@sujay85 - Fair points. Yes I am tracking China situation. The general sense seems to be that because of increase in environmental costs etc. in China, India is now expected to continue to remain more competitive.
For food colour companies, I’m expecting that they will mirror FMCG growth rate because of their end use. Also the regulatory aspect on account of being an ingredient in food as well as top notch clientele provides some amount of certainty to business. With capex being in final stages in both Vidhi and Dynemic, I expect volume growth to kick in. There will probably be some pressure on margin because of increased supply in the industry.
Fragrance industry was called sunrise industry because of their usage personal cosmetics and other segments which are actual sunrise industries. Probably, I need to do some more work on the overall market in this space.
@dineshssairam - Yes, most of the 1-2% allocations are tracking investments. I generally stagger my entry point wrt time and/or price points. In some cases, the stock ran away after my initial entry and I did not have the conviction to add more to the portfolio at higher price. Such allocations sometimes remain at lower % and I try to increase their allocation in future on dips.
Also, the conviction to identify one’s best bet probably comes with time. Presently, my high conviction bets are HDFC group (17% allocation) and Aarti group (12% allocation) - these are not cheap and hence I try to time entry points via technical analysis and buy on dips. Probably, next in the list which I intend to add more are Food colour companies (Vidhi, Dynemic) and LTTS (cutting edge tech services)
@maheshkumar - Theoretically correct. But it’s difficult to build in an expectation of any stock being 100 bagger when purchasing. It’s always a bonus if it happens, in which case, one should increase allocation as more triggers are realized during the journey.