@Malkd and @raku .To be frank without digging deeper simply looking at the pe or numbers won’t give full picture and might even look expensive because the industry dynamics and regulation/duties, tariffs are keep changing.Without doubt the opportunity size is huge 33GW to 100GW in 2022 to 300GW in 2030 the question here is whether Borosil can capitalize it or not? If a MW costs 5cr and glass cost 10% of it another 65GW equals 32500cr opportunity size for glass I assume single side glass on conservative basis). .I am just starting to study deeper in to the pv renewables now, what i understand until now is Boro makes glass, a low value part of the PV module which just 6% of the total pv cost, so it’s definitely a high volume low margin product. So I feel here the scale and it’s geo location can make a difference in their profitability. As you mentioned in the nascent stage India’s manufacturing capacity of solar is just 10GW per annum. I also notice there is a complete disconnect between valuation of solar companies like adani green /Borosil and their profitability, am i missing something!
Borosil Renewables shall be doubling their capacity from 450 tpd to 950 tpd. The management in one of their video interviews hinted at announcing an another capacity expansion of 1000 tpa. They also mentioned that they have no constraints with regards to land for the new furnaces. In fact they have enough to have 2 x 1000 tpd furnaces.
China at the moment controls 90% of the solar glass market. With it’s rapid expansion, that should rise further. So imo, they may not resort to big price cuts, as it would hit them more!
Borosil Renewable is among the only 4 companies outside China in the field of solar glass. In fact imo the largest outside China after the planned expansion.
With the world going green including US, solar panels should be demand for at least a decade from hereon. India too has pledged it’s support for renewable energy. All in all a good spot for the company to be in. May be looking expensive at the moment based on TTM basis, but surely will look much reasonably priced after a few quarters.
@Malkd , My IT portfolio looks as below , i thought you would like to know my stand in the IT space, so thought of letting you know 
- Kpit Tech: Current allocation 1%, Added over the last few days
- I think they are the leading service providers in mobility space, well priced when compared to TataElxi
- The below video summarize the current proposition well
KPIT Technologies Share | Stock Analysis | Latest News | Business Model | Fundamental Review - YouTube
- Mastek: Current allocation 1%
- Their acquisition of EVOSYS is reaping benefits and we can see that coming off in their quarterly results
- Valuation is attractive
- Strong partnership with Oracle
- They are hiring a new MD at US to expand US business
- They are one of the vendors amongst the biggies who got shortlisted for UK govt projects
(https://www.bseindia.com/xml-data/corpfiling/AttachHis/4ee328c9-5498-4898-9e0b-a8344d0587ba.pdf)
- Intellect : Current allocation 2.5 %
- As mentioned in one of my earlier posts, i think their Banking product will take off soon
- HCL Tech: Current allocation 3%
- Their current PE is still attractive , confident that if the market stays upward or even range bound this stock will give atleast 20% in next 1-2 months and long term story is intact
- Expleosol and Saksoft: 0.5 each will get rid of these two both very soon. first thing to go would be Saksoft
Disclaimer: I am not SEBI certified analyst, please consider my view with a pinch of salt.
Hey @rshankv . Thanks for sharing . I’m glad my IT portfolio shares so much in common with someone wih your impressive IT background.
KPIT is a fantastic company that I’ve been swing trading since 60. Haven’t taken a long term position yet but post latest results with increased margins and management walking the talk I’m tempted to go long. I’m annoyed I dint just sit with it earlier though. Will hopefully get an entry point soon.
IDA we both share as good parts of our portfolios so I wish you well. Been a fantastic run-up so far even before the actual projected profits come in. Has all the makings for a market frenzy. The sky is the limit next few years here.
