..pd..'s Portfolio

Q&A: Questions & Answers Portfolio Q&A
1

Hello,

Here goes my PF:

Jain Irrigation (Agri): 20%

South Indian bank (bank) : 20%

Edelweiss (Brokerage ): 10%

Bilcare (Packaging): 10%

Opto (Medical device): 10%

SJVN (Power): 10%

Meghmani (Chemical): 8%

Akash Optic (fibre/wires) : 6%

Gufic bio (Pharma): 6%

Seniors here, I request you to comment on your views. I would like to add more, probably from FMGC, consumer durable, retail, IT space. And ready to reduce a couple of aforementioned names (loss making Opto, Jain Irri, Edelweiss)> I am also ready for some bashing from seniors :slight_smile: for not putting big names in my PF.

Jokes apart, please share your inputs whether this needs any re-shuffling. Thanking in advance.

2

Hi Pd,

We would like to hear from you on the ratinale for these names. Majority of them seem to be weak businesses. In case of Opto/ Bilcare/ Akash Optic there are corporate governance issues also…

Arun

3

Thank you Arun for coming in. I guess others are not interested in my PF.

Opto was bought long back on the anticipation of FDI in that sector, Bilcare (i am not sitting on any loss here) is because of the beating that it had over years - i read they have some expansion plans and are developing new technologies, although some news are there about fabricated numbers in their balance sheet. I am still positive on it as none of the answer asked by the media went unanswered. Aksh (not akash) Optic fibre is purely on the basis of 4G launch.

4

Hi pd,

Unless you are a contrarian investor, have done extensive research yourselfand have very high conviction level on your stocks due to some research you would have done, I will advise a complete restructuring of the portfolio. This is advise not as someone who has lot of knowledge of these stocks but knowing the fact that their are corporate governance concerns atleast on Opto Circuits & Bilcare. Jain irrigation seems to be on a slow growth path primarily due to lending issues it faced recently. On top of that they have plans for financial arm, which may not be a smart idea.

As yoursisntconventional portfolio in lot of ways,it will make lot of sense topost detailed rationale on each stock so that some Valuepickrs get intrested and discuss on the points that you make in favor of these stocks.

5

If I had to have only one pharma, I would pick one of Alembic, Torrent or Ajanta. Not following any of the stocks above, but agree with Gaurav on the governance issues of a couple of companies.

In Agri, choices can include Kaveri, Rallis, PI Industries, Excel Crop care or even VST Tillers.

6

Gaurav ji: I appreciate your reply. It means a lot.

call me a fool, but neither I am a contrarian nor have I done extensive research (little bit though). However I have read a lot about few of the companies mentioned above.

Rationale behind the stock picks is more titled towards cloning and selecting low priced/small caps. Months back I read ‘The Dhandho investor’ and cloning has stuck in my non-financial (para medical) head. I will try to explain this individually

Jain Irrigation: Not a bad name in the sector. I know some executives in the company and they sound very positive about long term prospect of the company. Cloned - Prof. Manekar bought big chunk around 100+ levels. I have bought it before that and at a lower price.

South Ind bank: Sound and experienced management. I know there is nothing extra ordinary here but the annual report last year looks in sync with the country’s ‘development’ wave. target of 30-35 branch ever year for the next 5 years or so. Cloned- Mr. Pabrai bought around 32. I have bought it before that and at a lower price.

Edelwiess: Founder Rashesh Shah is of high stature in the sector. Cloned- RJ bought around 55.

Bilcare & opto: Nothing but high conviction of some FDI news. I know this is not the right way but still I think both companies will be back on the track slowly. I am not in any hurry. Not sure but RJ still holds Bilcare. I am making loss in Opto.

SJVN: the only stable power company with low valuations. Posted highest ever profit recently. Many brokerage companies came out with buy call. Irrespective of that, I am very positive on this company. Saw Riddham Desai today saying he is very postive on the over all sector because of new Govt.

Meghmani: I have started one new thread for the same. Read Mr. Kohli’s report saying this in on his high conviction list. I have bought it before that and at a lower price.

Aksh Opti: Purely on the conviction that pan India 4G launch will take this company on the next level. Recently they got some order from Rajasthan Govt.

Gufic Bio: My first 2x :slight_smile: unfortunately my least allocated counter. This is what happens to a new bee. Nevertheless, being in the same field I understand their product line and they are continuously recruiting because of new product addition.

Much more to add about each and every company but I would end here.

Complete restructuring sounds bit scary. I would like you and others to share more thoughts on this.