Kunj's Portfolio

First of all thanks for registering me as a member of this wonderful forum. I would like to learn from the seniors as well as add value to the discussions in the forum. I was initially hesitant to write about my holdings in a forum with wide audience and seasoned investors like this, but have now somehow gathered courage!

Here is my PF with % allocation (in approx):

High allocation to Manappuram is due to its recent outperformance , it has been a 3 bagger for me in less than a year. Kellton , on the otherhand has been a disappointment so far, was lured by growth in Kellton.

Recent exit include Repco homes (mostly) which I was holding since its IPO days. The proceeds was invested mainly into Sunteck & Canfin

I always try to maintain a some what concentrated portfolio.

Also, I have been on some leverage since last few years. I know purists will be against the idea of leverage. I am now trying to reduce the leverage.

I try to look ahead only next 2-3 years , can’t forecast beyond 3 years with certainty .
Looking for feedback/ criticism from seniors and fellow members.


I am not a SEBI registered research analyst. The above portfolio is not a buy or sell recommendation. Please do your own due diligence before taking an investment decision. I may sell, switch, or further buy any of the stocks mentioned above on my discretion.

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MR. Kunj Welcome to Valuepickr Family

First you have to finalise strategy . Are you able to handle Concentric portfolio or Diversified portfolio. IF you decide on this then task will be very easy.

For conservative perspective Diversified Portfolio will be best strategy.

Allocation wise you need to do balancing of portfolio and diversification. Large cap / mid cap / small cap all type of mix with reasonable % allocation shall be there. I dont see any large caps in your portfolio .Just understand that we are At Peak of Nifty PE and at this stage without diversification you will not be able to survive. We dont know where it will be heading. But to safeguard yourselves you have to allocate at least 40~50 % to Large caps.

Sector wise banking industry is missing which is basic Sector for growing Economy like India. Without Banks economy can not grow.India is having large demographic dividend . Some consumer durables, FMCG should be part of your portfolio which are called defensive stocks

All the best !!!


Thanks Vinayak for your feedback.

I am very clear about my Investing Strategy.

  • I always try to invest in mid/small cap companies (mostly), I am not at all comfortable investing in large cap with an exception of stock like HDFC Bank which I have held in past for sometime (and yes it also diluted my returns) . I recently did invest in Indigo, however I remained uncomfortable with Market cap and finally sold it when I saw my air ticket fare going down consistently (I travel by Indigo frequently) .A good find in small cap stock with decent allocation can do wonders to one’s portfolio .( this is what few stocks including Manappuram has done to my PF)

  • I have always maintained a concentrated portfolio and will maintain the same in future also , as this is how I have been able to built a decent portfolio. However, now a days I keep few stocks with minor holdings in the tail.

  • However, first of all I develop a clear idea as to why I am investing in a particular Co, make notes and then invest. I try to make an educated guess about earnings into next 2-3 years. I don’t forecast beyond 5 years.

  • I have now learnt to pay more respect to valuation aspect. In the past I have overpaid for few stocks, may not have lost money , but then lost out on opportunity cost aspect. Paying too much for quality is also a must avoid .

  • I have also realised that one can make big gains only if it is backed by own research and conviction. (Manappuram testified that ). Although I have made decent money in the past by investing in a Stock like Page Industries also with high conviction but research was not mine.

  • I don’t fancy bank stocks, although I am considering couple of small banks . As regards,FMCG stocks , on an general note I find them expensive, though I am digging into one or two consumer names.

Hope the above clarifies little bit about my Investing Strategy.


Hi Kunj,

Understood your strategy but How do you protect your portfolio for downfall if u dont diversify and dont take exposure to large cap. Risk mitigation process shall be there.

At this juncture it is important to mention are you believing on longterm wealth creation or you trade frequently.



Small Caps / Mid caps in general have higher volatility and not necessarily higher Risk. Similarly, Concentrated Portfolios are not necessarily risky. As legendary Warren Buffet has said “Risk comes from not knowing what you are doing.” Although I do not go for detailed micro analysis as some of the members here must be doing, before investing in a stock, I ensure that I have clarity on the reason as to why I am buying a particular stock.