I apologise for saksoft… haha. I dragged you into it. With so many other options you are right that relying on a company dependant on mergers for growth isn’t a good play. A cool 10 percent profit atleast …
Expleo I’d hold (and I am) for a little longer. Technically and fundamentally there are some crazy things happening there and the story is being backed by charts now. IF management walk the talk and break through their glass ceiling of 80 crores in Q1 expect It to test it’s all time high. It’s already set a fantastic support and given a nice return so far and downside looks capped. Personally il be waiting for a few quarters to check if management do what they say theyll do(and with their new big client it looks like they will) and if they do so il hold for a couple years and will be banking on its all time high being broken which could lead to a huge target of 1500+. Technically and fundamentally amazing things are possible here over the next year+ considering the dirt cheap current valuations(if they continue underperforming in FY 22 or if a major support at 470 breaks then sell sell sell). Think of it as swing trading bet with a 2 years holding period with a chance that a virtuous cycle may play out leading to a longer timeframe of returns.
Will have a deeper look at mastek. Came across them when studying oracle. Thanks for the insight .
Thanks to you I’ve begun investing in IT BFSI and I’ve had some fantastic returns so far along with an increase in knowledge in a sector outside of my comfort zone and I’m now hooked
(Even OFSS may be one of the best investments I’ve made considering it’s already up 13 percent and has dividend left to be given too along with safety at valuations and relatively large mcap)
Btw have you had a look at the mini infoedge ie xelpmoc? Been reading some good things about it in the forums and I’ve looked at the startups theyve backed and it looks very interesting. I can’t get over the name though. I know it’s complex backwards but it seems so shady and alienesque haha
No Issues, you shared ur opinion and the price for experience was rather small and it is learning for me too , we don’t even know if their something behind the scene for SakSoft that we are not aware abt, and i am ok to miss that bus, but atleast if we have conviction in its story and if it still goes down that is fine with me (to an extent) but with SakSoft i didn’t had the conviction.
Expleo’s story is still good when compared to Saksoft I will track it with current holdings but will give them one more quarter
IDA is on the same space as that of OFSS and my first preference would be to chase the underdog and OFSS is being a laggard for a long time, I think OFSS are premium and that is reflected in the operating profit margin which is consistently above 45% and hence might not be able to scale up their sales volume , FIIs holding is consistently coming down for OFSS… OFSS is a safe bet and that’s abt it.
I will get back to you on infoegde (Naukri), just started exploring the same
Yup OFSS is purely a safety play. Expecting 8 percent growth + a good dividend yield max. Bought it under 3000 for Portfolio 2 ie safety portfolio(that’s my wife’s money. I can’t use it on small/micro caps). IDA is my bet alongside expleo in my portfolio 1. Talking about xelpmoc btw… infoedge is the safer and obviously more fantastic option… but based on what I’ve read so far xelpmoc seems to be following their business model. Very risky and there seem to be some red flags as pointed out by some in its thread but there is a potential goldmine hidden underneath. If only their name was something digestible instead of xelpmoc . Saksoft has given a nice random return since support levels of 340 but if and when it does crash there’ll be no conviction there to average down/hold for sure so taking profits and running makes sense.
Btw vaibhav global is probably my favorite proxy digital bet. Added my second tranche today in the fall (only had to add 0.5 of my second tranche since it ran up 1.5 times since I first invested a few months ago). Valuations are no longer cheap but have a look when you are free since runway for growth looks huge with Minimal capex, huge cashflows, huge growth via digital platforms and tv and now new products alongside their jewellery. As mentioned further up it’s in my no brainer sip list. When it crashes I add (though I’m sitting on more and more cash as the market looks like it could give bigger opportunities soon)
I love admitting when I’m wrong. I was wrong about xelpmoc. Read a couple comments in the xelp thread and the “red flags” and name put me off. I have spent majority of the past few days studying the annual report and presentations, listening to the concalls and watching interviews. And I now feel I have a somewhat ok understanding to valuate the business. It is not a typical business to valuate. It’s PE will always be astronomically high because the business that gets reflected to calculate that isn’t their main business at all. Their main business is helping startups set up and taking equity in exchange. What needs to be tracked are these startups ie the likes of 4tigo, mihup etc and the total value of these is about 44.3 crores. So the market cap reflects these investments ie about 9x these investments. The promoters have a long term vision and are very genuine especially Mr. Sandipan. If he leaves I leave basically… but I’m hoping he stays put for the decade. His view on the long term and not quarter to quarter resonate with my thinking and the fact that a microcap has such detailed communication with their investors in nothing short of fantastic. The risks here are obvious but I’m willing to part with 2 percent of my portfolio to jump on board if the market allows a bigger correction here(the market overall looks weak). At max il lose 2 percent of my networth… at best this could be the next infoedge once their startups mature(the only other company in the stock market where you get an indirect startup play). It looks like the most exciting company to own of all the companies I’ve seen in the market. Not the best… the most exciting!
