My brother's portfolio

Hi All,

here's I am planning a long term portfolio for my elder brother. Basically this one's is a buy-an-hold passive kind of portfolio. To be held for 5-10 years with minimal churning.

Once/Twice a year will remove deteriorating/non-performing stocks only and no plan to touch the well performing ones.

The portfolio in it's current form is :

Stocks %age Holding
Mayur Uniquoters 29.57%
Hawkins Cooker 14.88%
Unichem Laboratories 14.32%
Balkrishna Industries 12.91%
Kewal Kiran Clothing 11.56%
Opto Circuits 11.18%
Dishman Pharma 5.11%
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All appear to be solid cos . the only cos which needs to be studied more cud be Opto Circuits due to its heavy debt n formidable competitors with deep pocket. Kevalkiran competitors too are formidable with good branding n deep pockets.

Which cos are having minimal debt or on the way to zero debt?

Is there a separate thread for Dishman on valuepickr ? If not this cud be a stock to discuss threadbare as it cud be a good wealth creator riding on depreciating rupee , good demand,good promoter n Indias demographic dividend.

Replaced KKCL with Yes Bank. Kindly give your suggestions regarding replacement ideas, change in capital allocations to the selected stocks.

Replaced Opto Circuits + Additional Cash into Ajanta Pharma.

Ajanta is looking good at these levels.

Excellent switches.

Why not Indusind Bank in place of Yes Bank? Yes is more in Bulk while Indusind in retail with higher CASA. Growth though similar but Indusind looks healthier due to such reasons.

After HDFC Bank, IndusInd and Yes are the two best bets in the private banking space.

It is unfair to compare Yes with IndusInd, what they have achieved in the course of less than a decade is simply amazing.

The current thrust on CASA augurs well for Yes as well. Both from a pricing level, and also a lower base effect, Yes will outperform the larger peers over the span of next 5-10 years. With Rana Kapoor at the helm the chances of unnecessary dilution at cheaper levels seems not likely. Also in terms of asset front, Yes has maintained superiority.

Also, the recent grant of brokerage services and other initiatives caters well on the service income front. Overall bullish for the long term.

Added Supreme Industries.

The current portfolio is as follows:


%age Holding

Mayur Uniquoters


Hawkins Cooker


Supreme Industries


Unichem Laboratories


Ajanta Pharma


Yes Bank


Balkrishna Industries


Dishman Pharma


Hi Rudra, Not sure if Supreme is a good pick at these levels. I think you can look at other more undervalued companies. Long term I am still convinced it is a good stock to hold in the portfolio.

Looking at the current results, expansion plans, thrust on value added products ( now 31% of revenue) the company is available at a decent price (at 13.3x FY13E and 10.5x FY14E it is not cheap at all) with 20-25% CAGR in net profits envisioned over FY13-17.

Piping segment in Q1FY13 ( Supreme has year ending in June) witnessed a 330 basis point margin expansion due to high growth from CPVC ( yoy 90% growth). However, one major problem is shortage of raw material for CPVC in the current and next quarter (from Kaneka, Japan) because of which CPVC growth may remain muted. Expected 30% yoy to 210 Cr in Fy13 over 160 Cr in Fy12.

[Due to the Lubrizol tie up, Astral may be a major beneficiary of this scenario resulting in windfall gains over next 2-3 quarters. The Astral stock has rose sharply over the last month]

Given the healthy cash flows, strong RoE/ROCE seems to be a decent compounder from here on. Specially interested in the outcome of composites ( LPG cylinders and Drill pipes) which could add to incremental growth and margin expansion. Composite cylinders with initial capacity of 5 lakh units per annum expected to be operational by next quarter JFM 2013.

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Converted BKT (9.1%) and Dishman(4.5%) to Astral. Portfolio now reduced to 7 stocks again.

hi rudra,

just on the lighter side - for no logical reason, this reminds me of ‘mere brother ki dulhan’ :slight_smile:

Fortunately managing equities is a much easier task than the later one :stuck_out_tongue:


Wasn’t this supposed to be a buy and hold long term portfolio with minimal churning?

Yes it is. But the under performers needs to be chucked out at periodic basis. If you observe, the good performers are kept untouched (Mayur, Hawkins, Yes Bank…)

It is more like plucking out the weeds and keep watering the flowering plants.

Converted BKT (9.1%) and Dishman(4.5%) to Astral. Portfolio now reduced to 7 stocks again.

No changes. Yes Bank has done really well, only problem is that allocation was low :(

Latest Portfolio:
Mayur Uniquoter
Hawkins Cooker
Astral Poly Tec
Supreme Industries
Ajanta Pharma
Unichem Labs
Yes Bank

Switched Supreme to Amara Raja.

All switches till now working fine.

Planning to add the 8th stock (Kajaria) by reducing Mayur holding to keep more or less equal allocations for all 8.

No changes in other stocks.

Hi rudra I wish I had a brother and generous enough to let me handle his portfolio.

The portfolio would look something like this

1)Gruh finance-20%


3)Poly medicure-20%

4)Techno electric-20%

5)Indusind bank-20%

This portfolio if bought even today can easily beat any diversified portfolio hands down over a period of three years without any churning.After three years I would just go to brother’s house announce him good news and have garam garam aloo paratha made by bhabhi.

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Hi Prasad,

Why not to have the percentages as 30, 25, 20, 15, 10 based on how you rank them in terms of immediate opportunity(next 24 months). For example Gruh in my opinion is priced to perfection at this point of time with all conventional parameters. I generally follow the same strategy and currently Gruh occupies the least weightage in my portfolio.