Small Cap Portfolio
Hello, My name is Kamlesh and I am 21 Year old, Free lancer
I wish to pursue CFA very soon
Thanks to valuepickr forum for providing such a great platform,Always looking to learn more from everyone here and help where i can
I have had few good picks in last 2 years, Luckily and had a fairly decent experience with the mid caps as well as small caps also in past (Maybe because of the bull market, Or its both ways study + the market )
Eg. Deepak Fertilisers, Tata Power, IEX, Sasta Sundar, GMDC, GAEL and so on
(Still holding a few of them,Free shares)
I have been learning about markets since 2 years and here I will discuss my approach and the small cap portfolio I have created
I am quite good with quants, My approach consists both fundamental and technical analysis and I firmly give importance to both equally
Fundamental approach is I look for undervalued small cap stocks which have potential of future earnings and belongs to atleast a decent industry (DCF,Reverse DCF, EPS-PE etc.)
Also it consists behavioural finance and its traits for me to determine what is undervalued and what is not (Credit - “Parag Parikh’s book Value Investing And Behavioral Finance”)
the other investors Joel Greenblatt, Graham, Pat Dorsey (Helped me in understanding various sectors in initial phase)
Then I move on to the technical approach, I am also an Elliot wave practitioner and have had good experience with it (Although not always) and sometimes i use my little knowledge of harmonics aswell if i deem fit, Thinking to learn Gann aswell in future
The technical approach is EW mainly and with bare to no indicators,Waves of different TF’s even hourly just in case there is a significantly less chance of a error combining that with the fundamental analysis i come to the conclusion
I believe in a concentrated portfolio
Exiting strategy is based on whether the thesis have gone wrong (Complete exit) or only if there’s a bigger correction that i see as per my TA knowledge (Then partial exit and close tracking)
Here’s my portfolio
Small Cap Portfolio. Allocation
EKC 31%
Satia Industries 18.5%
HariOm Pipes 10%
KMC Speciality Hospital 7%
Psp Projects 17%
Kwality Pharma Ltd 7%
Total - 90%
Cash - 10%
I will update average prices once i have completed the buying fully
Please ask questions or doubts if any, or any knowledge/ contra views are always welcome
I am targeting 30% CAGR P.A. (With changes and adjustments when needed)
And past 2 years CAGR on my PF was 55% (Portfolio still up,Which i consider core portfolio to go as heavy as i can,But have ample amount of cash out at the moment, I will deploy that back soon in that one)
Nope, The above mentioned portfolio is my smallcap portfolio
The core portfolio has a few midcaps aswell as 1-2 ETF + The small cap i bought earlier (A year ago or so)
Although the cash used here in smallcap one is also a considerable amount for me, As it is more then 50% in terms of cash, If we compare both of them
You are holding EKC 31% . When did you start investing in this? Though company has shown tremendous profit growth in last 5 years and so it’s stock price but companies fix asset growth is almost flat. Kindly look into this. Where those profit went??
I started a year ago or so, Have noticed it,Questions on management
But here i feel in such growing market and good demand even a average management can pull it off atleast for next 2-4 years, Although closely tracking, But so far good numbers and so reflected in CF
They haven’t disclosed about volumes,Why?We don’t know
That also raises question on management and few other things aswell
They may walk the talk this time as they wish to expand more and this time in a strategical way.
Current capacity utilisation is around 90%, So lets assume Q1 Fy23 will be flat (Around 480-485 CR)
Q2 FY23 Plant gets commissioned, After that we can expect a hit rate above 515-520 CR ( At the least)
And so on after next few quarters 2 more commissions and capex to be completely over by FY24
That’s for the current capex, Seening the demand and if it sustains we will see more expansion
Top line growth to be somewhere in-between 10-15% (Can be more,But i like to take a more conservative approach on this) Around 2K CR Topline for FY23 easily discounted at cmp even at 20-22% Sustained OPM and current GPM
Go for rough plant wise earnings and projection for more clarity,
Looking at current valuation you can do the math of price,even using median PE or no expansion of the same
Bought Gabriel India (Now only in 2-3% Cash)
Price @131
My auto ancillary pick, I will be tracking this one closely and may exit if anything wrong
On charts it looks good aswell
What a great move from PSP Projects (rallies ~11%).
Thanks to promoters stake buy from the open market.
An healthy order book of Rs 4,324 crore, has improved over five times over the past five years.
It was on my watchlist from the day @Kamlesh1 posted his small-cap portfolio. Awaiting a small retracement. Kamlesh bhai, is there any mentioned stock you give a “BUY RIGHT NOW” suggestion? Please, do share.
Thanks for the appreciation, Happy to have added any value on the forum
I personally think you will get a small retracement in all of them in next few days,As Nifty will make another low soon (As per my TA and understanding,I may be wrong or not), Some stocks have made the bottom and some haven’t so we may get a discounted price in them,
Gabriel India is also a bargain buy if they execute well