Just dial, expleo and xelpmoc will eventually take up approx 5 to 6 percent of my portfolio(investment wise) all combined. Won’t be allotting more but will try to let these run for the long term. The rewards could be endless while the risk would be safeguarded at 5 percent.
I think it’s time I start seperating my portfolio into core and satellite. These 3 along with Racl would be satellite (small and microcap risky bets) that il let run without adding too much more until a few years pass while the likes of ITC, Laurus, Deepak, Vaibhav, Intellect Design, Borosil, Astec would be core which il add whenever there are dips.
Disc: Planning on investing in xelpmoc soon. Good support in 260 to 270 range so may do it sooner rather than later. Not a sebi advisor.
If you told me I’d get a chance to invest in a specialty chem, nutrition, life sciences company with bonuses of CDMO and Ethanol Tailwinds with a good promoter at low double digit valuations in this current over valued market I’d say you were crazy. So I can’t believe I’m getting a chance to invest in jubilant ingrevia at these low valuations. Will be investing my first tranche on Tuesday at hopefully around 240. Will be a painful few years while capex is done but there seems to be so much safety at the current price that I just can’t overlook it and will use further dips over the next few years to build my position. Re ratings are slow… they don’t happen overnight… Ingrevia needs to prove itself over the next few years and they need to show that they can be profitable even with debt planned. I am pretty convinced that they will do just that and 3 years from now the magic of re ratings plus earnings growth could lead to a huge wealth creator here though a lot of patience will be needed. I wasn’t supposed to invest in new companies but this just feels too good for me to pass up.
Recently invested in Xelpmoc at 260 too and am seriously tracking nesco where I’m expecting the rise in covid cases causing exhibition slowdowns and wfh worries to put even more pressure on the stock giving me a nice entry point between 400 to 450 which I will gladly take.
Overall I’m enjoying this brief turbulent period in the market and my main decisions are down to whether to add to my existing positions on dips or start creating new ones ie Ingrevia, Xelpmoc, nesco etc.
I am not very gung ho on their capability to execute within timelines.
Jubilant lifesciences suffered for a long time . debt overhang added … Was not a great ride for light hearted
Agreed. However at 14x I’m willing to take a short time medium term pain for what should be a quality play long term… and considering the Tailwinds execution could happen on time too. If I had to ask for the perfect combo of divisions to benefit from current Tailwinds I would have asked for spec chem, cdmo, nutrition, life sciences and Ethanol play so I couldn’t ask for more at these valuations. Had fully expected a pricing above 300 so feel there’s a nice MOS here. That being said I’ve shifted to a tranche system to protect downside so Il be betting only 1 tranche here and will average down later if I get a chance or average up as the story improves.
Edit: For the first time in a while I placed a pre market order and bought jubilant ingrevia at 241.30 rs. Decided to double up and buy 2 tranches at that price since I believe it’s the bottom and probably the lowest price we LL ever see for Ingrevia and the margin of safety was just too huge to ignore and that I have underpaid for a long term compounder. Officially part of my core portfolio now even before I’ve looked at an official balance sheet. This 2 hour video by management along with the fantastic thread here on VP convinced me to take the plunge: https://youtu.be/DV24FFtdop8
The toughest thing about owning mid/small and micro caps during a bull run is deciding on when to add cash to them after the initial investments since
a) they either run up too high b) they don’t warrant more investment yet until they prove themselves more over a few quarters.
