Piyush's Portfolio- inviting comments

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

Dear Friends,

I have been investing in stocks for last 10 years and have joined VP recently. Though I used to study analyst reports etc in the past, I have recently started reading investment books to gain indepth knowledge and contribute in the VP forum. I would like to invite your views on my portfolio.

SCRIP % portfolio
AIA ENGINEERING 3.6
ASTRAL POLY 3.3
AVANTI FEEDS 2.3
BLUE DART EXPRESS 2.4
HDFC 11.8
KAVERI SEED 2.0
L&T 17.0
MAYUR UNIQUOTERS 1.9
MOTHERSON SUMI 2.8
PAGE INDUSTRIES 3.8
PIDILITE INDUSTRIES 1.7
PVR LTD 2.1
RALLIS 1.6
RELIANCE IND. 15.0
SOLAR INDUSTRIES 2.4
VA TECH WABAG 1.5
YES BANK 17.0
Cash 7.9

Comments on some of the stocks. They may be biased as I own them.Many of them are not cheap in valuations so your views will help to restructure my portfolio:

- Blue dart... likely beneficiary of GST implementation as industry will move from unorganized to organised, will benefit from booming e-commerce. only logistic company having their own aircrafts.

- Reliance Ind: Sleeping giant but expected to do well as retail becomes profitable. Strong and dangerous moat as NDA government is against entry of FDI in multi-brand retail so weaker player will not survive and MNC's can't come, shale gas business doing well, gradual reduction in Diesel subsidy will help it come back in petroleum distribution. Telecom may be drag.

-PVR: expected synergy after acquisition of Cinemax. Will have more negotiation power as it has largest number of screen. Screens at key locations gives moat.

- Solar Industries: I think they are largest explosive companies in India. revival of economy will help.

- Yes bank: expanding rapidly, profitability expected to increase as % of CASA deposits increases with expansion.

- VA Tech Wabag: Indian MNC. Expected to have long term benefit in water management industry.

- HDFC: Consistent performance, indirect exposure to HDFC Bank and Gruh, % profit contribution of Insurance subsidiaries increasing gradually which will give stability in earnings.

60% of my portfolio is in 4 stocks: Reliance, L&T, Yes bank and HDFC. Is that fine?

Will appreciate your comments on quality, and suggestions on removal/addition/changes in % allocation to my portfolio.

Regards,

Piyush Maheshwari

piyushm@gmail.com

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Piyush, Ask yourself, how these stocks are going to give you a market beating returns? Also ask yourself how much do you know about the companies where you are invested? The answers will guide to you to a better portfolio.

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Manish, Thanks for your comments.

4

Dear Team,
Following is my portfolio. I really want to cut-down the list so really need advise from other VP members about which 5-7 stocks should I remove.

Pasted image430×501 10.5 KB

Thanks a lot.

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Will sincerely appreciate if I can get some feedback. I really want to have more focused portfolio.
Thanks in advance.

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Most of the companies are good companies.

You can take a call on the valuations of companies to decide their attractiveness.

And you can also get rid of companies likely to face some headwinds in future e.g motherson where some amount of headwinds might persist due to VW troubles.

And dont reduce the no of companies just for the sake of cutting down no of stocks in PF. If the company is good it might make sense to stick to it.

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7

Hi Piyush,

The only three companies where I am doubtful are: Astral Poly (rich valuations), Kitex Garments (circumspect corporate governance) and Motherson Sumi (Volkswagen issue capping potential).

Regards
Aditya

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