Companies which operate in good industries. Good industries are the one which keeps growing at decent space. If underlying industries keep growing, it’s very easy for good companies to maintain the growth momentum above industry average. (Many times, business momentum is more important than brilliance of the mgmt)
Huge Market Size: If market size is large it can accommodate number of players. Margin pressures are less. In large markets dominant companies can keep growing even after industry matures at the expense of weak companies.
Companies have track record of past performance; good RoE / RoCE. non cyclical. Moderate MCap.
Possibly companies have triggers for Revenue , Margin, PE Expansion.
My portfolio is as below.
I am not overly worried on companies being expensive or portfolio being concentrated.
- Repco - 25%
- Granules - 25%
- Page - 20%
- PI Industries - 15%
- Torrent Pharma - 15% ( new entry to portfolio)
Over a period of time want to add one more company at 10-12% of portfolio by reducing 5% from Granules (weight has gone up due to recent price appreciation) and couple of percentage from others.