ValuePickr Forum

Dishant's Portfolio - Views Invited

I started my investment journey in July 2017 (my age was 24 then) during the peak of the small cap bull market. Almost all of the investments made during this phase were in low quality small and micro cap stocks which resulted in huge losses by the end of 2018 and i almost stopped looking at portfolio for almost an year. Started focusing on my investments again from January 2020 and made some gains before covid hit. This time I didn’t abandon my investments and started adding better researched stocks from May, 2020, things look much better now and I have recovered most of my losses from 2017 and I have sold almost all poor quality stocks in this bull market and invested in strong names.

Learning’s during this investment phase.

Before investing in the market invest in learning about the markets and stock analysis. I would have never made the investments I made in 2017 if had had read only a few good investment books.

Never invest on random advices from telegram channels, twitter or even from Moneycontrol/CNBC experts. Borrowed stock ideas and conviction never helps. When you invest in your own ideas you either gain immense satisfaction if you are right or you get a good learning experience, neither of that is possible when you copy someone else’s idea.

Investing should never be stressful even during the worst of the days. Stocks that give you the most stress are generally the lowest conviction or random bets.

Portfolio Design Strategy

For me the first and the most important thing is the company’s management, there is no compromise when it comes to the ethics management team

I generally go for companies that have a good balance sheet with manageable debt, a good product mix with the ability to innovate.

Companies with a track of delivering on their promises

Portfolio

S.No Stock Name Allocation% Comments
1 ITC 10% Leader in Cigarates. Growing FMCG. Growth + Dividend. It’s more of an FD with the possibility of principal appreciation. High conviction
2 Sequent Scientific 9% Leader in Animal API. Change in management playing out well. Strong execution and innovation skills with huge tailwinds. High conviction
3 IndiaBulls Real 8% Change in management yet to play out. Huge land and asset base lead by the Embassy group. High conviction
4 Jubilant Ingrev 7.8 Valuation mismatch due to demerger. 900cr capex. Ethical management with good execution skill. High conviction
5 Jubilant Pharm 6.8% Undervalued at current levels. Good growth expected going forward. High conviction
6 Polycab India 6.8% Huge potential to grow. Gaining market share. FMEG can be big contributor going forward. High conviction
7 IEX 6.5% Leader in power exchange. Huge tailwinds. Growing market share in a growing market. High conviction
8 CDSL 6.2% Leader in a duopoly market. Huge growth potential ahead. High conviction
9 Marksans 5% This one is a past mistake. Still holding due to the kind of results that they have been posting. Plans to get into API manufacturing for captive use. Low conviction
10 Godrej Agro 4.8% Huge tailwinds. Rise in palm oil prices to benefit. Improving margins of dairy business. Good product mix. Decent valuations. Medium conviction
11 Pioneer dist 4.7% Arbitrage opportunity. Management is trying hard to improve margins and reduce debt. IPL franchise. Market Leader. Can become a cash cow going forward. Medium conviction
12 Hikal 4.5% Cheap valuations. Trustworthy management. Industry tailwinds. Medium conviction
13 IndiaBulls Housing 4.4% Cheap valuations. Rumours of stake sale. Low conviction
14 Federal Bank 4.4% Cheap Valuations. Good top brass. Good asset quality. Medium conviction
15 RPSG Ventures 3% They have a few good brands like Too YUM, Souled store, McCaffine etc. Stake in FirstSource justify current valuations. Low conviction
16 Granules India 3% Decent management. Cheap valuations. Reduced position due lower than expected results. Medium conviction
17 RPG LifeSciences 2.8% Decent Valuations. Good Management. Improving product mix. High conviction
18 Sadbhav Eng 2% Past mistake. No conviction. Will exit if a sudden up move comes given the governments focus on highways

Other Investments

  • GoldBees – To diversify and add liquidity to my portfolio. Current allocation is about 1% and I am slowly adding to it.
  • Health Insurance- For when stock investing becomes too hectic, just kidding. It is a must have and should be considered as an essential investment
  • ELSS- Will move this money to stocks when they mature next year. No investing in ELSS schemes anymore.
  • PPF- One of the safest and the best debt instruments with 0 risks and much better than FD returns
  • NPS- Aggressive 75% equity allocation. It has so far given atleast at par if not better returns than ELSS schemes. Additional tax saving 80CCD(1B) so no harm in saving extra 50k per year of not much.

