The other stocks in my Longterm portfolio are …
IEX(Avg 135) : - Great business to have for long term. Can become a compounder plus dividend stock over the years as there is long runway and this one has the first movers moat. New exchanges may take some market share but I do not see any other exchange beating this one .Regulatory threat is a thing to keep an eye on but with so much focus from Gov on improving the volume of electricity trading ( reducing long term PPA)c, I do not foresee any regulatory move that will hobble the exchanges. Plus IGX may demerge someday but I am not expecting it in next 3 years .
Borosil Renewables(Avg 155) :- My first good smallcap pick. Started buying at 85 rupees and added till 220. I have booked some profit and taken out my actual capital so whatever is left is free. This is to ensure that I can stay on it till it reaches its 5 furnace target in 2025 . I will not go into the rationale of this one as the VP thread makes it abundantly clear and I had bought this back in Oct 2020 based on that thread.
Polycab(Avg 1215) : - Very good B2B company which has achieved scale, built up a good brand name , has ambition to scale up & out ,into the third generation of business with good succession planning in place . It meets my criteria of a company which can grow for a long time and still has not reached its true potential .
Polyplex(Avg 1561) : - Great dividend company , no debt as such, truly international, good promoter who may sell out to PE farm(Not sure if thats good or bad…seeing essel propack). While many may call this one a commodity company, its past 5-6 years performance does not say so. I am betting on the possibility of a longterm turning of fortunes in this sector. I had actually started buying at 1130 levels and have booked some at 70% profits so the avg. cost seems high.
Deepak Nitrite(Avg. 1863) : - Very experienced and dependable promoters. They are very good at what they do. They are one of those companies which gets stronger during downcycles .Import substitution , excellent backward and forward integration and good capital allocation are factors as well.
Laurus Labs(Avg. 410) : - Again good management ,ambition and proven ability to achieve in a sector where as a country good times are supposed to be ahead. This company is continuously moving towards higher margin business. As a pharma company it has its risks but I believe that this one can be a good long term bet .Again, booking a bit of profit has resulted in higher holding average .
Globus Spirits(Avg. 876) - Ethanol ,ENA play. This one has good capex plans(and assurance to sell its products), experienced promoters, predictable and easy to understand business model, lower PE than it deserves .The consumer facing business is in early stage and may become good later on. I had started buying this at below 600 and recent addition during this fall has added to the average holding price.
Chemplast Sanmar(Avg 605) :- Import substituion play as 40% of PVC demand is met domestically. Chinese cheap PVC production will reduce and stop by 2030 as those plants use the old carbide method and have to convert or close . Company is trading at a very low valuation . Its getting full commodity business valuation even after having specialty chem revenues . Old parent company sins making it harder to get good valuation. But frankly, its not the same company as the one listed in 2008 . It has Fairfax group with 25% holdings and has newer high margin businesses which was not there in 2012 .From the concalls management seems decent enough.
I also have Asian paints,Divis Labs,Pidilite in my portfolio but not sure yet whether to accumulate or play swing incase of a 40% return in a year .
Apart from these , I also have a handful of stocks I picked recently but since it takes me some months to build up conviction to hold, I am not sure how many of those I will be able to hold 6 months down the line .
