I am currently pursuing a Ph.D. in Computer Science and am a new investor (have just started investing around 10 months ago). I have been regularly reading threads on ValuePickr for the past six months or so, however, this is my first post here. I am creating this thread to share my portfolio. As I am very new in the investing space, I hope to find some valuable suggestions here that will help me grow as an investor.
For me, the objective behind investing in direct equities is to beat the index by at least 5% in the long run. I am market-cap agnostic, and the current average market-cap of my portfolio is around 20k cr. I am learning new ideas each and every day, and hence my portfolio doesn’t have any unique style. I am happy to have a high churn till I find the investing style that suits me. Also, since I don’t have the ability to keep track of my investments every day, my portfolio size is around 20 stocks (currently at 21). I am sharing the portfolio here along with a one-line thesis. I plan to follow this up with a detailed write-up on each stock in the near future:
Average Buying Price: 690 (CMP 959)
Portfolio Allocation: 5.6%
This is an indirect investment in APL Apollo Tubes (to be merged), which is the best player in the structural steel tubes space (a fast-growing sector) with rising EBITDA per tonne due to product premiumisation.
Average Buying Price: 1982 (CMP 2276)
Portfolio Allocation: 7.59%
This is a company known for its import substitution and its recent Capex announcement on downstream derivatives of phenolics provides a fresh opportunity.
Average Buying Price: 117 (CMP 117)
Portfolio Allocation: 4.88%
This is one of the latest entrants in my portfolio and is an indirect investment in Equitas Small Finance Bank, which is improving its asset mix, and I find it very undervalued.
Average Buying Price: 248 (CMP 291)
Portfolio Allocation: 5.33%
This company operates in a semi-cyclical sector. Operating leverage should kick in the near to medium term as the company doesn’t have any Capex lined up in the near future.
Average Buying Price: 1416 (CMP 1353)
Portfolio Allocation: 6.77%
This was among the first entrants in my portfolio. I find it the best-managed bank in the country.
Average Buying Price: 2618 (CMP 2295)
Portfolio Allocation: 5.74%
Convincing myself to invest in a company that hasn’t delivered any returns in over a decade has been difficult. But I find this my best bet in the EV space with its upcoming EV launch in July, the 35% stake in Ather, and the Gogoto JV.
Indiabulls Real Estate
Average Buying Price: 139 (CMP 96)
Portfolio Allocation: 4.72%
This is another special situations opportunity. It is a bet on the merger with Embassy, which will increase the geographical presence of the company, and provide the visibility of cash flows in the near term. Looks undervalued, especially since a real estate bull cycle seems to be on the way.
Average Buying Price: 738 (CMP 747)
Portfolio Allocation: 4.36%
With increasing profitability and ROA, the bank loos like a proper turnaround candidate and might become the next HDFC Bank.
Average Buying Price: 288 (CMP 372)
Portfolio Allocation: 3.1%
This NBFC is gradually increasing its asset mix, with a higher proportion of the loan book towards secured loans. They have especially made good inroads in the gold loan segment.
Average Buying Price: 394 (CMP 379)
Portfolio Allocation: 4.11%
This is a play on improving capacity utilisation and increasing MR productivity. A plant in Goa under USFDA observation is supposed to start exports again this year.
JB Chemicals and Pharma
Average Buying Price: 1612 (CMP 1689)
Portfolio Allocation: 4.23%
This is a play on domestic pharma, which has FMCG-like characteristics. Increasing MR productivity can also be a trigger for growth in the near future.
Average Buying Price: 502 (CMP 578)
Portfolio Allocation: 4.82%
The management has scaled up Domino’s beautifully. If they can scale up even one among Hong’s Kitchen, Ekdum, or Popeye’s, enormous wealth can be created.
Average Buying Price: 606 (CMP 593)
Portfolio Allocation: 2.47%
The newest addition to my portfolio. What sets them apart from other diagnostic chains is their PPP model and the fact that the majority of their revenue comes from radiology, which sees less competition.
Average Buying Price: 557 (CMP 608)
Portfolio Allocation: 6.09%
New Capex goes live this year, and formulation revenues to double. Management expects 1B topline in FY23 itself.
Average Buying Price: 2711 (CMP 2938)
Portfolio Allocation: 4.9%
Management is trying to reduce dependency on UK public sector by scaling up the US operation. Eyeing some acquisitions for this purpose. Management is willing to add capabilities outside Oracle Cloud.
Average Buying Price: 1895 (CMP 1391)
Portfolio Allocation: 3.48%
Increasing revenue contribution from CMS is the key monitorable here. But cannot properly judge the API capabilities of the company. Willing to give the company one more quarter before I decide whether to exit or not.
Average Buying Price: 2123 (CMP 2178)
Portfolio Allocation: 3.63%
In my portfolio only for the CRAMS business which is the beauty. Hopefully, the NBFC business doesn’t show any negative surprise before the demerger happens.
Average Buying Price: 676 (CMP 689)
Portfolio Allocation: 8.62%
Currently my largest allocation. The sector itself is growing at double digits. The tie-up with Lubrizol should increase the margin. Can create Astral-like wealth.
Average Buying Price: 889 (CMP 1110)
Portfolio Allocation: 1.85%
One of my earliest allocations. The company should benefit from the shift from unorganised to organised sector in the footwear industry. The high PE doesn’t allow me to buy more.
Average Buying Price: 583 (CMP 624)
Portfolio Allocation: 3.64%
Fully integrated CRAMS player, which is a decadal trend.
Tata Consumer Products
Average Buying Price: 691 (CMP 812)
Portfolio Allocation: 4.06%
Fast-growing large-cap FMCG. The DNA of the company is creating brands from commodities (tea and salt). If they can do the same with pulses and spices (Tata Sampann) remains to be seen. Also, one of the biggest risks with FMCG these days is competition from private labels. Tatas buying out BigBasket, and also their offline presence (Starbazaar) should work in favour of Tata Sampann.
Currently, the weightage of Pharma and Healthcare in my portfolio is about 30% (excluding Piramal Enterprises), followed by Financials (again excluding Piramal), and Real Estate and Allied, both around 20%. I would like to thank @Worldlywiseinvestors, @Tar, and @sahil_vi whom I look up to as my mentors, and hope I receive some constructive feedback. I am also looking forward to writing detailed posts on why I chose these companies, and what are the key risks according to me.