With blue chips you can set up similar to an sip where you can invest in them almost blindly on dips. But adding more in these spaces is not as easy and is infact the hardest thing to get right. So I’m setting up a system so that I can deploy cash monthly into my portfolio for FY22 and will see how it goes and reassess in FY 23. My current portfolio stands as
- Laurus Labs (40 percent)
- Deepak Nitrite (25 percent)
- Vaibhav Global (6.5 percent)
- Intellect Design Arena (6.5 percent)
- ITC (6 percent)
- Jubilant Ingrevia (3 percent)
- Borosil Renewables (4 percent)
- Expleo (2 percent)
- Astec Life sciences (2 percent)
- Racl (2 percent)
- Just Dial (2 percent)
- Xelpmoc (1 percent)
Here are the problems:
a) Laurus and Deepak are my main holdings but those have run up too high and taken up monster allocations in my portfolio. So adding in either of these looks tricky. Infact laurus has become such a huge position that I had to sell my other pharma holdings since I became too dependant on pharma and I wasn’t willing to sell even a share of laurus.
B) The runups in Vaibhav and IDA have been too quick and adding more here looks inadvisable at current valuations. So il need to skip investment here too for now.
C) Loaded up on Ingrevia at 241.50 and haven’t had a chance to buy more since then. I’m getting a bit overweight on chemicals so the plan was to sell astec(high valuations) and shift that stake to Jubilant(unbelievably low valuations) but decided against that so im overweight on chemicals too with not plan to sell but can’t buy either. Borosil Renewables isn’t exactly at comfortable valuations to add more in either with commodity prices cooling down so cannot increase there either.
D) the remaining 2 percent and 1 percent companies are basically my alpha bets and until a few quarters pass I’m stuck there too since there is no way I want to increase my allocation in those yet due to the risks involved in putting more money into those bets(for eg I like xelpmoc but sleep would be a thing of the past above 1 percent)
So that leaves me with the following investment loop.
-
Aim to invest additional cash over a quarter and not monthly. An sip with this portfolio won’t work. I’ve setup a savings account in idfc first so my money never sleeps but I wont stay in cash for more than a quarter ie hoard for 3 months max but deploy in the below loop every quarter.
-
Post quarterly updates and concalls check if the stories are intact long term with Laurus, Deepak, Vaibhav, Intellect, Ingrevia, Astec and invest in the companies that drawdown due to short term issues over the next 3 months.
Out of the companies above hopefully atleast one or two or more will crash to DMA levels /35 RSI in a quarter. When they do invest cash into them and let the others run. -
Do the opposite with xelpmoc, expleo, racl, just dial, borosil however… ie invest in them on dips as their story improves every quarter and panic in a corner during short term issues but do not add more since they may turn out to be long term issues.
-
If no dip presents itself then invest in ITC on dips. It’s an evergreen stalwarth for me and I don’t mind it taking up even 30+ percent of my portfolio so this will be my failsafe investment. Also an safe undervalued compounder like idfc first bank, Rites, Embassy or even a mutual fund like ppfas or a long term axis bank tax saver as my failsafe investment too so I have one more Avenue to sip in similar to ITC
-
If an opportunity that screams out Investment ie nesco at under 2500 MCAP presents itself then invest some money there instead of just my portfolio
This is by far the toughest thing about a mid/small/micro cap portfolio that isn’t discussed enough. A large cap portfolio is easy to maintain and sip in. If going with a high beta portfolio it just doesn’t seem advisable to do the same. Will follow the above rules alongside my tranche based system and re assess post FY 22.
