Newbie Investment Portfolio: Suggestions & Ideas Requested

So I have recently started investing in the Markets. Im a 23 year old CA by profession & a salaried professional . Knew stocks markets for long . Was hooked to markets when as a 6th grader when the bull run was live and was interested seeing my Mom doing investments.This interest frankly led me to choosing Commerce background. But after the 2008-09 fall where my family too lost a lot of their earned money dint dare to think of markets and I kept on focussing on studies . My idea of reentering the markets came when the FD rates started falling . Though 7.5% without headache was maybe satisfactory for me the reducing rates to 6.75 to 7% made me rethink my decision.

What are my expectations from the markets. Make my portfolio grow with an average of 10% to 15% . Anything above the FD rates. Investing has started from December beginning and only in Feb March and April have I increased my portfolio size and invested capital .

My portfolio is basically revolving around investing in a mix of time proven rewarding businesses as well as a few high growth stories . Sugar sector and maybe speciality chemical are the only 2 sectors which maybe cyclical in my invested portfolio .

Current Portfolio

Investment Rationale for Each Company

UJJIVAN - Positive on the transition from MFI to a Small Finance Bank . Most geographically diversified MFI added advantage. Impressed by their investment in IT Technology (300crs) to make it reach the next level . Fully capable management and Samit Ghosh experience does make a difference .

CRISIL - One of the most consistent companies in India . A growing industry an a clear growth story for the long term . Valuation was fair for an expensive market . Dividend yield of 1.4% makes it an added advantage

ALPHAGEO - Bullish on the overall business model . The goverments NELP policy and the huge order from ONGC is the reason for my investment heavily in this company. Also I feel this is not one off order and the coming months most probably will see more orders coming from ONGC and others. The 2D mapping needs to be followed by a 3D mapping which gives this script a Margin of Safety to be invested in.

DWARKESH - Dwarikesh one of my first picks in the Stock Market . Invested at 290 levels and moved out at 389 making swift gains . Again studied the fundamentals and the current trends and reinvested at 399 . Holding it since then. This might be there a few more months in my portfolio as this is purely a cyclical play im betting on for quick bucks

CASTROL IND - Castrol amazing ROE ,ROA ,Dividend Yield . Time proven business . Got for a fair rate post the demonatization around December End. Though im bullish on the Electric Cars and Cleaner technologies for the Future but nothings going to change overnight especially in India . So being invested with a vision of 2 years atleast .Bonus issue this year end can be a trigger to take it to new highs.

VOLTAS : Another time proven business . After the Tata Cyrus Fiasco and demonatization got into VOLTAS . Bullish on the Management and seeing the summer season upcoming thought of investing in this company .

AJANTA PHARMA : Sold of Aurobindo at nominal loss due to the USFDA issue and got into Ajanta . The companys management, their lower exposure to US currently and their opportunity with US markets got me interested. Aurobindo wasnt that I lost faith , but with the current USFDA issues I think it can be a little difficult for it to be a market leader in the Short term,.

REPCO HOME : Invested initially in PNB Housing Finance when it was languishing at 800 range and sold it when it shot up to 1130 levels . Dint get an opportunity to buy it once again when it cooled down to 1000 odd levels . Repco again a unique play in Housing Finance . Their focus on entrepreneurs and non salaried make it a unique play .Again a good proven management.

ADANI PORTS : Invested recently when all the Adani Scripts came tanking down. Though still near its 52 week high the higher focus on Ports by GOI seem to be a trigger for me . This bet was much more of a bet on an industry and this buy had lesser conviction on the stock. But being a part of BSE50 I pulled the trigger

LLOYD ENG : Bought post the Sale of Consumer business . Got a lot of conviction from the fact that they are focussing on niche areas from the Investment proceeds which will only increase their Gross Margins in the longer run . AC Trains and Defense sound some good things to hear. Also that the management turned a 15 cr brand to a 1000-1500 cr brand in less than 5 years gives me a huge interest in their commitment. Though their management was tight lipped on the Havells deal in the call transcript I think the story is to play out in the coming years.

