Middle to long term portfolio

Hello Experts

Would like your comments on allocation % adjustment on below portfolio considering middle to long term (1-5 yrs) period.

Stock Allocation
TCS 25.6%
RELIND 14.5%
HAVIND 13.3%
RAJEXP 11.4%
NTPC 4.3%
ITC 2.2%
BHEL 0.8%

Above top 10 investments have been done well in the past. If I have to narrow down allocation to only 10-12 stocks, where should I be focusing on entering and exiting.


Hello Hiteshbhai, Donald and experts

I am looking at exiting Reliance ind, reliance communication, bhel, bharat forge, tata chem and sbi and would be balancing by adding new scrips. Pls provide comments/suggestions…


**I am not an expert enough to advice you but I think you cna hold Reliance Ind & Bhel. Reliance may benefit from the gradual hike in diesel prices as it can sell dieseldirectly in the domestic market and also the GRM is improving and the petrochem margins are improving. Bhel is at the historical low PE and going forward we may see the push for the power generation. **

Due to continued weakness in market and scripts - RCOM, Bharat Forge, BHEL and NTPC, I have cleared the holding.

Thinking of holding REL IND, GIT GEM, ITC and Tata CHEM for2-3 months timeframe.Reducing # of scripts is helping to focus on following watchlist:









I will update holding% in next post.

Good to see TCS as your largest holding as is the case with me.

What’s your reasoning behind the same n also for Icici ?

Thank you for asking that question. Being in a field, I have not bothered to organize thoughts about TCS position in IT services sector.

Being indisciplined, I have myself not benifited from this. Hope this trigger will also push me a little bit in right direction.

TCS has some unique advantages over other software service companies.

1). TCS sales does not only come from “bid and win”. They have capability go beyond this framework and as a result, they continue to add clients and increase portfolio of existing customer base. Not to forget, they can tap clients from other Tata companies which gives them a good head start. Others waste money in reaching to TCS starting point, in many cases.

2). TCS execution model is something that other software services companies are not able to replicate - that includes indian as well as overseas services companies like accenture. Interestingly, if one tries to find out “what is execution model of TCS”, one will not get straight answer. But for other companies, thereare simple explainations like “offshore model”, “2 in a box model” etc.

3). TCS is more immune to currency fluctuations because of differential pricing system. While other services companies tried $, Euros pricing models, they have not yet reached TCS pricing system level. This is a favorite topic in analyst community and we can find much detailed and accurate information in their analysis.

About stock price - it has always seemed costly. But heck, it has lived upto the expectation till now.

ICICI - this is a long time bet. ICICI was really not priced correctly when it was trading at 600 in 2008/2009 timeframe. I picked up few at that price. Many do not like ICICI for different reasons like uneven customer handling, crisis management, claims settlement issues, bad assets to name a few. Market did punish ICICIwhenever something like these popped up. Despite of these, it has been able to withstand RBI and IRDA.

Along with SBI, ICICI shown some cyclic movements - this may put us in discomfort for long term investmentand at the same time, opportunity at low levels.

Would like to know analysis as well. Thank you.

Tcs is a changed co with verticalization under new CEO . Ala lynch it can be a fast grower in a slow growing industry if things come to worse.

Icici is a steady co growing nicely under chandra who will be the CEO for next 14 years a big positive.its a play on India story.