Surprised you have exited Alembic Pharma Ltd totally
I wish I didn’t have to. But a year ago my pharma portfolio was at 65 percent. Had to gradually bring it down since it was a bit too extreme. Managed to exit at no loss using rises. The api and cdmo story of laurus just far excels any generics story in pharma and I’m not willing to part with a share of laurus. So it had to be done. I used the proceeds to diversify into IT/Tech/B2C since I had zero(I now have IDA, Vaibhav, Expleo, Just dial and xelpmoc with the proceeds from alembic and granules) . The net buyer for my sold shares was my dad though. He will be holding on to his alembic(and granules) shares for the foreseeable and il be holding on to laurus.
Apart from having ITC in common we try to diversify our portfolio across our whole family for more than the past decade to spread risk even though all of us have our own seperate businesses and seperate families now lol(my wife is stuck with the boring dividend yield Rites/Oracles/Reits of the world, my mom and dad have their blue chips from the early 2000s along with undervalued bets like alembic etc that I can’t afford to own , I have the highest beta stocks and my sister buys real estate… and we all own ITC ). It’s a weird system and a bit nonsensical but it has worked even though all of us are seperate entities and don’t really benefit from each other’s portfolios. Days like today when the market crashes is basically a fun family day conference call between all of us deciding who is going to put money where so I guess it’s more of a hobby now more than actual diversification with my dad being the coolest head amongst all of us to ensure we don’t panic sell(he didn’t panic even during last march though I did lol). So I have nothing against alembic. Sometimes a company just doesn’t work in a portfolio and that was the case with alembic.
Wat a candid post!!! Kudos :-). Vry rarely ppl lay out thr family finances as you have & must say it takes real guts to do that. I’m sure VP forum vl contribute good suggestions to this & makes ur folios more formidable, which in turn encourage more ppl to come out & help\get help for thr investmt portfolios.
Jst a suggestn frm my side here :
Frm purely accounting & tax-saving pt of view, it vl help if u hold ur riskier( compounding work-in-progress stories) stocks thru ur business accounts & the stable dividend paying stocks in ur parents accounts. That way, the investmnt profits\losses can be adjusted against business income for tax-saving purposes.
Thanks for the suggestion … and I don’t mind sharing the principle behind how we invest… but il never share the actual figures nor the actual cagr returns from any Portfolio except maybe my own cagr so my candidness has a limit. my dad has been investing since more than 2 decades so he has the luxury of both dividends and safety with his portfolio. He just adds a few companies now post me doing research else he just continues SIPing in his favorites. My wife and me both have our own businesses but covid taught us that no matter what we do both our money supplies can end at any moment. Hence why the strategy of her creating a stable source of secondary income with dividend based stocks so that we can cover expenses/salaries etc when the worst happens again and a huge beta portfolio so that we can also grow our money over the next decade where both of us are very bullish regards india as a whole. Hopefully over the next decade all our strategies will merge and we ll be financially free and independent to the point where our businesses will be run only on basis of passion and nothing else but until we reach that point we have chosen this route(my portfolio hopefully manages 20+ percent CAGR over the next decade and hers hopefully manages a secondary income via an above 6+% dividend yield and atleast 8+ cagr over the next decade too so that we reach that point). My parents money is theirs and theirs alone so it won’t benefit us directly for hopefully a very, very, very long time and they are happy with their portfolios as they are so switching strategies won’t be an option. So until then our aim is to reach the point ourselves and hence the split between our two portfolios though I agree in good times it won’t be very tax efficient at all.
Thanks for sharing the details, really appreciate your sharing knowledge. I am sure you must have learnt a lot from your father with such decades of experience! It would be great to know which stocks are favorites of someone with so much experience and having seen multiple cycles. It would be great if you can share which stocks your father holds since multi decades and still SIP into them…they would give us idea on how experienced people look at businesses and even on averaging up! Thanks!
Well he has always had a concentrated portfolio with one company per sector. ITC, Reliance, Infosys, Hdfc, Asian Paints, Maruti, Tata Steel, Sun Pharma, Larsen have been his mainstays. Though his speculative punt Suzlon is still hanging around .
