Midhun's Investment journey and Space to organize investment ideas

Hi All,

I am a management professional with 20 years of experience in the telecommunications industry.

About my investing journey :

Since 2016 , I developed an interest in investing .As most of the aspiring investors of this generation, I chanced upon Warren Buffet, read his letters to shareholders ,his biographies by Roger Lowenstein and Alice Schroder and read almost everything on and recommended by Warren. One thing lead to another and discovered Charlie Munger (Must say was enamored by his concepts on Lattice work of Mental models, Poor Charlies Almanack , Psychology of human misjudgment etc), Ben Graham, Howard Marks etc etc . For a long period of time my phones Wallpaper was Charlie Munger surrounded by Books sitting comfortably in his arm chair and reading profusely. That was and is my idea of financial independence. :blush:

image

Another great influence was professor Sanjay Bakshi . I devoured almost everything written and spoken by the venerated prof.
This period from 2016 till 2020 was a period of intense reading and I read almost every investing author worth his salt during this period.

But my investments was performing badly as most of the fun was derived from bookish knowledge and didn’t bother to do the spade work of investment research.

Then in 2020 when covid struck, I had some extra spare time and chanced upon VP forum and Screener.in. In VP forum I was awe struck by some dynamic and passionate investors and that helped me to figure out the “wheat from the chaff " (Journey is still on , still its more chaff and some wheat :wink: ).

I keep going back to the investment journey of the stalwarts in VP like Ayush Mittal, Dr. Hitesh Patel, Abhishek Basumallick, Donald to keep me motivated when the chips are down.

My personal portfolio after 3-4 years of losses also made some descent gains in the Covid rebound and subsequent bull run (Although I am sure luck and rising tide that takes everything high with it had a major role to play).

I am presently employed in a telecom company , but this is not what I want to do for the rest of my life. I thoroughly enjoy the process of investing and love to spend my day reading and thinking.

Sharing my portfolio here with a brief description of the investment thesis on each of the companies.

I will also use this space to upload interesting bits of information and things that I have learned / come across on and off.

Hope to get feedback from fellow investors.

P.S: The portfolio weightages are lopsided due to runup and drawdown of certain scrips. I am still poor in selling | portfolio balancing along with many other things :slight_smile: . The basic premise or question that I keep asking is whether the businesses can double in 3 years from these levels/ purchase prices which ever is higher (26% CAGR). If I believe so I give it a long rope.

8 Likes


Insightful article by Ruchir Sharma as always. The Bond Vigilantes are powerful and can even topple governments like what happened in UK with Liz Truss and course correct economic policies of strongmen like Erdogan. Lots of variables to ponder about in the Indian context

Portfolio Update : Sold Daichi Karkaria and DeNora . Added IRIS Business , Shivalik Bimetal and Arrow Greetech.

Now Neuland has become a substantial portion of the portfolio due to the recent surge.

Evaluating some more low performers to be pruned like Paushak, Shaily etc .

Stock Name Avg Purchase Price Current Price Purchase Date % weightage Investment Rationale
Navin Flourine 680 3603 Feb-19 8.33 Value Migration from Old generation flourine application to CDMO/Pharma/Battery chem
Arrow Green 368 465 Jan-23 2.65 Chequered Past. Low disclosures, but seems to be doing cutting edge research in Bio-Soluble space, Security products, Graphene, Specialty inks etc.
Guj Themis 124 200 Sep-22 4.28 Fermentation and API play. Dr.Sachin Patel is knowledgeable . Change of model helped
HBL Power 282 303 Sep-23 3.05 Huge Tail winds of KAVACH (TCAS), Battery segment for 5G adoption & Defence
KPIT Tech 40 1327 Mar-19 11.14 Pure play on automotive Software and CASE. Prudent management. Long run way ahead.
Laurus Labs 590 371 Jul-21 6.53 Dr.Chavas brilliance. Successful migration from ARV player to CDMO , Formulation,API. Optionalities like Bio, Gene Therapy etc.
Natural Capsule 410 360 Sep-23 2.50 Venturing into HPMC capsules, new capacity is coming online. API manufacturing . PLI play.
Neuland Labs 2000 4937 Jun-21 22.96 From generic APIs to specialty APIs . Biotech customers and Innovator big pharma clients can take to nxt league.
Optemius Infra 234 317 Sep-22 2.41 Play on the Electronics manufacturing theme. Does contract manufacturing for wearables and lower end phones.
Paushak 8598 6160 Feb-22 1.17 Phosgene specialised company from Alembic (Amin family) group. Slow sleepy , Opaque kind of company.
QGO Finance 27 48 Feb-22 0.98 Trading kind of bet. Nano Cap. Invested just seeing the promoter and as a gamble.
Rategain Travel 550 664 Aug-23 4.56 Travel domain focussed SAAS company. Acts as a bridge between OTAs and Hotels, Airlines etc. AI powered.
Shaily Engg 1239 1790 May-21 2.72 B2B Plastic moulding company with liked of IKEA as customers . Has also ventured into Carbon steel manufacturing for IKEA.
Ugro Capital 210 283 Mar-22 11.69 Digital focussed NBFC in MSME space. Dr. Nath .10x AUM in 3 yr
Gufic Bio 230 262 Feb-22 7.01 Domestic pharma , Liophylisation, API, Botolinum Toxin. New Indore plant with CGMP coming up.Pranav Choksi is knowledgable.
IRIS Business 126 126 Nov-22 3.42 In the petroleum Specialty chemicals domain. Invested due to the turnaround from loss to profit and percieved management qlty.
Bajaj Finance 2338 7387 Jun-20 2.95 Got the price right during covid. Not added since.
Shivalik Bimetal 520 503 Oct-23 1.63 Bimetal , Shunt Resistor opportunity for EV and Smart Meters. Huge Tail winds ahead.
100.00
6 Likes

