Panda's Portfolio.. Views, advice and criticism are welcome

Hello all,

My first post on this forum.I am reading threads and following it for past four years now and it has helped me immensely on both knowledge front and psychologically. I found Investing and researching stocks to be a very lonely exercise, many times my mind seeks validation/confirmation of investment thesis for a particular stock idea, Valuepickr comes to my rescue in such times.

My investment style has evolved from 2017 till date in three phases.

I started investing in March 2017. At that time i was looking for companies which are relatively debt free, low PE and low Mkt Cap.I was following mainly bottom up approach without paying any attention to the industry trends. I started investing with low amount due to fear and not being confident due to lesser knowledge and no experience of any bull/bear period. I was testing water and being invested kept me in touch with market and tracking of company(whether management guidance is correct or they sell dreams!!). I have lost money (Almost 40%) in the shares i have invested during that time. Some wrong picks were DHFL, Bodal Chemicals, Indian Toners, Satin Creditcare, Alphageo. After holding these shares for almost a year, i sold them off as conviction of me being wrong gets prominent.

2nd phase of my investing was from May 2019. After selling off the laggards in my portfolio, I changed my approach and was now looking for one key extra factor i.e.
Is Growth present in stocks for next 4-5 years? I begin to listening to concalls or atleast read the summary on valuepickr, (so many good souls contribute here).
I should say I invested in some good companies during this time… GMM Pfaudler,Deepak Nitrite, PI Industries, KEI Industries, LTTS etc. But it didnt help me much . As in March 2020, due to the fear of Covid-19 I liquidated my portfolio of stocks (invested in 2019). I bought only ITC during that time. When the market was running ahead I was sitting with cash for correction .In hindsight , one lesson learnt.

3rd phase begun from September 2020. Now, I cant find stocks from my watchlist trading at reasonable valuation. The bull run has begun and in my mind I was still waiting for correction. As my investment journey continue, I was curious to know why deepak nitrite, GMM, PI which i have sold are continuing there rise.I didn’t expect them to rise as much as they did. I decided that i should look at a industry as a whole. Thus, in third phase, i started looking at industry structure as well and then studying the peers. It is after looking at industry structure I realised why Deepak Nitrite and PI has such a good run. When i bought the shares in 2019 and sold them in 2020. I didnt realise what i was doing due to less or little clarity about the industry (or as I say Business Environment of company).

My investment thesis has now took the following shape.
I look for businesses which has nice entry barriers, good opportunity size so that can have long period of growth (~ 10 years), quality management, reasonable valuation(Valuations are a mystery to me…),

Here I present my portfolio I built stocks over a period of time since last 4 year.
Request the members to kindly comment on the same. Please address the following points.

  1. Current Valuations
  2. Regarding no of shares, How can i reduce them? Shall i reduce them? It is difficult to track 20 shares.
  3. Are thesis pointers right?
    4, All suggestions/comments/crticism are welcome.

S No Stock Name Allocation

1 ITC 3.7%
Bought in March 2020, Cigarettes business wont see any growth but is a cash cow which will help FMCG grow. FMCG will grow much larger due there strong sales and distribution network. Nice Bolt on acquisitions. Capex has been done and in order to form strong brand image of any FMCG products in the mind of consumer it needs time. In hotel, they are moving towards Management contact. A good decision

Change in product mix from API to formulation.Strong order book, Customer Stickiness in formulation business. At a good juncture for non linear growth

Expecting a change in product mix with focus on CMS division . If successful will result in Stable revenues and higher margins. Need to look out closely for it


Long proven track record, a kind of monopoly in its segment. Proxy play to Indian Infrastructure growth story. I believe in there brands, it provide such a strong moat. it is not going anywhere.


Largest catalog which will be there for coming times. As digital streaming service booms, the company will benefit due to holding IP. Such MOAT makes it indispensable. Asset Light business with low Maintenance Capex. As streaming service grow, all revenue will translate to margin from existing IP. Dont have any trust in Caravaan though.


Industry leader in Benzene chemistry. Long term Contracts with client. Planned Capex and foray into benzene derivatives and intermediates. With sectoral tailwinds it will also perform good in the next 4-5 years


Reentered again after selling it off. It is a market leader in Phenol. Changed industry by way of import substituion. Management demonstrated ability to execute large project. Foray into phenol derivatives, Intermediates and speciality segments present opportunity for better margin and good opportunity size. Still available at reasonable valuations


The company is into upcoming space of providing Digital services. Repeat business from client. Good Management. Cleint base profile looks interesting . it provides services to many different verticals and geographies . I believe it shows that they are poised for growth… May increase allocation as to how the story unfolds


i was more interested in exposure to the sector to learn and take future positions. insurance Sector is underpenetrated and expects growth in health insurance sector in the next decade. When i bought the shares they were hit by carnage and thought it as good time to enter.


I like the vision of the business as they are building capabilities on technology which will be leveraged by BFSI segments in the future.It tries to provide complete solutions. However, I am more interested in their offerings to insurance sector. how they employ ML for analysis based on data over different clouds. Moreover, SaaS also has potential to provide high growth. I will increase allocation as I research more and understand it further.

