Portfolio Update:
Added a few companies during the correction:
1. Cera Sanitaryware
This purchase hinged mostly one 2 things (Which are almost always the same 2 reasons for many of my investments): business longevity and valuation comfort. There’s a lot of headroom in the Sanitary-ware space. Kajaria Ceramics was another company that I considered, but I found Cera to be in a better financial position.
Even for a company their size (3500+ Cr), their R&D is still focused on controlling Margins (Annexure to Director’s Report in their latest AR). God knows I love companies that control costs like an obsession.
2. DHP India
A no-brainer kind of investment, I’d say. The company produces Gas Pressure Regulators for domestic and industrial use. I’d been tracking the company since a year back (When it was Rs. 350), but got around to investing just now. They could do a lot more to improve the presentation quality of their AR, however – it’s just plain confusing.
3. Hinduja Global Services (HGS)
The company used to be a BPO for companies in the US/UK. Recently, they’ve upped their game by providing Healthcare Analytics as a service. Since I work in the Analytics industry, this is falls right under my Circle of Competence. However, this sector is prone to constant disruption and only the most vigilant survive. This justifies my comparatively smaller stake. I might increase the stake here based on further inquiry.
My top 5 holdings form 75% of my portfolio and I’d mostly like to keep it that way. I still hold 11% in cash and accumulating more as I go along.