It’s been more than 6 months now. I did my best to learn more about equity investments in last 6 months and did gain more knowledge via this helpful community.
I’m now feeling more comfortable with direct equity investment. I’ve recently sold all the units of my 5 mutual funds holdings and stopped regular sip in them. Gained good profit in them. STCG will be applicable here but profit is still good. I’ve kept ELSS Mutual fund Schemes as I don’t see any other better tax saving option than it for now.
I’ve tried to build a small portfolio also in these months and will like to put it forward to ValuePickr members for their valuable opinion.
My Current Stock Portfolio with all the details: http://prntscr.com/ccx3vh
Idea behind investing in these stocks.
1.Udaipur Cement Works: Cement production to get started in December, backed by J.K. Lakshmi group, one of the most respectable group in India. I’m betting on a turnaround.
2.Omkar Speciality Chemicals Ltd: Invested during the pledging fiasco. I’m confident on the management and believe they can make this company a bigger company in the coming years.
3.Mercator: They are narrowing the sectors they are in. Company financials has improved and expecting more improvement in the coming quarters. I expect a major turnaround here. Eicher Motors increased their growth when they sold of their multiple ventures and streamlined their businesses. Ofcourse, it can’t be compared to Eicher but I see a good potential for the long term.
4.DHFL: One of the first stock to catch my attention due to it’s cheap valuations during Feb`16. Housing sector is blooming and the company is catching the attention of investors. Seems to be a good ride ahead.
5.Torrent Pharma: Company fundamentals are looking good. They are trying to improve their reach in Brazil and other countries. They did a good job during Abilify drug and believe that they will be able to execute such further profit making drugs export. They are filling up ANDAs to try to increase the number of drugs they can supply. My whole family is in Pharmaceuticals and that gives me more confidence to believe in Pharma Stocks. Maybe this company becomes the next Sun Pharma of India.
6.Alembic Pharma: I’ve the same thoughts here as Torrent Pharma due to similarity in both the companies.
7.Waterbase: Waterbase seems to be a growing player in the Shrimp Industry. Increased capacity and the merger will give it a boost. It may not replace Avanti Feeds but I expect a higher grower rate for it than Avanti Feeds.
8.HMVL: Good readership in India, upcoming elections and cash in hand made me invest in this company. I believe the company will start utilizing the cash and then we can expect a higher growth rate.
9.Allsec Technologies: Company is making a turn around. Fundamentals looks good as well.
10.Jagran Prakashan: Same thoughts as HMVL but it looks more attractive than HMVL due to it’s radio biz and higher readership. I feel vernacular newspapers are here to stay in India for a few decades without any issues.
I’m not looking to sell any of my investment until any company starts going down or I need money. I wish to stay in the market for long term to grow my money. My strategy is to invest only in Small caps and mid caps. I’ll keep putting all my web development company income in it. I know it is a high risk strategy to have majority of your investment in Equity and that too mid-caps/small caps but I believe in high risk/reward ratio theory. I know I still don’t understand anything technical in stock analysis, haven’t faced any bad patch such as 2008 or haven’t seen the portfolio companies hitting LCs or frustration which you face when your company isn’t moving for months. But in any case, I’ll stick to my strategy. Even if I lose all the money, I’ll restart from scratch.
My major concern right now is that how do I proceed now with further investment. Most of the mid-caps stocks looks expensive right now. I’m not having the confidence to increase the investment in existing stocks which have rallied quite a bit. I’ll really appreciate if any body will put his valuable suggestion or opinion about my portfolio here.
Thank you every body for your valuable time here in the discussions and advising new-comers like me.