Having said that in selecting small cap/ mid cap stock , one has to compulsorily apply apply filters like probability of survival in downturn , Management Quality, Cash Flow and of course valuation.

One pitfall of my strategy is that since I am constantly leveraged , I am unable to take significant advantage during crisis in the market when stocks are available at throwaway valuation. For example, I was unable to take significant advantage in downturn during Feb this year. Also one has to be mentally strong to bear the pain during that time although difficult. I am now trying to reduce my leverage.

My investment time horizon for a stock is usually 3 -5 years. I don’t trade my stocks, I learnt this lesson early in my college days when I tried to trade on few occasions, suffered some losses and then gave up.

hi kunj,

It was interesting to go through your thought process about stock selection. I too agree about small/midcaps having higher potential to provide better returns than large caps in general.

Good to see you holding on to a winner like mannapuram inspite of it going up 3 times in less than a year. I read an interesting discussion on a whatsapp group about making your holding FOC – free of cost. I myself have been guilty of such behaviour before in my early days. The problem I see with this approach is that you tend to miss a big chunk of returns by cutting your position midway in a winning stock. Instead its better to stick around and enjoy the ride although its often difficult to hold on to winners for most people.

Creating big returns entails picking winners and allocating sufficient capital to those ideas. Most investors lack the second part of this. And then all that their winners give them is bragging rights about having got x amount of returns from a stock without actually contributing meaningfully to portfolio returns.

If one gets stock picks right and has a reasonably decent (how much will always be subjective) allocation it will pave the way to market and competiton beating portfolio returns.

I would like to read the investment logic in your stock picks. (a few lines briefly touching on the investment merits of each co.)



Hello Hitesh ji,

I am glad that you gave your feedback on my above post. I really admire your investing skills. I can’t agree with you more on the fact that holding on to winners lead to market beating portfolio returns . Peter Lynch’s quote on tendency of fund managers to sell their winners and add to losing position as amounting to "pulling the flowers and watering the weeds” left a great impression upon me.

As desired, I am producing below my investment thesis for each of my top bets:

Manappuram Finance:
I bought it last year on sheer valuation aspect. I have observed that market always react in extreme, both in optimism and pessimism. Valuation accorded to Manappuram or for that matter Muthoot reflected extreme pessimism on their business model. At that time , Manappuram had AUM of over Rs.9,000 cr , was available at a MCAP of around 2,000 cr with a P/E of around 6 and Dividend yield of around 8%,. What more to ask for? Management gave a clear road map in the Concalls on their strategy of diversifying into non gold businesses (viz. Micro Finance, Mortgage and Vehicle Finance) & focus on short tenure loans.
I took a leap of faith in their vision and happy to note that so far they have walked the talk. I took further leverage, sold some of Gruh Finance and bought the stock upto 15% of my P.F. at an average price of around Rs.25. I wanted to buy more but had no cash and did not want to sell my other stock or raise more leverage.

I believe further re rerating would depend upon:

a) How efficiently and quickly can they scale up non gold businesses (presently around 11%)
b) How quickly can they reduce over dependence on south (presently around 65%)
c) Their ability to reduce dependence on bank finance.( presently around 72%)

Key things to monitor would be volatility of earnings if gold prices fall, and regulatory changes that may be made by RBI / GOI.

Granules India:

Granules was not my original idea. However, on getting the lead, I studied the stock in detail, developed the following investment thesis and bought the stock last year.

a) Solid track record. It had grown sales in excess of 25% and Profit over 35% in last decade.
b) Dominant share in Paracetamol, Ibuprofen & Metformin etc which are sort of of
evergreen products which would continue to sell in times to come
c) Management had clear Growth Strategy whether acquisition of Auctus,
rationalisation of its portfolio, or CRAMS JV with Omnichem etc
d) Real catalyst would be impact on margins due to higher proportion of sales of Formulation.
e) Being a B2B Company, chances of lapses under FDA Audit were expected to be lower.
f) Further successful entry into OTC Market in US can be a game changer.