PERSISTENT : An amazing IT company available at an Amazing price . Started adding at 600 and added more at 560 . The company is a leader in Digital Technologies and Cloud Techs. Saw their Glassdoor reviews and Employees are a key for me to Investing in any IT . The future is digital and this is was a stock I could bet on without any doubt . Though the VISA issues and looming darkness in the IT Sector remain for the short run , I feel companies like Persistent can survive the Tide and come out winners

SHREE PUSHKAR : Can be said a bit of cyclical a bit of structural change play. What encouraged me investment in the company is the Management. Heard their concalls and their way of being Investor friendly and informative is surely what other Small Companies need to replicate. Their expansion and their Integration and textile dye is a key driving factor

SHARDACROP : A asset light model of Caplin Labs combined with generic drug like business in the EU ,US and LATAM is what I can say if I have to put Sharda in a few words . Its a manufacturer of agrochemicals which are ending their patents. This play is on identifying fertilizers at the end of life of their patents , getting EU and US approvals , manufacturing for cheap in CHINA and selling them under their Brand in EU and US . Huge opportunity in coming years and nor does this face the risks like USFDA .MF investments only boost the trust in the business and industry

GHCL : Disccused well enough in ValuePickr . Negative being the promoter due to which the prices also might be undervalued . But a cash rich company with also a Textile division which may wait to be demereged this play is something I will look at in future.

The businesses I held and sold off

VGUARD : The high PE post the Bonus Decision dint give me much comfort . Once the valuation settles will look at reentering . Again an amazing play with honest and investor friendly management . Their consumer business is growing rapidly and will surely be a bet for the future

VAKRANGEE : Again an initial investment which I invested with their model of Vakrangee Suvidha Stores and Goverment backed projects . But somehow seeing their cash flows till 2015 gave me a red signal to the business.

AUROPHARMA : Due to USFA issues . Staying clear being a newbie

PNB HOUSING: Invested around 800 levels booked profits at 1130 levels . Might reenter if again it comes down to 1000 levels

Sector / Companies being eyed currently

Automotive : Maruti Suzuki a leader among the auto space , M&M or Tata Motors

Retail : PC Jwellers . Unique story of retail jwellery

Infra / Cement /Defense :Cannot identify a winner currently.

Request members to suggest changes and carry on a healthy discussion .


Hi Nabendu,

One suggestion is not to sell any stock because its got a bit expensive and if you believe the growth story is Intact. For Instance you sold off V Guard and PNB Housing because it got a bit expensive and as per you the story had not changed. If you are looking at 10 baggers-20 Baggers you need to curb the temptations to sell the stocks when there is 50% or 60% percent appreciation if the story has not changed.The real compounding effect will come in only when hold stocks for long. Right now you have 15 stocks in your portfolio once you get bit more experienced you may want to reduce it to 8-10 high conviction ideas.




The portfolio is good but does not have any banking stocks

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Hi Nabendu. Want to discuss castrol in detail. Could u give ur mail id

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excellent suggestion provided by you. Just like most of the new investors I commited the mistake of pulling the trigger to early. Both the Investments would have been handsomely rewarded me if i would keep them . For V-Guard it would let me an 10% approx further gain and for PNB another 20% approx gains as the price stands today . I did not lose conviction in both the themes and only the share price was the thing which made me pull out . Will keep this in mind for future investments .
Also as you said yup might be I might bring down my portfolio to a managable 10-12 stocks as time passes by. A few businesses I have gained conviction about , a few others in my portfolio are there because they are good busineeses and were beaten down due to some or the other reason . I would like to reduce or eliminate those businesses where the conviction is less and move into businesses that would surely deliver in the long run.

Yup I have been lacking a banking sector stock. Dont know which one to buy . Was looking YES Bank but the premium valuations dont give me comfort. If there are certain picks from the banking sector which you could personally ask me to have a look at it would be wonderful . Karnataka bank is disscussed in the forums . Will need to research that . Also recently Kotaks thrust on bcoming aggressive to survive and grow does look a good story if they can deliver . [quote=“sarthakkumar19_, post:4, topic:10076, full:true”]
Hi Nabendu. Want to discuss castrol in detail. Could u give ur mail id
Will drop you my mail id in PM .

