Harsha's Portfolio

Q&A: Questions & Answers Portfolio Q&A
1

Hello Value Pickrs,

This is my first post on this Forum and I would like to seek your feedback on my existing portfolio as to how it looks. Some of these shares I own for a pretty long time and ofcourse some recent ones as well.

Here's my list:

Company Invested Price % Allocation
Coal India 233 13%
Kesar Terminals 295 16%
Kovai Medical 325 18%
MOIL 357 4%
Oberoi Realty 254 21%
Power Grid Corp 52 2%
SBI 1506 6%
Shree Ganesh Jewellery 113 5%
Shriram CityUnion 394 16%

Appreciate your valued feedback on this.

2

Coal India and MOIL has never looked good to me. They are government owned and regulated, deals with commodity and is cyclical.

I would also avoid Shree Ganesh Jewellery.

3

In terms of % allocated I have Oberoi Realty for sometime now…however has not yielded any decent returns. Nevertheless I’ve always received feedback to hold onto this.

What would be your take on this.

4

Hi Harsha, I do not see any’Compelling’ case either in terms of valuation or business fundamentals in case of Oberoi reality. No point holding it unless you know of any. Divide the investment into something like NESCO, CAN FIN, MAHINDRA LIFESPACE if you want to stick closer to the housing/reality theme, should easily outperform.

Shree Ganesh Jewellery will be no for me. SBI, Coal India, MOIL are decent companies, Powergrid is good. But IMHO, some of the growth stocks discussed in VP should easily outperform each one of them.Lupin, HCL Tech, HDFC twinsare better if you want to focus mostly on large caps.

5

Thanks Gaurav…Oberoi has been a big drag to be honest. I’ve invested nearly 20% of it but have not made any progress on it. Time to switch.

Shree Ganesh in fact has eroded quite a bit, if you see I picked at Rs. 113.

Better late than never I guess. Both these have actually performed badly in comparison to the others which have pulled up my portfolio.

6

Hi Harsha,

I am not a senior so please consider other members advice. I would still try some.

What is the CAGR returns you have in mind for coming 3-5 years with this portfolio? I don’t see many of your companies doing 25% growth. I also think that there are much better alternatives for some of your companies with same or less risks.

Coal India - Considering it’s size, this will have tough time doing 10-15% growth

MOIL - As pointed above, government owned, regulated, cyclical.

Shree Ganesh - A big avoid.

SBI - It’s good bank but since it’s largest only 15-18% growth looks realistic. Have a look at HDFC bank for better growth, better risk management and better everything else.

You can also let go of Power grid and Oberoi in my opinion.

Even at current market prices, there are good businesses that you can consider buying if you decide to sell some of your stocks. HDFC Bank, HDFC, Canfin Homes, Repco, LIC Housing, Shriram City (adding your existing %), Page Industries, ITC, HCL Tech, Hawkins, IndusInd Bank to name a few.

7

Shriram City Union: Stay Put.

Kesar Terminal, Kovai Medical, Oberoi: No Opinion. I do not track them

SBI, Coal India, MOIL, Power Grid: Do not like PSUs.

Shree Ganesh Jewellery: Totally avoid, outright fraud. Cooked up books to show huge EPS without cash flows and finally said that an European client defaulted. One of those cases where the promoter should have been behind bars.