Hi @valuelife
I do not know of your current portfolio but I am going by the first post you mentioned. So as requested I will try to give a view on what I can make out and also on those stocks I track.
First things first you need to know that if you have a 100 rupee portfolio how much are you going to keep in equity and how much in debt (FD/Liquid etc.). This is as important as getting stock selection right imho. I have my own views on this and everyone has to develop his own individual philosophy I think.
So that out of the way. I would next suggest do maintain your portfolio systematically.
- Cash Flows in and out of your portfolio
- Dividends
- Any bonus split
- Calculate CAGR, Sharpe Ratio and Beta of Portfolio. This will become very helpful at a later point of time.
Next do a sector wise split. Here it seems you are fairly balanced.
I would recommend to split (mentally) the portfolio into 2 parts - a core part and second a satellite where you have your bets like Crompton (turnaround bet in this case).
You seem fairly well concentrated but personally there are a lot of FMCG names 1/3rd of it. Over time I would perosnally have reduced this. More importantly so your buy prices are all at the peak. Sorry to say in hindsight this could be a bad thing. So think about it. FMCG will be very stable but could not give great returns you are looking at. Keep some of it in core part and where you dont have conviction move it to satellite and then out completely.
Coming to stock wise. My views are personal for the ones I track.
HDFC Bank: Your buy price is ok. But I think you will get a chance to add in the coming quarters. This is ‘the’ best bet on the Indian banking sector. Currently there are headwinds and I would give most of the deratings by analyst a pass if my timeframe is 5+ years at the minimum.
Kotak Bank: This is the only other bank I would like to bet on. I think this too you have bought at a high price. Its currently very highly valued. But here the bet the market is making on is the jockey. Good to have it in a portfolio.
HDFC AMC: This might also have headwinds. And your buy price seems high. But out of the AMCs HDFC AMC & Nippon in my opinion are the ones to go after in this theme.
ITC: This is a pure valuation play. And it is a consensus buy amongst us value investors. There is an excellent article on medium which was floating around, do read that. I don’t know how much pain remains for ITC though.
Asian Paints: This is the best paints company in India but I think it is trading at very steep high valuations. I do not know if it deserves so. I will have it in my tracker but not sure if it would give good returns with the current valuations in the future.
HDFC Life: The life insurance space again could have headwinds now. But I think though HDFC Life is the most valued.
Dmart: Those who hold it swear by it and those who dont expect a collapse every day. Your buy prices is very high I think and it might turn out to be a bad investment in an otherwise excellent company.
Stocks I dont track: Colpal, Britannia, Marico, CCL, TCS, Crompton
So overall a good set of companies but I think equity debt matters a lot because at the right price you will be able to become a part of exceptionally good businesses. Do explore a few smaller cap businesses which are either going to have earnings jump or re ratings. There is one post by a gentelman on VP on what we should look for. Let me find that put a link to that here. Its an excellent post.
Here it is:
Why I say have a sattelite portfolio because those can serve as trading bets. For instance I had a few companies like GMM Pfaulder, Aarti Ind, Alkyl Amines. Now in my opinion say a GMM is trading at valuations like FMCG companies 70x or so.
I am not advising specific stocks.
Let me know if you need some more inputs on the portfolio.
Rgds and all the best.
Deepak