11 PI industries 3.4%

Have enetered again. ainly interested in CSM services. In Agrochemicals they are a complete platform. CSM has high entry barrierand provides longevity, moreover, the growth is non-linear. Present in all the right areas where growth is expected in future i.e Herbicie, fungicide. Many unknown drivers may also emerge in future in case of enzymes, nutraceuticals etc. which will be a bonus in long term


The company may be entering the best phase from FY 22. Strong ANDA pipeline. Stellis will be a cash generating machine when demerger happens.

13 SYNGENE 3.5%

CRO emerging as alternative to in house R&D. Largest CRO facility in India and offers platform begining from discovery to manufacturing. It has long term contracts. In its space trust is the key, which is a MOAT in itself. It has upgrades its capacity recently.

14 UGROCAP 4.6%

Well capitalised NBFC; Defined targets for next 5 years; Try to capture SME segment which has a huge opportunity size; The value proposition of the company is in line with the long term Indian Growth story. Management seems to know what they are doing. But need to track closely.


Bought it in 2017 . One of the initial picks. Management has high integrity. Bought it thinking it is undervalued. 4 years later, it is still trading at the same valuations. No re rating. Nothing changed in business as such. I will just leave it as it is.

16 POKARNA 6.2%

Bought it in 2017, as i got excited with the quartz business. Company has had a roller coaster ride. After 4 years the growth story as given by management seems like is beginning to unfold. Have hold it in the period of pain. Will hold it further.

17 RAIN 7.1%

Bought it in 2017 as was available cheaply. The management always keeps on talking exciting things. After 2 years I realize it is a cyclical business and deserves low valuation . But still holding it as the lean period was over and will sell of once i feel the uptrend is over.


Bought it in 2017. The reasons were simple… Robust Balance sheet, trading cheap,Niche players and a market leader in the segment. Planned expansion. Fast forward 4 years , realised its a commodity business, not much opportunity size. Just keeping it as financials has not deteriorated and sector is favourable now.


Everyone knows why. I still believe there is a lot of head room to grow before the growth reach single digit


Invested in 2017, Got sold to the story of being the next HDFC bank. The wounds may be many bu the managment is doing the right things over a period of time but still the pain is there for next couple of years. The boook has improved the base is being built. Now i realise no bank is the next HDFC bank or there is no Next in any business. Tracking business for 4 years i realise the pain of building a bank or how setting things right takes a lot of time. It is a valuable experience and learning (if i don’t get any return, the learning will make it up for me)

My watchlist
Tata Consumer products Ltd
Tata Elxsi
AU Small Finance Bank


Hi, Interesting to see your investing journey. I like your investing approach. You are giving some thought to it. Your portfolio is well diversified. You are a long-term investor and have an open mind to suggestions. I like that you exit the stock and buy it again if the valuation has become cheap. I never comment on individual stocks as it all depends on the investor’s homework, perspective and correlation with other stocks within the portfolio. Valuation is a mystery for the majority of the investors otherwise experts won’t lose money in the stock market, so it’s a common problem. The simple rule is to keep it as simple as possible. So long as you understand your investments, you will make money in the long run. While going through your rationale for holding scrips, I noticed that you are emotionally attached to some of the stocks. You mentioned; you are holding some of them, even though they are going nowhere. Please revisit them and review the rationale for holding them. If they are good, hold them or exit. I like 15 / 20 stocks portfolio, but again, it depends how you built your portfolio and how much time and energy you can devote. All the best, Happy investing.

Thanks for sharing your story. Few questions:

You seem to have mix of companies from v large cap , to small cap with many different sizes. Position sizing also varies a lot. What is the strategy behind this ? Usually there is an expectation that small companies may be more risky so you size smaller etc - but doesn’t seem to be the case here - UGro at 5% and Lombard at 3% for example.

Why are the companies in your watchlist in the watch list ? You don’t seem to mind paying up for the stocks you own, so cos Elxsi and AU appear much cheaper than say Syngene or PI Industries.

On the specific names, think it is a good mix of quality and growth. I would caution against Happiest Minds and esp Intellect Design (not a good governance history of the group) , as there are much better quality stories in smaller cap IT like Persistent , Elxsi, Cyient, L&T etc available at decent valuations if you’re okay to pay up a bit.

With regards to Financials , you’ve reached a conclusion about IDFC so I would suggest acting on it to reallocate to names you feel better about. Curious to learn why AU is on the watch list while IDFC remain on the list despite your caution on it. Also your large allocation to Manappuram when you seem more excited about other names is puzzling.

I have made an observation about PI industries in another thread which lead me to believe it is too highly priced and at its cycle peak - since then stock has continued to climb so from an outcome perspective that post is in the red but I believe the basic points in it are worth considering for long term holders of PI

Over all only observation from my side is that the position sizing relative to your view on the business does not seem to correlate and there seem to be names you’re lukewarm on, so why not cut and add to the names you like best. I think some more clarity on specific triggers or expectations for some of these names would help put the position size and valuation in perspective - if you find valuation hard I would guess it’s because you find it hard to articulate your expectations of the business in slightly more specific or time bound terms - so that would help you decide what you feel about the price vs the risk, and therefore the position size.

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While I do not have a view on specific names, I couldn’t help noticing the massive overweight to Pharma sector (around 25%). Is there a method you use while deciding allocations to the individual companies, considering you are also doing an industry analysis while selecting the investing portfolio?

@vaedermacher Thanks for articulating your views. May I know your reservations against Happiest Minds?