can do away with thermax technofab selan and the last five ones which are below 2 % in holding . a conc portfolio with of 8-10 stocks will be easy to monitor as the newsflow will be much less to handle . also it will be quite easy for you to monitor their business environment and their performance over a period of time .
and also by not selling on your not so good choices , you will miss out on the opportunity costs .
i do understand that i am having the risk of opportunity cost. These are mostly contrarian calls which may or may not work. i intend to wait for about a year.
Thermax - i consider the mgmt of high quality and integrity. stock has given decent returns and has good roce even in these testing times. A new JV for supercritical boilers - the first in India is coming up, thou they dont have any orders for same. once the situation improves, the stock should perform very well.
Technofab - infra sector, invested after reading dalal-street blog. However, Ayush has exited from it. Promoters have increased holding by a good margin, valuations are low, low debt, growing at abt 20 %, PE of 4-5.
Selan - debt free,good roce, decent valuation, has announced buy back @ 350 rs with the cash available. I am waiting for an update on buyback, if they dont proceed with the buyback I will exit.
renuka - good n competent mgmt passing thru tough time due to acquisitions in Brazil.
bilcare - the promoter pledging has reduced and is now 6 % ( if i remember correctly), roce is improving, low valuation.
Patel eng - infra sector ?? has abt 1100 acres of land around bangalore, mumbai, pune and chennai. This does not guarantee increase in topline / bottomline but does give valuation comfort. i am expecting increase in earnings going fwd. company has a robust order book.
i intend to exit MCX later and increase stake in FT on declines. i want to limit my portfolio to 10 stocks but somehow i get attracted towards some speculative / riskier bets and end up putting something.