Hi, since you have distinctly mentioned date of purchase, does it mean , you buy just one time, and then never add on to it?


Interesting article on the future of automobile manufacturing. Many component suppliers might feel the heat if giga casting becomes the industry norm.

The dates mentioned here is the month of first purchase . The purchase price is the average . However I should admit that I am a victim of price anchoring bias and find it difficult to add when price runs up.

1 Like


An article on the huge impact of Semaglutide in the healthcare system. It’s touted as the biggest thing since the advent of statins. Indian firms like Dr. Reddys, Piramal and Neuland supply this API.

1 Like

Update on Portfolio . Sold off Paushak, Optemius Infracom, QGO finance and Shaily. Added Techno electric , Basilic Fly (New entrants) and bought additional Shivalik and HBL.
Updated portfolio with Q2 update on the stocks in portfolio below

Stock Name Avg Purchase Price Current Price % weightage Investment Rationale
Navin Flourine 680 3606 7.66 Value Migration from Old generation flourine application to CDMO/Pharma/Battery chem. Q2 was poor. Still banking on the capex undertaken . FY 25 should be much better.
Arrow Green 368 466 2.44 Chequered Past. Low disclosures, but seems to be doing cutting edge research in Bio-Soluble space, Security products, Graphene, Specialty inks etc. Better Q2 on YOY basis . Will evaluate post Q3 results.
Guj Themis 124 182 3.58 Fermentation and API play. Dr.Sachin Patel is knowledgeable . Change of model helped. New capex . Moving up the vlaue chain with Rifapentin
HBL Power 300 342 4.07 Huge Tail winds of KAVACH (TCAS), Battery segment for 5G adoption & Defence
KPIT Tech 40 1624 12.53 Pure play on automotive Software and CASE. Prudent management. Long run way ahead. Excellent quarter . Has tailwinds behind them . ER&D space red hot.
Laurus Labs 590 368 5.95 Dr.Chavas brilliance. Successful migration from ARV player to CDMO , Formulation,API. Optionalities like Bio, Gene Therapy etc. (Q2 was poor , still optimistic on the optionalities)
Natural Capsule 410 350 2.23 Venturing into HPMC capsules, new capacity is coming online. API manufacturing . PLI play. (Will have to wait till FY26 for substatial growth to kick in from API)
Neuland Labs 2000 5396 23.06 From generic APIs to specialty APIs . Biotech customers and Innovator big pharma clients can take to nxt league. Excellent Q2 . Rerating happened. 12k Cr market cap possible.
Rategain Travel 550 716 4.52 Travel domain focussed SAAS company. Acts as a bridge between OTAs and Hotels, Airlines etc. AI powered. Excellent results . (What is the risk of AI ?)
Ugro Capital 210 268 10.18 Digital focussed NBFC in MSME space. Dr. Nath .10x AUM in 3 yr plan. (Huge expectations, ticks every column . Is it too good for the liking ? )
Gufic Bio 230 298 7.33 Domestic pharma , Liophylisation, API, Botolinum Toxin. New Indore plant with CGMP coming up.Pranav Choksi is knowledgable. (Good come back in Q2 . Waiting for market to rerate)
IRIS Business 126 135 3.36 Excellent management pedigree, in the RegTech SAAS space, No competitors in the niche space. Transitioning from services to prodcuts. Micro Cap . Will add after Q3 , CEO looks to be a loud mouth
Bajaj Finance 2338 7068 2.59 Got the price right during covid. Not added since.
Shivalik Bimetal 520 533 3.82 Bimetal , Shunt Resistor opportunity for EV and Smart Meters. Huge Tail winds ahead. FY 24 might be slow, but huge runway ahead. Looking to add in dips .
Basilic Fly 280 279 2.93 Play on the vfx business outsourcing opportunity. SME stock growing at scorching pace with 0 debt and excellent ROCE. Want to play a basket approach after adding Phantom digital too.
Techno Electric 655 726 3.74 EPC business in Power Space. Has operations in entire valuchain from generation, distribution along with newly venturing into Data centre business. Stock on fire after exceptional Q2 results.
100.00
6 Likes


An interesting article on alternate to Lithium ion batteries developed by battery maker Northvolt .


