Building my Small and Micro cap portfolio

Q&A: Questions & Answers Portfolio Q&A
1

I am not new to investment and over the years I have dabbled in stocks, US stocks, MFs and crypto.

Now when I am well settled with zero liability, I have started getting serious about investment and trying to diversify into direct stock picks for that extra alpha return on my portfolio. Currently small/micro cap holdings are 5% of my portfolio with 95% being in index funds. Over time I will take it up to 15%, depending on performance. Started accumulating when Nifty went below 23500 to get a good bargain.

Criteria I followed,

  1. PE <= Industry PE. Only ignore in case of a few exceptions
  2. Market Cap < 10000
  3. Profit and Revenue growth > 20 %
  4. Zero or very low debt
  5. Making reversal on upside - In the monthly/weekly leaders, breaking 52W high, Golden cross. This is to filter out good stocks without positve momentum.

Not every stock satisfy all the above criteria but it satisfies majority.

  1. Epigral: Undervalued, golden cross, good profit/sales growth
  2. Gravita: Consistent high profit and ROE growth
  3. Supriya Lifesciences: Good profit growth, ROE, OPM and touching ATH
  4. Datamatics Global: Low PE, good profit growth, Undervalued
  5. TARIL: Good play for Power Sector, Almost a monopoly, Huge order book, Great profit and op margins
  6. Skipper: Good sales and profit growth
  7. Shakti Pumps: Undervalued, Golden cross
  8. TD Power Systems: Undervalued, Golden cross, zero debt
  9. Cartrade Tech: Debt free and good mix of different platforms. broke ATH and showing big profit growth
  10. Shaily: broke ATH, high profit growth
  11. Kfin Tech: breaking out resistance, High profit and ROE
  12. Sika Interplant: High promotor holding, price break out to ATH, good profit/sales growth
  13. Anup Eng: Resistance breakout, Super profit growth, good 25% OPM, Cashflow increased,
    Big in green Hydrogen
  14. Kitex Garments: US trariff play, aggressive expansion for market capture
  15. Astra Micro Wave: OPM increasing rapidly. Good Profit growth YoY, Defence play
  16. E2E: Good sales, Cloud and AI play

On Radar are: Tilaknagar Industries, Unicommerce eSolutions, Bondada Eng

I will log my journey in this thread. I will appreciate if you could review my choices, selection criteria and possible change in my approach.

9 Likes