Hello VP community,
I have been investing as a hobby since past 3 years, and after multiple learnings and major portfolio churnings, I think I have arrived at a stable portfolio which I think should do well over next 5 years without needing much changes.
I wanted to cover every major basic theme that can do well over next 5-10 years, and select some of the best stocks to play it.
For every theme, I have listed them as per decreasing order of allocation in my portfolio
I will present a one-line investment thesis for every stock, and my motive to begin this thread is to begin a discussion on the best stock opportunities for every sector with tailwinds.
Most of these stocks that I have selected are based on changing trends/upcoming opportunities.
Would love to hear some ideas outside of these themes/basic stocks.
Angel One: Major discount broker and wealth manager, entire industry set for big tailwinds for decades
UGro Capital: Targets MSME for loans to fill the credit gap, management full of people with very valuable experience of industry.
Infibeam Avenues: Provides payment gateway, setting up team to create AI-based solutions for different use-cases, recently acquired Reddifmail
PayTM: Risky one, but could benefit from recenlty announced ULI if management plays it well.
Sky Gold Ltd: Small-cap Jewellery designer, seems like a better way to play this sector rather than any retail chain.
Dixon Technologies: Major smartphone/laptop/TV (and many other) manufacturer, some call it Foxconn of India
Honasa Consumer: Parent company of MamaEarth/Aqualogica/BBlunt etc. Not a crazy grower but could be a decent compounder over long-term
Exicom Tele-systems: Major EV charger player, recent acquisitions/JVs can help it become a big name if EV cycle plays out well.
UnoMinda: One of the most diverse Auto ancillary co. in India, growing and expanding at a good pace.
Ola Electric: More than it’s EVs, it’s Battery manufacturing business seems lucrative. It’s Gigafactories should provide an edge if management fixes consumer issues.
Olectra Greentech: Pure-play electric bus player, new factory should be running at capacity of 5000 buses anually in 1-2 quarters(orderbook of more than 10K buses).
Gensol: Becoming major EPC player in new-energy related projects (solar/hydrogen/BESS), also creates solar trackers, about to launch Gensol EV.
Himadri Speciality: Produces carbon materials, acquired Birla Tyres (about to relaunch), setting up Li-ion battery components plant.
Borosil Renewables: Biggest solar glass manufacturer outside China, stands to benefit if China’s dumping is stopped in India/US/EU.
Netweb Technologies: India’s only company having exp. in setting up supercomputers. Has massive opportunity in creating infra for upcoming AI wave.
RIR Power Electronics: Setting up new-tech SiC plant in Odhisa with state incentives, diversifying to provide solutions to various industries.
RPSG Ventures: Holding co of Firstsource Solutions IT company, owns “Too Yumm” brand, also owner of IPL team LSG and ISL team ATK MB, owns a luxury mall in Kolkata. Massively undervalued at the time of writing.
Shivalik Bimetals: Creates shunt resistors, which go in EV chargers, smart meters, basically every upcoming sector. See SOIC’s YT video on this stock for better understanding.
Tube Investments: Has presence in commercial EVs through TI Mobility. It’s subsidiary CG Power doing extremely good, also setting up Semiconductor fab.
NIBE Ltd: Recent player in defence sector, seems to have some political links, hence getting major orders without prior expertise. Has set up a new SOTA facility inaugurated by Naval chief. Should have good runway for future since currently only a small-cap.
My stock portfolio is a third of my MF portfolio. I do SIPs in my MFs only, and put some lumpsum in my stocks only when I see an opportunity (long consolidation/correction/extra cash in hand etc.)
Also, the stocks you see here also miss out on some names which I think are worth having. The reason is I don’t usually buy stocks which I know are already having good allocation through my mutual funds (ex. Persistent Systems, Jio Finance).
Another reason is a lot of these opportunities seem very obvious to me, but no Mutual Fund is invested in them, so I am tempted to just buy them directly.
I agree the number is too high, but I have to admit I am still in a learning phase, and don’t have the risk appetite to concentrate my portfolio too much. Having this breadth gives me peace, but yes, I am planning to cut some leaves in a few quarters (some stocks are there just for my FOMO).
As for the returns, I got an absolute return of over 80% on my portfolio in FY24 (stocks were a bit different, I was able to capture the absurd rallies in WRTL, WEBELSOLAR, sold them near highs).
My best performing MF gave 60% that year (Motilal Midcap). So I guess this diversifiying strategy isn’t being that much of a ‘return killer’ we usually think it would be.
Would love to hear the Top 15 picks of anyone reading this (from/outside of my current portfolio)
You should compare investments over a longer time frame, at least 10 years. You will notice that index funds outperform the majority of people’s portfolios.
Updates: NIBE is out, added position in Himadri Speciality. Tube Investments is replaced by EID Parry
Started building position in IDFC First Bank
TIIndia seems to have consoldiated, with majority of it’s growth prospects coming out of it’s subsidaries. Core business is not doing well, and EV business is facing tough competition. Still should do well in long term, but given I already have investments related to these sectors in my portfolio, I find EID Parry (agri + biofuels + foods) a better player. Not only the stock is defensive, but it’s foray into foods business should give good runway for growth.
I’ve recently started to track my Portfolio in an excel sheet as well, which allows me to do some sector-wise analysis and data collection of it’s weekly movement.
Sector wise this is roughly where I am as of now, and as from the table name, this excludes Solex Energy, which is an outsized bet in my portfolio (30% in itself). I don’t look at it much, and focus only on rest of the stocks.
In the past few weeks, I have narrowed down my portfolio heavily on the Green Energy Transition Theme, apart from few name which I think can be emerging winners in some basic sectors. My basket looks like this now:
KP Energy replaced by KPI Green (there seem to be some governance issues in the group, still given their aggressive expansion plan, should turn out just fine).
Tata Power → TARIL, as globally transformers are in huge demand, co. is doing backward integration and PLI also just around the corner. Valuations high but long-term should be good wealth creator. Techno Electric added for power EPC and Data centre biz.
RPSG → Amber Ent: Amber added for PCB/electronics manufacturing, also for it’s heat exchanger biz in Data centres
Have booked some profits in Delton cables after it almost doubled in a short span, and fully exited Ola Electric (bought near it’s record lows), to add: MOFSL: Play on booming capital markets in India. Seems like a forever hold stock. PSP Projects: Very capable infra EPC player, Adani stake acquisition should accelerate growth
