Mahabali's Portfolio

Hi Guys

I am a passionate software developer working full time. I have been investing in mutual funds and stocks with some reasonable returns. I redeemed all my investments right after budget and moved them to Debt funds, owing to potential impact of LTCG, expensive valuations and my own busy schedule. I have two issues now in

  1. Returns from Debt funds is not satisfying ( somewhere between 7-8%) and still i want to invest in market
  2. I am still apprehensive of market valuations and Donald Trump’s aggression in world politics

So I have decided to hold my debt funds and planned to do a SIP approach in Markets i.e To buy stocks every month, thereby averaging costs and still make some returns. I planned to invest in the below stocks.

All of the stocks have PE < 25 and I am willing to hold the stocks/ do the SIP for more than a year. This is the first time I am taking portfolio and SIP Approach. Thanks to all seniors of Value Pickr forum for knowledge imparted. Feedback and Criticism are most welcome.

Good selection of stocks, I personally have large holdings in LT Food & meghmani, sold DHFL as my gut feeling says 2018-19 will be bad year for housing finance companies, lot of hidden things. Delinquency ratio is huge.

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Thanks for the feedback. I am from South India (Coimbatore) and DHFL does not have any significant presence. I have been wondering about their low valuations, but still having a decent financials. I see that DHFL’s npa ratios are on the higher side.

I still dont get faith on indiabulls hfc, ever since i saw a video where they were trying to sell home loan like a street hawker.

So I am unable to make decision on HFC space .

Reliance Industries posts good set of numbers for Q4 :sunglasses:

Update to my portfolio in last 8 months. To start with Somehow I felt DHFL and Indiabulls Housing was too good to be cheap and to believed upon, although I aware of the debt issues and didnt invest in first place. Same goes for Tata motors, after researching, found its more of JLR company than Indian automobile company and since its too much time consuming to research on foreign markets, didnt invest either.

I did invest in rest of the stocks, although didnt get the allocation right. After doing equity SIP for 2-3 months, Iran ban came a shocker for LT foods and after researching, found there wouldnt be much growth in near term, so I sold it at 30% loss, fortunately allocation was miniscule. I had to sell Meghmani organics at nearly 20% loss after their promoters recent fraud and lost confidence. Also i had to sell Sonata Software at 10% profit due to my own emergency crash crisis. My mistake was to not build an emergency fund. So took some time to rebuild emergency cash reserves, before investing again.

After researching, I added few more stocks to the portfolio over months and I have continued with equity SIPs. My overall portfolio is up 1.57%, at the end of my first investing year. I failed to beat Nifty but atleast I performed better than my ELSS mutual funds which is at -0.06% :sunglasses: . Next year target is to beat Nifty Index.

Also I am still looking to add IT or a Pharma or a different sector and also to limit to 7 stocks. Attached current portfolio details.

Suggestions/Feedback/Criticism most welcome!

Happy new year guys!

Quite amused to see that you have changed your entire portfolio in 8 Months time except Reliance Industries. Though good to see that you booked losses in low conviction stocks. Your current portfolio is up by 1.57% while you have not adjusted it with total Losses you have in LT Foods and Meghmani during the year. That will reflect a true picture (How much your money has grown in an Year)
Regarding your current portfolio , I feel that it is still unevenly concentrated looking at the cyclical stocks you own. Better to diversify if you like to play with cyclical stocks. It is very tough to predict cycles and one bad allocation can dent overall returns in such concentrated portfolio.
You should also disclose about your returns expectations and holding period for the stocks .
Disc: I do not hold any of the above Companies

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Thanks for your feedback.

1.57% is after adjusting with losses in LT Foods and Meghmani, since I was starting SIP at that time, allocations were miniscule for both. I decided to make a post here and then construct portfolio. Its only when I was putting my actual money, I was apprehensive and started to make research. So there is a big variation from first post to current holdings. My portfolio sort of stabilized around 4th month mark, but still added Manappuram during mini NBFC crisis. I was looking at if Equity SIPs do actually work and I will invest and see for a year more.

Yes, it is currently unevenly concentrated and I am looking to balance it going forward. Suggestions on balancing is also welcome. I will evaluate it.
Being a novice investor, my returns expectation is 10 - 15%. I will hold as long as there isn’t any management fraud or will sell if the losses are at 30% and if there is little room for growth

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