Consistent performer available at reasonable price. Has long runway for growth. Strong subsidiaries.
Mahindra & Mahindra
15.92%
Dominant launches. Absolute star performer in SUV segment.
Narayana Hrudayalaya
17.15%
Healthcare provider with good track record and long runway for growth
Infosys
16.14%
Largecap IT with high cashflows. Excellent track record with consitent dividend & Buybacks
Power Grid Corporation
17.22%
Monopoly in power distribution + attractive dividend yield + reasonable growth
Natco Pharma
15.82%
Unique business model with strong balance sheet. Company is diversifying in other areas and markerts.
Hi Everyone,
I have decided to finally start dabbling in stocks directly and keep my portfolio updated on quarterly basis. My investment rationale is influenced mostly by Chuck Akre & Terry Smith. For finding companies to invest in, I like Akre’s 3 legged stool approach of “Great businesses, talented management and high reinvestment rates.” and after finding company to invest in, I like Terry Smith’s approach of “Buy quality, Do not overpay, Do nothing.”
While these are easier things to say than to put in practice. I have made one personal rule of not putting less than 3% in single stock on cost basis and not diversify to more than 20 stocks. I will keep adding more capital and hence portfolio will keep diversifying but this is start of my portfolio which I have started in 2024.
Any suggestions or questions are welcome. And I would also like to thank @harsh.beria93 & @gurjota for their portfolio threads which have helped me immensely in finally finding courage to start investing as a retail investor.
Congrats for starting your direct stocks journey! Seem to be solid businesses and you’ve good allocation to these name. Good start!
You may want to consider some names in consumption (not FMCG but sectors such as household appliances, tourism, etc) as I believe Indian household discretionary spending will increase over period of time.
Btw, I happen to hold Kotak Bank with similar thesis on subs although now am not so sure of optionality of listing them separately as it seems to be merger seasons!
The stock price of kotak mahindra has been in a consolidating phase for the past five years. I would like to know, if the company is a consistent performer why has it not reflected in the stock price.
Private banks were trading at premium (P/B) and public sector banks were trading at discount and we can see now that PSBs have caught up and private banks P/B are fairly valued or undervalued. So, basically mean reversion has played out last few years.
Specifically, for Kotak, there was uncertainty around succession plan of Uday Kotak which kept price range bound.
Now that 2. is no longer an overhang and value funds like PPFAS adding Kotak their portfolio am hoping price will catch up with business value.
I am planning to add some names in consumption space in future as more capital becomes available to me. Also, that you for the video it was really fascinating deep dive in investment process of Mr.Maran.His investment approach resonated with me.
Also, regarding Kotak Bank, I think while they don’t de-merge various businesses, I still like Kotak Bank at its current valuation a lot more than its Pre- Covid valuations.
I think current price movement of Kotak Bank is similar to consolidation phase in ITC. Earnings growth without price movement increases margin of safety for me and also gives me more time to accumulate more quantity of the stock.
Largecap IT with high cashflows. Excellent track record with consitent dividend & Buybacks
HCL Tech
11.79
Largecap IT with better track record than many of its peers. Consistent dividends as well as growth in teens.
M&M
8.58
Dominant launches. Absolute star performer in SUV segment.
KNR Construction
7.83
One of better managed companies in one of toughest sectors. Sectoral tailwinds and lower valuations as well as proven track record.
Axis Bank
7.57
Private bank with attractive valuations and growth.
Power Grid
7.43
Monopoly in power distribution + attractive dividend yield + reasonable growth
Natco Pharma
6.98
Unique business model with strong balance sheet. Company is diversifying in other areas and markerts.
Sharda Cropchem
6.68
Agrochem recovery play. Asset light model with debt free balance sheet.
Kotak Bank
6.47
Consistent performer available at reasonable price. Has long runway for growth. Strong subsidiaries.
Bajaj Finance
6.39
Consistent performer which got de-rated significantly which made entry possible.
PSP Projects
6.16
Excellent execution record. Valuation comfort because of recent headwinds.
Narayana Hrudayalaya
5.77
Healthcare provider with good track record and long runway for growth
PI Industries
5.68
Consistent performer which finally gave valuation comfort for entry.
Hi everyone,
Here is the quarterly portfolio update #1.
I have added some new companies to portfolio with some added insights.
There are two new added aspects of learning that I decided to add to the portfolio.
1. Mean Reversion
Added companies from beaten down sector such as Agro Chemicals with their margins reverting to long term average. I decided to buy companies on basis of their balance sheet as companies with less debt will be able to recover quickly than its peers. Added Sharda Cropchem and PI Industries with this theory in mind.
2. Basket Approach
In case of not being sure with which company to pick from any sector, buy multiple companies with small allocations to ride the tailwinds provided by sector. Added KNR Construction and PSP Projects from construction sector to allocate some investments in rising government spending in infrastructure sector.
No sell transaction during the quarter.
Increased holding in Infosys from previous post.
Rest of changes in allocation are based on market performance of the company.
Can you optimize your portfolio for minimum variance which most of the global fund managers do. That will have minimum standard deviation. Hence if correction or market fall happens it gives good resistance
Removed PSP Projects post news of Adani acquisition and added the capital to KNR Construction.
Reconsidering investments in Indraprastha Gas & Power Grid after Government’s decision making regarding gas distribution companies. Pondering on whether to stay in business with Government or remove them from portfolio despite tailwinds.
Recent launch of EVs by M&M has made me reconsider investments in Indraprastha Gas.
Learning about Pumped Hydro and its applications have made me reconsider Power Grid investment thesis.
Monitoring MFI situation and tracking if the pain can slip into lenders in my portfolio as well.
Many companies from watchlist have become attractive after recent correction in market. Will wait and watch before making any significant churn. Trying my level best to keep portfolio company number under 20. But will reconsider my options.
Exited M&M as well as Ganesh Housing because of valuations out running earnings growth. Felt there were better opportunities in market.
Exited Indraprastha Gas and Power Grid after Government’s decision regarding gas distribution companies.
Exited Nirlon in favor of NESCO due to better growth visibility at similar valuations.
Exited Natco Pharma due to latest quarterly result.
Additions
Added KDDL because of sectoral tailwinds and attractive valuations in recent crash near 52-week low.
Added Oberoi Realty after learning more about its business model. Switched from Ganesh Housing.
Added NESCO due to diversified business as well as available land bank. Switched from Nirlon.
Added CMS Info Systems because of its market position as well as valuation comfort.
Notes
This quarter had more churn than the rest of all previous quarters combined.
There is a clearly visible investing style emerging in portfolio as well as watchlist after recent correction.
Feeling very comfortable with portfolio quality and valuations after PSU exits as well as some profit booking.
Fresh capital deployment in the wake of Trump tariffs in current portfolio is highly likely. Feeling very comfortable in adding more shares of existing portfolio companies at current market juncture.
Churn level from next quarter will be back to previous quarters. This quarter was anamoly rather than norm.