Hi u could look at RBl bank ,yes bank on falls.Even i missed them…but would definetly buy them on fall…

Hi Ajit,
Pl share your views about Ujjivan, LT Finance, Karnataka Bank.
All bad news are discounted for ICICI so why not it should be considered taking contrararian view.

I feel ujjivan and karnataka bank would definetly do well in the coming years though slowly…along with IDFC bank…
Regarding LT finance ,i am not tracking it.yes icici bank could be bought as a contrarian bet…but i feel there are better banks available

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Nice to see your portfolio. As you mentioned you are new in to the market, so it is a learning phase.
Even I am in almost similar situation like you. started MF 1.5 years back, now slowly moving into direct stocks, every month keeping aside small portion of surplus income as cash to buy good quality stocks. It is a learning phase for me. Reading and learning a lot of this forum. I am very late in finding out about this nice forum.
I am not all into trading, I want to invest for a long time, hope to find the next HDFC or symphony!

btw, I am not invested in any of the stocks mentioned above, but I am looking closely at RBL, persistent, being in this IT sector for some time, I feel, persistent, and KPIT are a good bet in the long term!

Happy to see a young pickr picking such good picks…My 2 cents…Dont marry any stock…and what my mentor told me - Only ur booked profit belongs to u, rest belongs to the market, its ur only cushion, apply fundamentals in a dead/bearish markets…Bullish and trending markets always reward technicals as u would hve noticed in the last 4months of this a life long journey…Happy Investing/trading…U can use my below portfolio for any picks that I intend to hold out

  • Satin@325
    -Phillip Carb@225
  • KEI@170
    -Tata Elxi@1526
    -Surya Rosh@209
    -CAPF, Wabco, 3M, Bajaj Fin -I just might end up marrying these ones :smile:
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Occl I was tracking but it shoot up till the time I was covering it . The promoter is a single family and it’s their only business gives me strength on its future prospects .

thanks a lot for providing the picks. Will go through each one of them you suggested. Was stuck with work and priorities in life so couldnt answer out here . Tata Elexi , KEI , Omkar ,Bajaj,OCCL were on my list as well but somewhere dint pick those. The pharma valuations are making me hooked to the sector but the negativity around is something which is not helping. Also my non awareness of the complex landscape these companies operate in make me wary of taking more positions .

My only change in the portfolio has been selling Ujjivan the very next day after results in the morning at 383 . Dint lose the story but the bad results made me feel that the company might see lower levels in the days ahead. Any opportunity to buy between 280 to 300 I intend to grab provided the financials improve which i feel is 1 or 2 quarters away.

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Others that I am looking at now are Suzlon, Sanghvi Movers, Gufic, Castrol , Balaji Amines, UFO Movies, Eros, Fiem and Capfirst after results reaction…also have moved significantly to cash

I had researched a bit on fiem . I think it’s the led business which is denting their growth trajectory . The super competitive retail led business doesnt give me courage to invest in fiem .capital first I haven’t tracked but with premium funds like Warburg Pincus and now GIC into it surely one wouldn’t lose much .Accleya Kale again seems an interesting bet for the future as i was talking about investments by Warburg Pincus . I’m planning to reinvest in PNB housing if it falls to around 1200 levels . Suzlon I haven’t tracked and really not one of sectors I would invest in . Have been an auditor for Nupower a competitor and see the capital intensive business as a downside . Also the falling prices of wind energy do not give me confidence of the profit potential if India switches from conventional to solar . Electric vehicles in the long run is the next big thing but still I am in the hunt to find the next big name . Mahindra knows the Indian ev market better than others but there’s no gurantee of it succeeding the likes of Suzuki , Toyota , Honda and Tesla . I’m much more positive on companies setting up the power stations and manufacturing the batteries . Airlines could also be the next big thing in the coming 5 to 10 years . The middle class population is growing . connectivity and cost of travel is much better, the governments thrust to increase air travel and the stability in prices of aviation fuel due to increase in ev worldwide .

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