I am looking at a time horizon of at-least 8-10 years and want to compound my wealth by 17-18% CAGR. Honestly, I do not have any investment philosophy as such. Learnings are evolving over the time as I learn something new everyday. However, my portfolio is focused on small/midcaps operating in different sectors. I am gradually building my portfolio by identifying sectors which have good tailwinds and are going to grow at a good pace for a period of 8-10 years and I get a good diverse sectoral exposure through my portfolio.
Here is my rationale for buying the above mentioned companies:
Narayana Hrudalaya: Inflation hedge + stable margins + good capex plans across India and Cayman Islands
Intellect Design Arena: A leading fintech product company + Winning deals across Africa, Canada, Vietnam and strong recurring revenues
Grindwell Norton: A leader in abrasives + proxy to a lot of sectors like Steel, Bearings, Auto Anc
Jash Engineering: Working in a very interesting sector + strong export order book + Rodney Hunt firing in US!
Cochin Shipyard: Critical sector + strong order book + good scope of getting zero emission vessels from Europe + cheaply valued + dividends
Pi Industries: A steady compounder in the ag-chem space
EID Parry: Playing the sugar + nutraceuticals theme
Ajanta Pharma: New products in pipeline + africa business is a good opportunity
Borosil Limited: Excellent growth in scientific and consumerware segments; likely to grow further at a good pace
Bharat Electronics: Probably the best play self reliance and defence electronic systems
Eris Lifesciences: Cardiometabolics going strong + entry into dermatology with Oaknet acquisition
HDFC Bank: A forever stock
Indo Count Industries: A leader in home textiles segment. Has done well but US inflation might effect sales but long term story looks intact
Varun Beverages: Phenomenal growth + great revenue visibility and strong distributor network
CenturyPly: MDF to grow at a good pace + new facilities to come up by FY24
Sharda Cropchem: Have been holding it but thinking to sell. In a dilemma. Co. has product registratios but margins have suffered. Let’s see how it plays out.
Everest Kanto Cylinders: Playing the CNG story. Also, the recent results have been disappointing but I am betting on the story for the next 6-8 years
Infosys: A defensive stock
Rushil Decor: Playing the same MDF story (I am looking to eliminate one from CenturyPly or Rushil. Haven’t made any decision yet)
KSB Pumps: Interesting company valves/pumps segment in the nuclear + power plants + gas plants
KEI Industries: Playing the capex story through cables/wires
Hi. How many stocks should one invest at a time? I think it would be difficult to keep track of fundamentals of more than 5-6 stocks ( at least for me). Also, how do you shortlist stocks from a long list such as the above?
I think more than the number of stocks, the portfolio sizing matters. For a lot of businesses, you do not need to track it monthly or weekly. Yes, you need to have a look at quarterly results and con-calls but I think it is doable.
For example, I want companies with more than 5-6% allocation in my core portfolio and then I keep on increasing my allocation over the time for the core portfolio companies. For the other companies, it can move up or down based on the results and my perception.
Added S Chand & Company. Implementation of the NEP is a good trigger for the company to grow its revenues and profitability + current paper situation should help an organised player. Looking to add more once we get more clarity on implementation of the National Curriculum Framework (NCF). Company has come out with decent results and could be debt free by the EOY.
Tracking what mutual funds are holding/buying is also a good way to understand broader long term trends and what the big money is betting on. I took some 6-7 good performing mutual funds and have analysed data of their holdings till 31st July, 2022 and what have they bought/sold in the last month. Hope this is useful to the larger community.
