Hi everyone,
Hope you are doing fine.
I have recently started my career and interested in investing my money for mid to long term.
Quite a newbie but know the basic fundamental ratios to look for. Below are the stocks I am planning to buy. Would appreciate your feedback regarding the same.
General Rationale:
- All the the above companies are either No.1 or No.2 in their respective industries.
- OPM > 15 ; ROCE > 25; Debt to equity < 1 of almost all companies.
- Have gone through correction in past 1 month.
Below is the company-wise rationale:
| Company |
Review |
| Titan |
Market leader. Strong fundamentals. Recently acquired a fitness band startup which might boost sales post covid. |
| Bata |
Has given good returns in the past. Good sales growth and ROCE |
| Marico |
Strong Sales. Sells essential products. Recent correction looks like a good time to enter. |
| Infosys |
Recent corrections look attractive. IT is set to grow in the coming years. |
| Relaxo |
No.2 after Bata. Actually confused between the two. |
| TCS |
Same as Infosys. Good Dividend |
| United Spirits |
Prices are corrected. Strong consumer base. Likely to get a spike in sales after lockdown. |
| HDFC AMC |
Strong management. There could be a surge in people investing in mutual funds once the market recovers. |
Questions:
- Is my allocation fine ? Am I playing it too safe?
- Should I add Tata Elxsi, Asian Paints, HUL, Sterlite, Avanti feeds as well. If yes, how much should be the allocation range? Read kind of mixed reviews for Sterlite and Avanti. Hesitating to add HUL and AP because of high market price.
- Is it a good strategy to buy shares of both no.1 and no.2 in a industry? (TCS/Infosys, United Spirits/United Breweries, Bata/Relaxo).
- Any other stock if missed?
Inputs from seniors like @hitesh2710 @Donald @deevee @dineshssairam would be really helpful. Other members too feel free to point out your suggestions.
Thanks.
TCS/Infosys: It is not the right time to invest in IT, as slowdown and IT spend cut of clients is expected in the light of COVID situation.
Bata/Relaxo: Both are good. Do SIP on every decline.
Marico: Lacks brand fire power. Think about HUL/Nestle.
Titan: It is not the right time to invest, as slowdown in the light of COVID situation and expensive gold makes Titan to suffer sales.
HDFC AMC: Looks good. Do SIP on every decline.
United Spirits: I think you already have enough of Consumer facing stocks (Bata/Relaxo/Marico etc).
What is missing are Pharma and Speciality chemical stocks. All the best.
4 Likes
Thanks Sameer.
I wont be buying stocks so soon. But unable to figure out if this is the bottom or is there more to come.
TCS and Infosys will definitely be affected as most clients are from US and Europe, both of which are heavily impacted due to corona. Waiting for it to fall more.
Titan - Noted.
Could you suggest which companies to look for in Pharma and Chemical ? This sector is something I can’t understand without referring to multiple sources unlike FMCG or IT.
Good stock selection for portfolio… Asian Paints, HUL will definitely add more value and diversification.
1 Like
My sense, more pain is ahead in our markets. So dont jump with lump sum. SIP on every decline is the right strategy. So have cash in hand.
2 Likes
Good portfolio with good quality companies,
just a suggestion kindly also consider to have a company or two from Pharma sector / defensive bets specially as I see concentration of consumer discretionary i.e. Titan / USL .
HDFC AMC is good bet over a long term but must be considered as cyclical.
two companies from foot ware.
Marico - good strong bet , great management however revenue dependency is mainly on hairoil so you may wish to consider FMCG staple player with more diversified revenue mix.
you can take two approach
either reduce the weight of existing to add one or two more and once you comfortable start concentration of bets in PF by making change or start with just 7-8 bets in PF like current ones. its upto your comfort.
disclosure - I also own Marico , USL , HDFC AMC
2 Likes
Hi everyone, hope you all are doing well.
It was March 2020, when I started with investing for the first time. Last year was great learning experience thanks to VP forum.
Since March, I have made quite a few changes since I posted the original portfolio.
Did not invest in some of the names mentioned in the original question.
Below is my latest portfolio:
Currently I am not sure what should I do next?
Should I keep adding/pruning the existing ones?
Or should I look for other potential stocks?
Since I recently graduated, my capital isn’t substantial which again makes me think if I should buy more or wait for correction?
Basically in the process of identifying which type of investor I am. It would be great people here can give their piece of advice on portfolio and on general investment styles.
Thanks