The main things I’ve learnt from him are never let your money sleep, compounding and patience is key, there is no such thing as an anchor price, make a company tangible, sometimes the obvious companies are the best. Il elaborate on all of them
- Hoarding cash/overspending on liabilities/savings accounts and even FDs have been sins in our family since for as long as I can remember. Everything we have ever had has been invested in equity/assets. I’d sum up his advice as live within your means till the age of 40 and make your money work for you so you can live free at 41.
- Last year I told him he was lucky he managed to buy companies like reliance, ITC, Infosys etc in the early 2000s(some companies in the 90s). He told me that in the year 2040 my future son would say I was lucky I could buy the likes of Reliance, ITC, Infosys etc in the year 2020 lol. Basically obvious quality companies remain obvious quality companies over decades and will always be the envy of the next generation
- The first time you buy a company is only the first installment of a lifetimes worth of installments. So anchor prices don’t matter. If you feel you won’t be buying more installments at higher prices then maybe the company isn’t worth owning. You should want to own as much of the company as you can and cash will only ever be available periodically and not in a lumpsum.
- Investing is supposed to be boring and systematic. Excitement should be left for what you do with the end result of investing ie the money from selling/dividends.
- Always make a company real. My dad bought a maruti car, opened an hdfc account, visited factories, bought products from companies he owned etc. Basically once you realise how big a company is and how small you are you learn to respect them and not treat them as easy money/a ticker tape.
- Most of the companies he bought were just obviously great. Valuations never really mattered to him. He and his friends discussed and bought companies together. The guys who speculated and chased short term profits are now envious of the guys who bought reliance etc and held on for 20 years instead. Not all companies work out(cough… Suzlon)but in the long run it doesn’t really matter if a few don’t. At the end of the day if you can’t reinvest or hold a company for 10 years and can’t see it being the envy of everyone over the next few decades then maybe it’s better not to invest in it.
- Appreciate a company like ITC which rewards you with dividends which makes it easy to let you allow compounding occur over decades without any pain due to its salary esque returns
- Read annual reports. Infact that’s all he would do. He never really bothered with quarter results and concalls etc. Just annual reports were enough. Also, he would keep one eye on the market every day but with the purpose of buying and never with the thought of selling.
- Oh and one more… there’s no such thing as a great investor and a bad investor. Infact my dad is blown away when I come up with a thesis for investment since he never thought about companies the way it’s discussed in these forums(and hence why he now buys the likes of alembic etc. I’m glad I’ve renewed his passion again). However, what I’ve realised from him is that a good investor is someone who stays invested. The people who stay in the market the longest and find a company they can reinvest in the longest wins. My uncle ie his brother sold a house back in the year 2001 or so and invested a huge lumpsum in Karur Vysya bank and MRF (his wife worked for Karur Vysya and he worked in MRF) in the year 2001 and basically lives off of it now… Karur Vysya bank… imagine that. Infact over a decade their salaries were miniscule comapred to what their networth and earnings were just from that investment. The stock market is a magical place if you give it time. There was a lot of luck involved in all of the above obviously too since as far as I know thereve been no corporate governance issues etc… and that looks like the main thing to look out for.
Basically, the stuff that I now obsess about ie valuations, management commentary, news etc are stuff that he never worries about… and maybe that’s the key to long term investing. Find good companies, owners and stories and trust them until the end and let them do the work for you. That being said… the landscape is forever changing. So the rules of the past few decades may not apply to the next few decades, and hence why my investment style isn’t the same as his, but the overall principles regards patience, being systematic and quality of companies look like they will stand the test of time.
Thanks for taking time and writing a long & extremely well written post sharing the immense practical aspect of real senior investors like your dad and uncle!! 
The stock market is just a wondrous place. I currently rent 2 offices for my business in the main city where I live. I have really good landlords and since I’ve been with them for a while my rent for both combined comes to approx 6 lakhs a year and increases by about 10 percent every 3 years ie I have a good deal.