While most of us grieve and reflect upon the venerated life of Charlie Munger sharing A nice article on the life along with some of his famous quips.
Charlie was the Ben Franklin of our era, a true polymath and great philosopher. His influence on the ever expanding tribe of value investors will now move to vicarious realm.Like he used to love interacting with the “eminent dead “ from now on I am sure he will be canonised along with them by legions of his followers.

1 Like

FT editorial on India’s market

Update on the portfolio : Sold off Arrow Green tech. The company is opaque in nature , not much disclosures . Couple of mail send to investor relations went unanswered. Bought Annapurna Swadisth and MM Forging with the proceeds and some addnl capital.

Stock Name % weightage Investment Rationale
Navin Flourine 7.34 Value Migration from Old generation flourine application to CDMO/Pharma/Battery chem. Q2 was poor. Still banking on the capex undertaken . FY 25 should be much better.
Guj Themis 3.56 Fermentation and API play. Dr.Sachin Patel is knowledgeable . Change of model helped. New capex . Moving up the vlaue chain with Rifapentin
HBL Power 4.80 Huge Tail winds of KAVACH (TCAS), Battery segment for 5G adoption & Defence
KPIT Tech 10.80 Pure play on automotive Software and CASE. Prudent management. Long run way ahead. Excellent quarter . Has tailwinds behind them . ER&D space red hot.
Laurus Labs 5.92 Dr.Chavas brilliance. Successful migration from ARV player to CDMO , Formulation,API. Optionalities like Bio, Gene Therapy etc. (Q2 was poor , still optimistic on the optionalities)
Natural Capsule 2.21 Venturing into HPMC capsules, new capacity is coming online. API manufacturing . PLI play. (Will have to wait till FY26 for substatial growth to kick in from API)
Neuland Labs 20.22 From generic APIs to specialty APIs . Biotech customers and Innovator big pharma clients can take to nxt league. Excellent Q2 . Rerating happened. 12k Cr market cap possible.
Rategain Travel 4.65 Travel domain focussed SAAS company. Acts as a bridge between OTAs and Hotels, Airlines etc. AI powered. Excellent results . (What is the risk of AI ?)
Ugro Capital 9.46 Digital focussed NBFC in MSME space. Dr. Nath .10x AUM in 3 yr plan. (Huge expectations, ticks every column . Is it too good for the liking ? )
Gufic Bio 7.40 Domestic pharma , Liophylisation, API, Botolinum Toxin. New Indore plant with CGMP coming up.Pranav Choksi is knowledgable. (Good come back in Q2 . Waiting for market to rerate)
IRIS Business 3.06 Excellent management pedigree, in the RegTech SAAS space, No competitors in the niche space. Transitioning from services to prodcuts. Micro Cap . Will add after Q3 , CEO looks to be a loud mouth
Bajaj Finance 2.50 Got the price right during covid. Not added since.
Shivalik Bimetal 3.49 Bimetal , Shunt Resistor opportunity for EV and Smart Meters. Huge Tail winds ahead. FY 24 might be slow, but huge runway ahead. Looking to add in dips .
Basilic Fly 2.76 Play on the vfx business outsourcing opportunity. SME stock growing at scorching pace with 0 debt and excellent ROCE. Want to play a basket approach after adding Phantom digital too.
Techno Electric 3.42 EPC business in Power Space. Has operations in entire valuchain from generation, distribution along with newly venturing into Data centre business. Stock on fire after exceptional Q2 results.
Phantom Digital 2.32 VFX company in SME Space. Basket approach . Betting on the VFX outsourcing growth. Studio in Chennai expanding to UK and Vnacouver
Digikore 2.25 VFX company in SME Space. Basket approach . Betting on the VFX outsourcing growth. Studio in Pune expanding to EU
Annapurna Swadist 2.66 Pure play Food retailing company focused on Eastern India. Has made inroads in East India with 5 Rs price point. Growing at a scorching pace . Expanding to Central and Northern India markets.
MM Forgings 1.19 Forging company primarily focused on Auto vertical. With Acquisition of Abhinava Rizal makes its foray into EV space. Small postion ; needs to build more conviction to add more….
100.00
3 Likes


Nice article on reading. Apt time of the year to take up this :grinning:

2 Likes

Article on BYD s ascent in EV space.

1 Like


The biosecure act throws up exciting opportunities for quality API companies in India. Already Syngene has a strong relationship with BMS and Neuland is associated Karuna Therapeutics.

Hey Midhun, What do you see in the VFX industry to go with such a basket approach? Is there some government initiative or is it that VFX comapnies in India have been gaining recognition and top work in the past few years?

Hi, Its more of a portfolio allocation thing. I think vfx is a play on the cost arbitrage and outsourcing theme. All 3 vfx companies should do well unless the vfx industry is overtaken by AI. Instead of putting all eggs in one basket I thought of allocating to 3.


Howard Marks on leverage… Nice read

1 Like