Malai’s Copy Cat Portfolio #2

From April 2021, I have started building another copy cat portfolio This time the portfolio stocks are not blue chips but have tremendous growth potential. I will continue building this portfolio with all my savings during this financial year.

Now I have only taken tracking position in them and will study and eliminate some of it and the target is to minimize this portfolio in the range 15-20 by the end of FY22 similar to my copy cat portfolio 1

April 2021 Monthly Portfolio Updates

Direct Equity Portfolio Allocation

S.No Stock Name Inspired From Alloc% Industry
1 AARTIND @unseenvalue 3.00 Chemicals
2 APLAPOLLO @soicfinance 2.50 Consumer Discretionary
3 ASTEC @soicfinance 3.00 Chemicals
4 ATUL @unseenvalue 3.00 Chemicals
5 AVANTIFEED @soicfinance 3.33 Consumer Staples
6 BALKRISIND @soicfinance 2.50 Consumer Discretionary
7 DCAL @unseenvalue 3.00 Health Care
8 DEEPAKNTR @soicfinance 3.00 Chemicals
9 DHARAMSI @unseenvalue 3.00 Chemicals
10 GALAXYSURF @soicfinance 3.00 Chemicals
11 GARFIBRES @soicfinance 2.50 Consumer Discretionary
12 GODREJAGRO @unseenvalue 3.33 Consumer Staples
13 HCG @unseenvalue 3.00 Health Care
14 HIKAL @unseenvalue 3.00 Health Care
15 IDFCFIRSTB @soicfinance 4.00 Financials
16 IEX @soicfinance 3.34 Platform
17 INDIAMART @soicfinance 3.33 Platform
18 IRCTC @soicfinance 3.33 Platform
19 JUBLINGREA @unseenvalue 3.00 Health Care
20 JUBLPHARMA @unseenvalue 3.00 Health Care
21 LAURUSLABS @soicfinance 3.00 Health Care
22 MAYURUNIQ @soicfinance 2.50 Consumer Discretionary
23 NAVINFLUOR @soicfinance 3.00 Chemicals
24 NEULANDLAB @soicfinance 3.00 Health Care
25 PIIND @soicfinance 3.00 Chemicals
26 PRAJIND @unseenvalue 3.00 Chemicals
27 RALLIS @unseenvalue 3.00 Chemicals
28 SEQUENT @soicfinance 3.00 Health Care
29 SOLARA @soicfinance 3.00 Health Care
30 STAR @unseenvalue 3.00 Health Care
31 SUVENPHAR @soicfinance 3.00 Health Care
32 TATACONSUM @soicfinance 3.34 Consumer Staples
33 VINATIORGA @soicfinance 3.00 Chemicals

New Stock Additions
None

Portfolio Stock Deletions
None

Cash Position 1%

Snapshot of my holding

Stocks in watchlist:
Alkyl Amines
Balaji Amines
Panacea Biotech
Bharat Rasayan
Transpek
Fine Organics
Cupid

Your feedback and suggestions are welcome.

5 Likes

Most of these stock capture the current chemicals and pharma trend and even I have invest in some of these names but valuations look stretched in most of them.
Godrej Agrovet is available at decent valuations and gives exposure to Astec too, Jubilant twins and Hikal are also fairly valued but management execution is the key. Most of them have run up more than 100% in the past year making new entry very risky, what are your thoughts on these stocks on the valuation front?

Yes agreed for some of the stocks there is no valuation comfort. At present valuation I consider Vinati, Navin and Suven Pharma as high valuation apart from the platform business(iex, indiamart and irctc) which are usually valued high.

If you watch closely I have my portfolio with stocks in low , mid and high valuation category.

Price to sales is a good indicator for chemical, platform and pharma at current situation considering the tailwinds. May not be a good indicator for Consumer staples/discretionary. Since there are less no of stocks in consumer industry lets take price to sales as a indicator for the portfolio analysis.

  1. No of stocks with P/S less than 5 = 18
  2. No of stocks with P/S in range 5 to 10 = 8
  3. No of stocks with P/S sales above 10 = 6

So considering the tailwind it is good to construct a portfolio with mixed valuation. We never know which will perform and catch up with the valuation. I expect Vinati, Navin and Suven to live up to the valuation. Even if it doesn’t I don’t mind as there are other stocks which will stabilize the portfolio return.

Please note this portfolio is not yet freezed, i will study and add or remove some. The idea is to make this portfolio untouched after the end of this financial year.