There are a lot of things that I still need to learn like proper portfolio allocation, technical analysis, fundaments analysis and controlling my emotions. So I request you all to provide your valuable insights and feedback to my portfolio picks and on how I can make my Investment journey better.
@Malkd @hitesh2710 @gurjota @Malai_Subramanian @ranvir @harsh.beria93 @sahil_vi @MihirDam
Thank you

4 Likes

Most of your business are mid cap and small cap except ITC. Little bit aggressive allocation IMHO. You do have some really good business in your portfolio. Your portfolio is missing IT business. And the two platform business you own CDSL and IEX are good but needs continuous tracking due to the risk associated with it. Keep learning!

1 Like

Hey @d.investor … will be glad to offer some feedback.
Firstly as long as you have conviction nothing else matters. So don’t let me or anyone dissuade you regards your picks.
Secondly… try to cut your portfolio down to high conviction picks only. The reason I state that is if you plan on owning those businesses long term there will come a time when you’ll have to make a decision about buying more or selling when there’s a drastic 20+ percent crash in one of your names. High conviction picks would make you average down immediately since you would know you’ve got a deal on your hands… the low conviction picks will leave you second guessing yourself at those moments and will cause you to book a loss or exit early or not take advantage of a drop.
Personally I would cut my losses with sadbhav, rpsg,indiabulls housing, marksans and distribute that monet into your high conviction bets. Note that I know nothing about those companies… but if I had no or low conviction I wouldn’t be able to hold a company for long and would panic the moment the inevitable bear market returns.
You have some quality names like ITC, Jubilant, polycab, iex, granules in there that you could surely put more money in over those low conviction bets. You may suffer some short term loss but long term you’d be all the better.
The companies you have medium conviction in I’d advise you to revisit your thesis and study them thoroughly and either increase your conviction throught study or cut them loose too. There are so many options in the stock market… make sure you stick to high conviction bets and keep your money safe.
Also make sure your conviction isn’t directly proportional to the stock price… but rather to the actual company.
Good luck

2 Likes

Hello Dishant,

You’ve built up a decent portfolio. It’s good in hindsight that you began your investing journey at the peak of the bull run, no amount of knowledge gained from books beats real experiences of losses. I will be able to comment on your portfolio based on your return expectations. Do you have a market cap limit? What level of risks are you will to sustain? Like @Malkd mentioned in the previous post, I believe in high conviction bets as well (usually a 10*10 portfolio, no rebalancing until valuations become unrealistic). I also like to take the pyramid portfolio approach pioneered by Li Lu but you can also adopt the other approach of going all in and seize the opportunity, usually adopted by ones who are very confident on their analysis (a la pabrai).

Regards,
Gaurav.

1 Like

You have a couple of scrips of Indiabulls Group and the management is not having good feedback from market of late…

thank you for your feedback sir, I have a mid cap heavy portfolio and some good small and micro caps too mostly with reputed promoters. I feel they offer good growth opportunities and can give disproportionate returns if that the managements walks the talk and delivers on their promises. I don’t have any IT businesses as I have no understanding of how to value them and how to look for companies with good growth opportunities, wanted to invest in Happiest mind but it went up too quickly. I would love to learn more about IT businesses and how to select a few to invest in.

@Malkd thank you for your feedback, I have been keenly following your portfolio for quite sometime and I am quite inspired your investing methodology. Apart from sadbhav most of the stocks are in positive or at a minor loss, although i will sell them out when I get a good entry in high conviction bets.
Medium and low convictions bets are the ones which I keep tracking frequently to check for any positive or negative signs. I am still trying to build an investing methodology and I might need another 5-10 years, there is so much more to learn and I am grateful for the insights people such as you share on valuepickr

@Gaurav_Sheregar starting out during the peak of small cap bull run forced me to look beyond stock prices and short term gains and that lesson has helped me in getting good returns from good company stocks that i would love to remain invested for long term. I don’t usually care about Mcap, but a good management is an absolute must for me. My high convictions stocks make more than 60% of my portfolio and I am willing to take short term risk if I believe in a companies long term story and I generally go all in on such stocks (Jubilant ingrevia being the latest one, where I was sure about the management’s ethics, industry tailwinds and the company itself )

thank you all again for your feedback, really looking forward to a great learning experience from your feedbacks.