I wish to share my portfolio with you to have your expert views on the same:
- Granules : 30%
- Ajanta: 8%
- Caplin: 2%
- Repco : 25%
- HDFC BK : 7.5%
- Indusind: 7.5%
Agrochem & IPR(10%)
- PI Ind : 10%
- Amara Raja : 5%
Exited in recent past but kept under observation for re-entry:Page and Gruh due to high PEs.
Just my two cent page & gruh was expensive and may remain expensive in near time till wholesale earning growth comes back in Indian market
Your portfolio have heavy names but its too concentrated on 2-3 sectors. Dont you think you need to diversified sector wise?
Would help if you share whats your expected returns every year, your risk profile, your buy price and how many years you can hold these stocks.
I am expecting 18 to 24% CAGR. My investment horizon is long term of 10 years+. Granules was bought at 85 and Repco at 220. Rest all about 6 months back at approximately current price.
good portfolio. you could divide equally between Granules and torrent
pharma. you should also add some capital goods/infra companies. I have in
mind Indian Hume Pipes which will play a good role in water and sanitation
programmes of the government
good portfolio with some very high quality names.
but i fail to understand this hype about granules.
On the finance, would recommend you just keep only one bank and one nbfc.
In Pharma, I would recommend doing 15-15-10 approach. Having too much allocation in just one pharma exposes you the FDA audit risks. So would recommend playing it safe here.
May be you should allocate 10-15% to some small cap ideas (< 500 cr) as well.
This is a good portfolio with concentration of few good businesses.
About Financial stocks, I also feel that, 2 stocks would be sufficient for such concentrated portfolio. HDFC Bank and Repco look solid businesses with low NPA, high ROE and consistent PAT growth.
Addition of any engineering company may add some value to portfolio, and exposure to this sector may give relatively higher returns if economic turn around and infrastructure growth picks up.
Also, addition of auto stock which is reasonably valued can add value to portfolio.
Thanks for the reply and advice.I will diversify once I get the evidence of cyclical upturn in economy, till then hiding behind safe sectors.
Granules has least USFDA risk and has medium term triggers for sales and margin growth. May not be a 10 year bet but good for next 5 years.
Thanks for the reply. I feel Indusind should do well in falling interest rate cycle over HDFC Bank though there is no comparison of quality among them. HDFC Bank is a solid bank. Hence this strategy.
@vijayM: What are your views on Axis Bank and Yes Bank? I am closely monitoring both for fresh buying due to recent corrections in both stocks. As per my analysis, Axis Bank has more margin of safety than Yes Bank at current levels, but I am concerned about high NPAs in Axis Bank, and also its stock looks more volatile in nature. What makes it attractive is low P/B at this point in time, and loan growth has been good in past 2 quarters. Yes Bank also has a long way to go, in terms of CASA ratio and NIM but looks more promising to me.
Any guidance from you can help me.
I have not been following axis bank closely. Yes bank seems good but be aware of its low CASA and low NIM.