My aim has always been to buy 2 offices however, and that’s what I’ve been working towards for years. Since I run an educational institute covid has made buying assets even more of a priority since the overheads of rent when not in use(which could be often over the next few years in this new norm) gets a bit too much to handle.
However, the cost of me buying similar offices here would be approx 1.2 to 1.5 crores at minimum and I’d need a huge loan so the overall outlay would be a lot more! the prices for office space here keeps on fluctuating and I don’t think even the brokers know what the actual prices are. I would lose 1 to 2 percent to a broker if I were to buy these offices. I’d be paying stamp duty etc. If I were to shut down my business in a few years id need to spend a couple month or even years trying to sell it or rent it. So I’ve decided to go a different route instead using the stock market.
I have been studying REITs since mid last year and the thread in VP has gone into overdrive off late since the prices have crashed due to WFH and covid. So I had a relook at Embassy Reit a few days ago and realised something crazy.
I currently pay Rs. 6 lakhs per year in rent. The cost of the office itself is rs. 1.2 to 1.5 crore which means the yield is approx 4 to 5 percent. So instead of buying those offices… I thought what if I continue with renting at 4 to 5 percent and BUY Embassy Reit at current levels and lock-in a 8 percent yield instead!
This takes care of all my problems. Embassy would pay me a yield of 8 percent… I use that yield to pay my rent and write it off as expenses and still end up in profit since Embassy increases rent at 15 percent every 3 years. Also I’d always know the NAV value and I can sell to a potential buyer anytime I need to without any hassle. I don’t need to worry about maintenance and the building getting old etc either and I get to stay with my amazing landlords too. And this realisation made me realise the wonders of an REIT.
I’ve mentioned above that I need an instrument apart from ITC and my main portfolio to put money into when the market isn’t throwing overvalued opportunities at me and I feel I’ve found it.
The maths is simple:
Instead of buying 2 offices for 1.2 to 1.5 crores to save 6 lakh rs a year all I have to do is invest Rs. 75 lakhs into REITs (im sure there’ll be new ones launched/the others available to diversify away from Embassy when needed too) when they are offering 8 percent yields and the Reits would pay for my rent(though since I can’t buy in one go but rather over 5 to 10 years I will need to pay more but it’s all relative since real world prices would rise by then too).
I save rs. 75 lakhs + brokerage etc, my problem of being illiquid ie selling when needed is taken care of and I don’t need to worry about overpaying/underselling when the time comes, plus I don’t need to take a loan either since I can buy it in bits and pieces over the next 5 to 10 years whenever the market gives me a good opportunity, it also pays my current rent and I can sell anytime I want and use the cash elsewhere. The only downside is I won’t have the actual luxury of seeing and feeling the place I’ve bought but such vanity really doesn’t bother me at all.
The stock market never ceases to amaze me.
@sahil_vi I need to thank you for this since your posts got me relooking at embassy After I had overlooked the value of REITs for my portfolio… This is just a pure sensible play and makes so much sense for someone in my situation and also de risks my portfolio. Cheers.
Disc: began buying lots of embassy office yesterday at rs. 314 for both me and my wife.
Note: WFH and covid doesn’t worry me with REITs since I’d be exposed to it if I bought a real life commercial property and wanted to sell it too. I’d rather trust embassy with their MNC clients than me looking for someone in my home state if I decide to sell in a decade or so. Buying commercial property directly looks the bigger risk atm so REITs win in this situation. Not a sebi advisor and not recommending anyone else do this.
Agreed. Very bullish on REITs myself. People are somehow not trusting them since it’s a new asset.
Many people I know will take a loan and buy residential property at 4% yield and pay society maintenance, stamp duty etc effectively having a 3.5% or lower yield on their money but are not sure about embassy at 7.5% yield.
I guess it’s since they can’t physically see the asset.
Once I visited a few Embassy office spaces in Pune and Bangalore I knew that these assets are too good to be out of demand. Indian infrastructure is so poor. In that these top office spaces will continue to be in demand as the economy formalises.