However, it would need constant monitoring at my end since it has been a Capex led and export oriented growth and any delay in execution of plans may put the rerating thesis on hold. Key Risk being pricing pressure on existing products and negative surprise on FDA Audit.


I bought this recently .Vernacular newspapers are here to stay in India at least for immediate future.
a) Clear leader in Bihar and Jharkhand, gaining Market Share in U.P.
b) Profit CAGR of around 25% over past 3& 5 years.
c) Available at reasonable valuation of single digit PE with FCF yield of around 8-10%.
d) Significant scope of reducing the gap in term of yields with Dainik Jagran in U.P.,
e) State Election in U.P. being near term catalyst.
f) Possible EPS accretive acquisition (not in near term) or buyback/dividend
(may be hope) out of cash of around Rs.650 cr or so in the books which may lead to
re rating of the stock
g) Key monitorables include mode of deployment of cash, newsprint price.

Kajaria Ceramics:

I bought Kajaria around couple of years back. My Investment thesis is produced below:
a) Tiles Industry was growing in double digits due to urbanisation , increasing disposable income etc, lower per capita consumption in India compared to developed countries.
b) Kajaria being leader in the industry, enjoyed some short of moat or atleast brand recollect/ power. Dealers spoke highly about Kajaria. In fact, during renovation of my home (prior to my purchase of stock), I finally had to settle at Kajaria floor tiles for my room.
c) It was gaining share from unorganised segment.
d) Gradual Reduction in debt.
e) Govt ‘s mission of Housing for all by 2022 and Swachh Bharat added tailwind to the sector as a whole.
It has doubled in price since then, valuations are optically expensive, but then whenever the thought of selling it comes in my mind, I start thinking about the story of Asian Paints on the bourses and then hold back

Key Risks: Gas Prices , Time wise correction

Neuland Laboratories :
I wanted to buy a small cap pharma company .I liked the Management’s vision to focus on high margin niche APIs , greater focus on CMS and the probability of operating leverage that would resulting from increase in sales as explained by them in their Concalls. I think opportunity for this Company is huge, whether they are able to scale it up is to be monitored. Some may argue that sales were stagnant for last few years but in investment we have to look forward and see what can change. Key risk remains too much dependence on export (a usual case in Pharma with few exceptions like Alkem etc) and scalability. Management seems to be very candid from what I read in their concall transcripts.

Sunteck Realty
Sunteck is a contra bet for me. I bought it recently partly from the proceeds of Repco Homes. It is a Mumbai focused quality real estate Company with around 24 msf land bank. It basically caters to HNI Clients. Valuations reflect the extreme pessimism towards the sector, which is bound to improve , only question is of time. Current Market Cap of 1400 cr , with reasonable debt. Revenue has been volatile since it followed Project Completion Method of Accounting .
Ability to partner quality PE players ( including Kotak to which it provided an exit at around 22% IRR over a span of 4 Years) speak volumes about the management. Such partnership helps in buying land at cheap prices when ever opportunity presents itself. I was quite impressed with Mr. Kamal Khetan when I heard him in the concall. Mr. Ajay Piramal through trusts/ investment arms also hold around 5% stake in the Company.
BKC residential project may have diluted the ROE but I am looking ahead and feel they will be one of the big beneficiaries once the market improves.
Potential re rating is contingent upon quick monetisation of inventory at BKC and timely execution of Goregaon project.
Key Risks remain delay in recovery of real estate market and single market risk (Mumbai).

Canfin Homes:
Bought recently, Repco proceeds were partly used to buy Canfin. Fastest growing HFC at relatively inexpensive valuation . So, apart from sector tailwind, more of undervaluation play on relative basis.

