated portfolio :
| Banks |
48.50% |
| Equitas |
18.00% |
| HDFC Bank |
13.00% |
| Axis Bank |
5.50% |
| South Indian Bank |
4.50% |
| IDFC First |
3.50% |
| City Union Bank |
2.00% |
| Kotak |
2.00% |
| MFI |
14.00% |
| Satin |
5.50% |
| Arman |
3.00% |
| Spandana |
2.00% |
| Ujjivan Financial Services |
2.00% |
| Credit access |
1.50% |
| Manufacturing |
8.50% |
| Pricol |
7.00% |
| MM Forgings |
1.50% |
| NBFCs |
6.50% |
| Ugro capital |
2.50% |
| IIFL |
2.00% |
| Mas Financial |
2.00% |
| Textile |
6.00% |
| Rupa |
2.00% |
| Dollar |
2.00% |
| Gokex |
1.00% |
| Welspun |
1.00% |
| Chemicals |
4.50% |
| Sharda Cropchem |
2.25% |
| Kama holding |
2.25% |
| Market linked |
2.50% |
| Angel one |
2.50% |
| Real estate |
1.00% |
| Sunteck realty |
1.00% |
Cash 8.50%
4 Likes
