ValuePickr Forum

Hitesh portfolio

Hi @hitesh2710 Sir,

Do you still hold SKM egg products or was it your short term pick ? What are your current views on SKM egg Products ?

@hitesh2710 your views on hexaware whether buying opportunity during current weakness and also on SpiceJet at current price and with jet likely to lose market share and eventually fold up .

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@hitesh2710

Dear Hitesh ji,

What are your views regarding Magma Fincorp post its quarterly results.

Thanks

@sarthakkumar19_

Magma results seem to be decent and on the lines of what they had indicated in q4 fy 18 concall.

Asset quality improvement is as expected… Its heartening to see the figure for direct sales going up as promised.

Overall much along expected lines.

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Sir,
1)What does your experience says on allocation of stocks in portfolio?It should be <5 stocks with more concentration or more no of stocks with lesser concentration?
2)How do you allocate for yourself?
I am in market since 1 year and what I learnt is that if you have many stocks with less allocation your risk will reduce but your returns will also reduce.
Like,if I have only VIP Ind invested 1L 1 year ago,it wid have been apprx 3.5L at present.But,if I divide this 1L into 10 stocks with 10% allocation in each including VIP,it wud have given 10-15-20-25% return with VIP becoming 35000.But definitely there would have been risk with only VIP that if it would have went down I would have lost of all huge 1L.This risk would have reduced with dividing 1L into many.

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@jvpatel87 - Towards a Capital Allocation Framework!

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Even if one holds 15-20 shares of quality companies , he will enjoy magic of compounding provided he remain invested as long as business and Balance Sheet is strong. Definitely returns will vary with a concentrated portfolio but so is the risk. I believe it depends only on Individuals capacity and risk taking ability. I too have a little concentrated portfolio of around 10 stocks. I invest only that money which even if went Zero , i won’t mind. I don’t even think that it is my money after investing. Reason being i have regular other sources of Income like Salary , Business and Rental. So , If i earn 1 Lakh a Month and I save around 60 Thousand , I will invest 35000 every month in Market thinking that My savings was only 25000 which i keep as Emergency Fund. What i want to convey is that the allocation and Concentration of Portfolio depends on a Person’s risk taking ability.

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@jvpatel87

About portfolio concentration vs diversification, the debate is endless and futile. It all depends on the type of investor one is. Some guys are ok holding 40-50 stocks while others limit themselves to 12-15 or some even less.

About myself I usually hold upto 12-15 stocks. Max allocation I cap at 15% of total portfolio and minimum at 5%. This strategy has worked very well for me till date and I cant see myself holding more than 12-15 stocks at a time.

I think portfolio allocation is equally important as stock selection in the overall scheme of things while investing.

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Hi,
The maximum level of allocation is followed for investment or the current level of portfolio. Would you comment on the better level of management of maximum allocation in day to day changes and increased allocation beyond our set target?

@umesh.min

I use the filter of 15% maximum at the time of initial buying. After that if the stock price runs up I allow it to run up and keep riding till I feel there is extreme overvaluation or froth. If the latter happens I used to sell the whole holding but of late I am trying the idea of trimming the holding to comfortable levels.

I think if the company with max allocation keeps performing quite well in terms of financial performance its ok to keep riding without bothering about how high the allocation has gone post the run up.

The confusion happens when we feel that after the run up we feel that there is not much juice left even after factoring in next 2-3 years performance. But after some mistakes made in stocks like page, gruh etc I have realised that after some trimming it might be prudent to allow the position to remain intact.

Multibaggers make a difference in portfolio performance only if full position is allowed to continue throughout the journey

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How do you see PEL? Some breakout today after long consolidation?

What do you think PEL from a techni funda perspective for long term?

Thanks.

Dear Mr. Hitesh,

What’s your view on ICICI Prudential and Rallis India from an investment perspective of about 4-5 years. I believe both could be multi-baggers in the years to come. Thanks in advance !!

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@harshadmehta

I track and like rallis india. Icici pru can also be interesting but i dont have a lot of knowledge of insurance companies so dont know where to slot it.

Rallis has promised a lot since past few quarters but hasn’t delivered fully but i think around 200 a lot of these disappointments are priced in.

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@aammiitt2

I dont have access to my charts as I am on vacation but I think after a brief correction PEL has made a breakout again so it looks headed higher.

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@hitesh2710 ji, what is your view on L&T technology services (LTTS) and Sterlite Technology?

LTTS had no takers during the IPO but has caught fancy of market off late and company is one of the leading E&RD companies in the world with presence in the niche areas like IoT, Robotics, Smart Offices and transportation. With upcoming opportunities in 5G and Automotive i feel they have lot of leg room to grow.

Sterlite Technology even though costly at present is a pure data play considering the data consumption boom.

Kindly share your views.

Regards,
Suhag

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Hi Hitesh,

Hikal ltd came with bit good set of numbers but there interest cost increased and they keep talking about investing heavily as they see demand picking up. Do you still track Hikal?

Hester Bio-science came with the good set of number. Do you track it?

Your views would be really helpful.

Thanks,
Milind

Hi hitesh
Am a newbie struggling with valuations.
Just read Pat Dorsey. How Does DCF method consider reserves and surplus in valuating company

Hi @hitesh2710

Had a couple of queries.

  1. Do you think the EW count for Avanti has changed from what you initially thought? (the B wave of A-B-C isn’t quiet apparent?) If so could you share your views on it?

  2. From an overall market perspective it seems like we are heading towards a top (all the macros turning sour, interest rates firming up both local and global, high valuations, narrow leadership in select stocks) , the only thing missing is the euphoria. Would love to know what your EW charts / technical views for major indices look like.

Thank you for taking the time :slight_smile:

CHeers!
Niranjan

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@niranjan13

Avanti as you mentioned is not showing a typical B wave of an A-B-C correction. But as in life, in charts also we dont get everything perfect.:slight_smile: But my guess is that post the fall from 1200 to a low of 852 in March 2018, A might have been completed. After that it went up to 1000 in a swift upmove in a small a-b-c formation. And then what is going on can be a C wave down which i guess might take out the earlier lows in region of 390 or so. Its a wild guess only but thats how I see it. People are still gung ho about the stock and there is no apathy, disgust which we find in stocks forming bottoms. So maybe some more time to go before cherry picking.

Regarding overall markets I think we might be heading towards a top. A lot of factors seem to be on the verge of converging in next few months. Rising interest rates, rising dollar, and crude (in Indian rupees), state elections in December and finally the big Loksabha elections in May 2019. I think a combination of few of these could be too much for markets to sustain at such high levels

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@malthankar,

Hikal has shown decent numbers since past few quarters after having flattered to deceive for a couple of years. I had bought Hikal before the split happened some time back. Exited recently after the run up as I dont consider it a a great company. Its a good company having a good time.

I dont track Hester.

@suhagpatel, I dont track LTTS. Sterlite technology does look interesting looking at the data boom. Even other fibre optic players like Vindhya tele etc look interesting though I havent looked at any of them too closely.

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