Help on my Portfolio

Hi all. Very new ( just 4 months into the market) please have a look at my novice portfolio (would like to hold till 2020) gathered from reading and watching expert interviews. Im not good at reading financials of the company. It has become highly diversified now, but most of the companies here are growing companies and dont know which to let go. I have 100 shares of all the stocks listed below. I would like to streamline my portfolio. Please give me an insight to which to sell about 5-8 stocks
(please dont tell me sell all, i would be heart broken).

IT (my buy price)
Onmobile Global (127)
KPIT Tech (140)
Zicom Electronics (115)
RS Software (68)
Trigyn Tech (89)
NIIT (87)
Tanla Solutions (41)

Defence
Astra microwave (130)
Pipavav Defense (72)
Zen Technologies (88)

Transport
Ashok leyland (95)
Tata Motors DVR (257)

Industry
Balaji Amines (133)
Kanoria chemical (70)
Sudarshan chemical (95)
Elgi equipments (125)
Greenply Ind (182)
Ruchira papers (59)
Jain Irrigation (65)
Ujaas energy (26)

Pharma
Alpa Lab (66)
Camlin Fine sciences (95)
Fortis Healthcare (166)
Gufic Bio (Avg 90)
Granules INdia (144)
Jagsonpal Pharma (Avg 85)
Marksans Pharma (Avg 90)
Nectar Lifesciences (55)
Syncom Healthcare (16)

Consumer
Arrow Textiles (89)
Future Retail (162)
FCEL (23)
Maxwell Industries (57)
V2 Retail (60)
Tara Jewels (60)
Indiabulls wholesale (15)
KRBL Ltd (215)
Tata Global beverage (142)
Kwality (113)
Indian Hotels (105)
India cements (84)
HSIL (270)
Talwalker (240)
Cox & Kings (215)

Auto ancillary
Gabriel India (92)
Greaves Cotton (124)
Jamna Auto (145)
Skipper Ltd (160)
Talbros Auto (104)

Infra
Axiscades (250)
Jindal steel (60)
Jyoti structure (16)

Logistics
Snowman Logistics (90)
TCI (240)

Realty
Ashiana (150)
DLF (98)
Anantraj (36)

Im looking into these stocks from reading a lot into Valuepickr. But dont have so much money to deploy. Can you suggest the best 3-5 companies to invest from the below keeping in mind the current market situation (to buy after selling a few from above).
Atul Auto
Amrutanjan Health
SSWL
Mayur Uniq
JB Chem
KSCL
Plastiblends
Tube Investment of India
Harita Seat
Somany ceramics
Reliance Infra
Ipca Lab

Need serious help… much appreciated and would like to thank this forum for their great work!

Hi,

Sharing my observation- nothing personal here. Nor you should treat this as stock buy/sell recommendation.

Too many stocks with trading bet approach & not value investing. What is your objective. you said you want to hold till 2020, are you confidant all these will survive or do well in next 5 years. Suggest first screen the stocks basis various parameters like PE, PB, Sales & profit growth, return & profitability, operating margins. Select few who have great past history. Out of that select few whom you think will do great in next 5-10 years. Extensively read VP threads, do some financial number crunching- you may get basic knowledge from internet.

Sharing the ranking as per my analysis…

2 Likes

My 2cents :
i) If you are new to investing in equity, first please consider educating yourself by reading a few books on investing like : i) One up on wall street - Peter Lynch, ii) Intelligent Investor - Benjamin Graham, iii) The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy - Robert G. Hagstrom iv) Thoughtful Investor - Basant Maheshwari (helpful in getting an Indian context to investing).

ii) When you are new to investing, you do not want to trouble yourself by collecting a bunch of 55 companies stocks, Why not invest the same in a diversified top performing one or two Equity mutual funds instead ?

ii) Its not necessary to bet on every sector or upcoming company to make money. After all, not every company in your portfolio will all go up together. Over a period of time you will find some going up, some down and some may stay where they are. In the process, you are bound to lose sleep and effort, keeping a tab on their price movements rather than focusing on what the underlying companies & their managements are doing in their business.

iii) Portfolio allocation: As has been often repeated by our senior members here, if your intention is to create wealth for yourself, please consider allocating your capital (money) to a focus group of not more than 10-12 stocks. For an average investor, since the amount of time and money at one’s disposal is limited, any allocation less than 5-8% of the total portfolio is not going to be worth it.

iv) Although it may be heart-breaking, it may be well worth your time and effort to bring down the number from 55 to say, 8-12. Consider allocating serious capital (say, 12-15%) to your top conviction bets spread across 2-3 sectors and allocate less to those lower in the category. Think of money lost in this exercise of portfolio restructuring/rebuilding as ‘tuition fee’ and take it off your mind. All the very best.

3 Likes

Are you still positive about Marksans Pharma? Issues- a) Pending UKMHRA observations. b) failing growth (Dec 16 Q net profit is half of Dec 15 Q). c) Fy 15 net profit 109.4 C, eps 2.64, Expected net profit Fy 16 110-115 C, eps 2.6-2.7. d) current correction more than 55% from high of 115.
Background- US FDA gave clearance in Sep15, UKMHRA review in Nov 15 with some observations. On 18 th Dec 2015 company replied about observations, so far no reply. Management says issues are routine & not serious, no data issue as per the management. 99% export company with major supply to UK & other European countries. Soft Gelatin Capsule making process is supposed to be their major selling point in USA. Pending several ANDAs in USA. Management expects 4-5 ANDA clearance in 2016 calender year. Severe correction after UKMHRA observation. Current Q result came post- market on 12 Feb 2106 which were very poor in spite of rupee devaluation significantly. I am new to forum & not much net savvy. Request for guidance by forum members if it is a HOLD or SELL. Average purchase price Rs.90/-. About 10% of my PF.

Hi there! I personally find no issues with number of stocks in your portfolio provided you have a reason for choosing them. Few things I suggest you doing:
Go through annual reports of your company once a year. Even if you dont understand numbers, please try to read and understand management discussion analysis. Some companies provide wonderful additional info about company and the sector it operates in. Few basic things which you can calculate are sales/revenue/ top line growth, Net profit/bottom line growth, Return on Equity, Return on Capital Employed, Book Value Growth, Dividend Growth, Capital structure changes. If you are not able to calculate any of these, there are some websites which publish those data. One more thing, Always recheck data from those websites. If you have decided to take direct equity route than try to understand as much as you can. Last thing I would suggest is not to invest based on tips or borrowed conviction. Happy Investing. Good luck.

1 Like

Thank you for your replies, much appreciated.

As advised, i took the plunge of shuffling my stocks and (i would like to believe) would not get a better time to do this.

High conviction stocks (with the help of esteemed VP site)
Atul Auto
Shilpa Med
Kaveri seed
Kitex
Astral poly
Avanti feed
Mayur Uniquoters

Others -
ABFRL
FRL
Himatsingka seide
Ashapura initmates
Indian terrain
Kwality
SKMegg
Tata Global Beverages
Greenply Ind
Orientbell
Cox and kings
HSIL
Balaji Amines
TCI
Axiscades
Skipper Ltd
Tatamotors (DVR)

Pharma -
Suven lifesciences
Granules
Gufic Bio
Camlin finescinces
Marksans Pharma

Bought just a 100 of each, will buy more as I get a better understanding of the market.
(Dont deal with Banks and finance companies).
Let me know, if any thoughts please.