Ganesh M Portfolio

Hello Team,

Trying to add a question 3rd time now as last 2 questions were removed from forum without any updates.
I’ve been investing in MF since last 7 years or so and slowly started to invest in stocks directly. I am still learning so only considering re-known brands to invest until I am sure about the path I am driving.

Below is my latest holding and investment thesis as of now. As they are mostly large companies you can see I dont need to worry too much about management and corporate governance (could be exceptions for sure). views and suggestions are invited and would help me grow in knowledge.

I am investing for long term not looking for exit in next 5 years minimum.

Thanks in advance.

Company - Current weight (%) - Rationale

  1. Dmart - 13%
    Retail play, see ample growth opportunities, holding from 4 years.

  2. HDFC life - 8%
    Emerging sector, can see already it is picking up share from LIC and growing rapidly, holding from 4 years.

  3. SBI Card - 5%
    Holding since IPO, can easily see good growth opportunity. Backed by sbi which provides huge benefit.

  4. HDFC bank - 6%
    Largest private sector back. As privatization is going on for PSU, believe hdfc bank will surely gain share from other banks in long run.

  5. ITC - 11%
    Cigerrate, FMCG in building, Agri businiess after agri laws implemented recently. Getting good dividends right now. waiting for value unlocking to happen.

  6. Nestle - 3%
    FMCG Giant, monopoly in baby foods, maggi etc. happy to live with even moderate growth with this company.

  7. Bajaj finance - 5 %
    I was confused with HDFC and Bajaj Finance and picked up this as had to add one NBFC and looking forward steady growh in Bajaj finance. Don’t think there is any problem with mgmt at
    all.

  8. Pidilite - 5 %
    Unique player, wide and diverse range of products, almost all products are monopoly and no compitator who can compete in near future.

  9. Titan - 4%
    Biggest consumer brand, ample growth opportunities, good management

  10. MGL - 8%
    Growing sector. Moderate growth, good dividend, expanding rapidly, preferred this over IGL due to better ratios and dividend yield.

  11. IRCTC - 7%
    Monopoly, no competition, there is risk of govt policies however holing since IPO and sitting on good gains. Ready to exit of policies changes in future.

  12. APL - 3%
    Largest paint company, good brand recall and great management.

13 - Maruti - 8%
Largest auto player in India. Good company for long term however I will be getting out of this as I think too much competition is coming across in this sector.

  1. RIL - 6%
    Betting on Retail and Jio digital play. Oil business is cash cow. Debt is concern however I don’t see it that big issue right now after recent FB and other deals.

  2. Relaxo - 2%
    Expansion story, good brand building going on and hopefully will be overtaking Bata in few years.

  3. Power grid - 2%
    Recently added, basically looking at this as debt investment as will be getting tax free dividends and there is slow growth possible just in case. Debt is not an risk here as this is backed by govt and essential service. There is very low competition and don’t expect any new player so quick as this is asset heavy business.

  4. Cash - 4

Watch list

  1. Jubilant foodworks
  2. Cupid
7 Likes

why ITC in you portfolio

Curious why you happy with even moderate growth in Nestle but would expect more with some other company?

Dividends are taxed as per your tax slabs, if I am not wrong?

1 Like

ITC, I am seeing and future FMCG company. currently distressed due to ESG theme and sin stock perception. however company has got very good history and also very diversified. I dont see any risk to my capital here plus I get good dividends.

Nestle - the way I am looking at this as monopoly in babyfood and coffee. As it is giant already and running at high valuation I am not expecting it to be multibagger however sure though it will provide decent growth for years to come.

Regarding, Power Grid - yes dividends are taxable and I am happy with it. there is virtually no compitator here. even one good news wil take stock long way.