1 Like

While cloning is a good idea in general, there is a difference between being inspired by someone and betting on every stock they talk about. I feel your portfolio is more towards the latter.

Soic videos are great for business analysis and understanding (I personally love them) but they are not great stock recommendations. Most of the stocks they talk about are stocks which have already run up 4x-5x in a year. The valuations of almost all of them are extremely high. Do you feel they will be able to continue this run in the future as well?

To me, Soic videos are an answer to the question -
Why the stock has had such a great run? and not What stocks should I be looking at for the future?

Do read about IBM and Standard Oil. IBM beat standard oil on every single metric including growth rate, EPS, Return ratios for over 30 years and yet Standard Oil gave higher returns to its shareholders over that period. Why? One single reason - Entry Price. Entry Price is the single biggest factor in stock returns.

Cloning is a starting point to research a stock but it is extremely important to do your own analysis and research before buying a company. Now if you have researched these holdings well and are confident about them even at these valuations, then it makes sense to continue holding them but ensure that your conviction is yours and not just borrowed.

5 Likes

I completely agree with your point. Most of the stocks are very expensive. I have taken only a tracking position in all to read and understand them. You will see a reduced no of stocks in coming months portfolio updates. Two stocks (Deepak Nitrate and Laurus labs) have been filtered for investment by my analysis till now. My approach in this portfolio will be to choose stocks with huge tailwinds, good balance sheet, great management and low/medium valuation compared to sectors leaders.

You will be seeing the next portfolio update with reduced number of stocks mostly in tailwind sectors(Spec Chemical and API/CRAMS/CDMO)

I will still try to diversify across sectors for this the timeline is end of FY22.

Expect lot of changes in the portfolio building stage.

May 2021 Monthly Portfolio Updates

Direct Equity Portfolio Allocation

S.No Stock Name Inspired From Alloc Industry
1 ASTEC @soicfinance 5.00% Materials
2 CUB @MarcellusInvest 5.00% Financial
3 CUPID @Coolfundoo 5.00% Consumer Staples
4 DEEPAKNTR @soicfinance 5.00% Materials
5 DHARAMSI @unseenvalue 5.00% Materials
6 GODREGAGRO @Coolfundoo 5.00% Consumer Staples
7 HCG @unseenvalue 5.00% Health Care
8 HCLTECH Own 5.00% IT
9 HIKAL @unseenvalue 5.00% Health Care
10 IDFCFIRSTB @soicfinance 5.00% Financial
11 IEX @soicfinance 5.00% IT
12 JUBLINGREA @unseenvalue 5.00% Materials
13 JUBLPHARMA @unseenvalue 5.00% Health Care
14 LAURUSLABS @soicfinance 5.00% Health Care
15 LTTS @Coolfundoo 5.00% IT
16 NEULANDLAB @soicfinance 5.00% Health Care
17 PRAJIND @unseenvalue 5.00% Materials
18 RALLIS @unseenvalue 5.00% Materials
19 SEQUENT @soicfinance 5.00% Health Care
20 SOLARA @soicfinance 5.00% Health Care

New Stock Additions
CUB
CUPID
HCLTECH
LTTS

Portfolio Stock Deletions
AARTIND
APLAPOLLO
ATUL
BALKRISIND
DCAL
GALAXYSURF
GARFIBRES
INDIAMART
IRCTC
MAYURUNIQ
NAVINFLUOR
PIIND
STAR
SUVENPHAR
TATACONSUM
VINATIORGA

Cash Position 0%

Snapshot of my holding

Stocks in watchlist:
None

All,
Please note that the below are stocks are selected and merged to the main portfolio for easy tracking.
Stocks carried to main portfolio:

  1. DEEPAKNTR
  2. GODREGAGRO
  3. HCG
  4. IEX
  5. JUBLPHARMA
  6. LAURUSLAB
  7. LTTS
  8. PRAJIND
  9. RALLIS
  10. SEQUENT

Stocks dropped from Portfolio:

  1. ASTEC
  2. CUB
  3. CUPID
  4. DHARAMSI
  5. HCLTECH
  6. HIKAL
  7. IDFCFIRSTB
  8. JUBLINGREA
  9. NEULANDLAB
  10. SOLARA

All stocks are sold and moved to the core portfolio.

This thread will not be updated henceforth, unless I find a need again to build a satellite portfolio.

3 Likes