Kellton Tech:
Wanted to buy a IOT/ Cloud based player due to sector tailwind . Studied 8 k miles, Kellton , Cambridge & Ramco. Could not understand the Cash Flow Statement of 8k miles, Ramco was overvalued, Cambridge used to trade either in Upper Circuit or lower circuit. Kellton was offering higher growth at reasonable valuation, so went for it . I know growth was risky as it was led by acquisitions. Disappointed more by Management’s easy going attitude on TV. I am currently reviewing the position.
(I do hold a minor tracking position in Cambridge.)

Take Solution:
Renewed Focus on Life Science Segment which is witnessing very good growth rates, huge opportunity size and was available at attractive valuation. Company has so far delivered. However, kellton experience is forcing me to review my position here also.


Thanks Kunj for obliging with the investment arguments in your picks.

I request all other guys posting portfolio threads to put up similar investment arguments (or something in their own style) so that a constructive discussion can be taken forward rather than people just criticising them or patting them on their back.



Kunj, what is the reason behind exiting repco home finance? Thanks in advance.

Hello Mr. Kunj
Could you share how do you leverage? The typical calculations behind it etc.

Since you do not trade, I am assuming it is not simple case of trading in FnO

Hii Arjun,

I sold most of my holding in Repco since I was eager to buy stocks which has re rating potential. Repco is still a great stock to own, I think it will remain a decent compounder, it provides stability to portfolio. However, further re rating looks difficult unless they throw up some positive surprises in earnings.

One should not be in a hurry to sell a stock like Repco unless he has found something interesting and has conviction on it.

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Hii Ashish,

Leverage is a double edged sword. I think one has to be very careful with it. While return may look magnified in upside, it has potential to destroy your capital on the downside.

I have been on leverage for quite sometime and therfore is accustomed to it , but one has to put a cap on leverage depending upon the risk profile. In general, it should not exceed 20% of Portfolio or the amount which one will be able to repay in 2 years time from his salary or business income (i.e. any income other than from Stock Market). I first read about the idea of leveraging at TED.

However, one has to be very sure about his picks. Leverage on Borrowed Conviction can be disastrous.

Also, from my experience I must tell you one must not buy overvalued stock from leverage money, valuation has to be on your side if you are buying with leverage. Being on the right side of valuation takes care of so many sins in investing.

F& O is a strict no for me. They can wipe out one’s wealth in no time. Warren Buffet has aptly called derivatives as "Weapons of Mass Destruction "

I primarily use LAS Facility from Bank and NBFC. However, I am planning to reduce my leverage considerably since it is on the higher side.


Kunj ji really appreciate clarity in thoughts process in all discussion selecting stocks, exit or even leverage. Good learning by reading your response to all queries.

Hello Kunj Can we be facebook friends?

Hii Mukesh,

Thanks for your kind words. But I believe I am still on learning curve and we should try to learn from each other in this wonderful forum.

Sure ,although I am not that active on facebook!!

my fb id Madhaw Bajaj. Please send a friend request or give me your fb id. Thx

Hi Kunj

Any new additions or modifications to your portfolio.


Thought of putting the updated Portfolio here for review by members:

Recent key additions include PNC Infra . Factors driving the investment in PNC Infra included Huge Opportunity size, good track record in terms of execution, strong balance sheet and relatively reasonable valuations. Key risk being aggressive bidding.

As usual quite a learning experience over last last 6 months especially the demonetization period. Once again realised that we are living in extraordinary times where disruptions have become quite common, hence weightage in some stocks reduced. Leverage is also reduced although a lot is still to be done.

Looking for feedback/ criticism from seniors and fellow members.

I am not a SEBI registered research analyst. The above portfolio is not a buy or sell recommendation. Please do your own due diligence before taking an investment decision. I may sell or further buy any of the stocks mentioned above at my discretion.

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Hi Kunj,
Curious about Kellton. Reduced or allocation % down due to dip in price. If exited or reduced please give the reasons. I am still holding it.Can’t understand the nonperformance. Stock specific or due to meltdown of IT.