Kalyan Kapse Portfolio

Hi All,

I am new to valuepickr but tracking since last year. This is my first post. I want to share my portfolio here

Bank of Baroda
Panjab National Bank
Muthut finiance
Indraprastha Gas
Jagran Prakashan

Like to here from you guys. Any changes required?

Kalyan Kapse

Hello Kalyan,

It would be more helpful if you can share the % of allocation to each stock, your investment thesis for each stock and buying price for each stock.

Get some solid names like hdfc bank gruh finance cadila finance pi industries. remove pnb Wockardt muthut.

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PSU banks are a tricky lot. One doesnt know how much write off and bad news are going to keep coming in them.

I think you can do better by incorporating some better quality stocks.

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@kalyankapse @hitesh2710 Agree with Hitesh! the quality of the portfolio could improve

a. Valuations for a lot of good companies are expensive now so be careful if you decide to add them
b. PSU banks have huge capital infusions staring at them and also NPA’s on their balance sheet. Would advise looking carefully before investing (read this http://getpocket.com/redirect?url=http%3A%2F%2Fwww.moneycontrol.com%2Fnews%2Fbusiness%2Funited-bank-tops-listhighest-bad-loans-among-psu-lenders_1688421.html)

Hope that helps


Thanks for your input. Here is my conviction about PSU about why it is part of my portfolio

Bank of Baroda

Major focus on Maharashtra,Gujarat and Uttar Pradesh.
Strong fee based income compared other peers in PSU Banks
NPA is among the best in PSU banks.
Clearly focused in its strategy of increasing the quality of its asset and not focusing on asset growth
With the current performance it will take at least 5 years to decrease their Gross NPAs back to 1.4% levels
Next 2-3 quarters will have weak earnings due to bad assets and this provides opportunity

Dear All,
Based on the valuable inputs i have modified my portfolio as below



You have included some quality businesses in there like PI, Repco, Eicher, MPS, etc.

But have you bought all these over the last week? If yes, I wouldn’t expect significant upsides in your portfolio in the near term. In fact, some of them are valued so highly that one poor quarter can lead to 15-20% downside.

I’m hoping you also looked at the valuations when buying. There’s a fine line between paying up and paying too much for growth.

My opinion, and I reserve the right to be wrong.

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If you are expecting next 2-3 quarters to be bad, will it not be prudent to move your money in a quality growing company? Even though you pay a premium, earnings will catch up somewhat in next 2-3 quarters and in the long run a quality company will definitely beat a PSU.

Agree Nikhil

Gurjota yes I have bought last week and want to hold for next 3 years at least.Any pointers to sector/stock so that i can spend time on valuations and update my PF over few months.


A valid point Gurjot.

As Warren Buffett said, “The investor of today does not benefit from yesterday’s growth.”

Kalyan, I do not want to discourage you. But I must mention that when you are paying premium for a stock, like you have paid for PI industries, you should be well aware of the risks associated.

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The ideal thing before investing is to have a short one page or so of investment thesis on each of the companies.

just to give a brief idea,

I usually follow,

idea about what company does, sort of introduction and then slot it into the category of business.

What excites me about the business or potential triggers

Brief financials – no of shares outstanding, market cap, promoter holding, pledging or not, debt, return ratios, dividend history etc . . all these of past few years.

potential negatives and positives.

Investment theme. what kind of opportunity I see here…

Most of the businesses u have selected are quite decent but you should preferably go thru such or some similar exercise (with which you are comfortable – whatever works for me need not work for everyone and hence one has to try and find a comfortable style)


Thanks Hitesh for your valuable input

Sir any note on how do you take care of valuation. I realize there cant be one straight formula but just want to know your opinion on this.


For valuations I have taken to heart a saying

Beauty lies in the eyes of the beholder.

For Page, 50 PE could be considered cheap whereas for mediocre companies like PSU banks, even 10-15 PE may be considered expensive.

I think the topic of valuations would take a lot of words. But we have a thread on it on THE ART OF VALUATION which provides a good idea on how to value companies.


Thanks for replying. I found the below thread on valuation