Portfolio advice needed from seniors

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

Hi Seniors,

I am long term investor (> 5yr) and I hold the following portfolio. I would like your views on whether to add/drop certain companies from this list. As of now I am increasing my stake in Pharma and Auto.
I do not invest in large caps generally because that part is taken care by SIP in MFs.

–Pharma (33%)
Ajanta Pharma
Strides
Suven Life

– Auto (37%)
Amara Raja
Ashok Leyland
Atul Auto
JBM Auto

–Textiles (9%)
Donear
Trident

–Rest (21%)
Camlin
Dai-Ichi
Gruh
Surana Solar
Genus Power
Technocraft

Thanks in advance,
Somnath

2

@hitesh2710

I have posted the portfolio as a new thread. Can you please have a look?

3

Next step should be to put in a few lines of justification on why you have invested in those companies. That should help you to clarify your thought processes.

4

Hi Hitesh, @hitesh2710

Thanks for your kind reply. Please find my comments below.

–Pharma (33%)
Ajanta Pharma – have not penetrated US market yet. Huge Growth opportunity. Good past track record as a wealth creator.

Strides - Constant value creator. I am holding this stock for long time. Have benifitted from huge dividends in past.

Suven Life - CRAMS player with good margins. It has also good NCE’s lined up. Conservative and truthful management.

– Auto (37%)
Amara Raja - Duopoly player in India. Has given me good returns so far and so I intent to increase stake.

Ashok Leyland - Has given me moderate returns so far. The company seems to line up for good growth going forward.

Atul Auto - Has given me moderate returns so far. The company seems to line up for good growth going forward. Not penetrated many key markets within India. Opportunity to grow. Good management.

JBM Auto - Has given me very good returns in past few years. I have repeatedly sold and bought this share in good numbers, realizing good profits. I am holding it because their business is set for a transaition from an auto component player to a full fledged bus manufacturer with backward integration.

–Textiles (9%)
Donear - I have taken a small position in this for tracking. They are going in for 2000+ retail outlets as per one report.

Trident - Has given me moderate returns so far. The company seems to line up for good growth going forward.

–Rest (21%)
Camlin - I have taken a small position in this for tracking.

Dai-Ichi - I have taken a small position in this for tracking.

Gruh - Has given me good returns so far. The company seems to line up for good growth going forward. HDFC’s name.

Surana Solar - I have taken a small position in this for tracking. With focus on renewables, specially the clause that 30% of panels has to be manufactured in India. I anticipate growth going forward. Actually I was split between this one and Ujaas, but at the end settled for this as I am not comfortable with pure EPC players due to their huge capital investments and long gestation periods.

Genus Power - I have taken a small position in this for tracking. Giving me good returns so far.

Technocraft - I have taken a small position in this for tracking. As you probably know, this company is into disparate business (drum closures, scafolding and textiles. So I anticipate demergers in future - so value unlocking.

I am in my mid 30s and my intention is to increase stakes in these companies for next 3 to 5 years with around 5 or 6 lakhs/yr (max) after my PPF annd MF investments. Of course all will be subject to periodic reviews.

Thanks in advance,
Somnath

5

Donear is a good stock to hold with great results in the offering. PlI scheme approval will add to its gains. Hold and add I would feel would be right approach.

6

@amikap Don’t know much about it. Would definitely research and consider. Thanks!