Dear all,
I am a 20-year old with a long time horizon of 20+ years. As a result of my ability to take higher risks, my portfolio consists of several mid & small-cap growth stocks.
Would really appreciate feedback and guidance from the community.
Below are the stocks and a brief on why am I investing in them.
DELTACORP- Upcoming industry of gaming, increase in revenues with rise in tourism.
CHAMBLFERT - high roce, roe and a low PE of 11. Has been consistently increasing both top and bottom line at a good rate. Closed down the software business to focus solely on the fertilizer business.
TATAMOTORS- High growth prospects due to the first mover in the EV space. Has an entire ecosystem setup to boost the EV industry and is dominating the space currently. In addition, a market leader in CV and gaining prominence in CV due to better offerings. The financials and heavy reliance on JLR are a concern.
TATAPOWER- Again, as a result of my outlook towards the growth of the EV space and the projects and vision of TATA in renewable energy.
TATASTEEL- I am bullish on steel as a commodity and believe that demand for steel is going to spike in the coming years. The reason being that, after COVID, the government is spending heavily on infrastructure development, thus generating high demand for steel.
THYROCARE- It is a 5500cr market cap company with a huge potential to grow in the diagnostics and laboratories space. Its MOAT is its tech infrastructure which would help in expansion and growth in the future. The company has been steadily growing its top and bottom line both at an impressive ROCE.
KPITTECH- KPIT is a tech company in the automobile sector. It has grown exponentially by tripling its revenues and profits in a span of 2 years. Has huge growth potential due to its investment in R&D and the need for software in new-gen automobiles(features such as ADAS etc).
IDFCFIRSTBANK
REDINGTON: One of the two key distributors of electronics in the country. Good growth in revenue and profits, operates in a very low-margin industry. Distributor of big brands such as Apple, Samsung HP among many others. Due to a threat possessed by rise in online marketplaces, has pivoted to the cloud business.
GREAVESCOT: Growth prospects due to its rising presence in the 2 and 3 wheeler EV space.
LAURUSLABS: Leader in the API segment, high growth prospects. Consistent compounder with high returns on capital.
KNRCON: Again due to the spike of government spending in the infrastructure space. A key player of road development, flyover construction, etc.
I am from steel Industry. For tata Steel i am not that positive as they have Burden of overseas venture and thats a negative for them.
Secondly, even though they have had captive mines for decades and still couldnt make gud profits, its even more difficult for them with rising input costs on all fronts.
Laurus has been working towards shifting their reliance on API to contract manufacturing and FDF.
good to know about Redington!
Coming to IDFC First Bank, I believe they can benefit from the FinTech revolution by partnering up with companies especially in the domain of credit cards.
I have seen your growth portfolio and I am confused to see cyclicals like CHAMBLFERT and TATASTEEL.
These type of company’s stock price more related to demand and supply of underlying comodity. So in growth portfolio we shouldn’t put these type of company.
At the outset, pls ensure that you have set following principles in place :
Set STOP LOSS - upto 20% or depending on risk appetite. Never marry a stock and move out with loss if needed, Be rigidly disciplined. Re enter if situation improves. Our job is to make money and remain detached. A stock is my friend if it performs and NOT a friend if it does not perform. A retail investor like us have no role in designing future and it is best to go with market evaluation (although sometimes manipulated). Going against market can be badly detrimental to health of portfolio.
Review basket every 1 or 2 months. I find defensive sectors like IT space is less represented.
You could think of change in portfolio mix - where 60 to 75% should be on very long basis and upto 25% can be in emerging sectors or sector in current demand
Except for Redintgton and KPIT, all other stocks are having challenges in recent performances and are best avoided in current volatile scenarios.
On a rating of 1 to 10 where 1 would be low and 10 would be high , the rating of above composition could be around 4.5 to 6.
But many good companies like bajaj finance etc do go down by 30 to 40% on a regular basis. If each time for every 20% drawdown, its sold then how can we find multibaggers?
