Portfolio review - sudshekhar

Hi Seniors,

I am newbie to the field of stock market investing and have less than 1 year experience with stocks. I have about 25 stocks in my PF and have tried to ensure proper sectorial allocation. Main challenge for me, going forward, is to build conviction and stick to 2 or 3 stocks in a sector. Listed below are my top holdings and my reasons for the same. Would love to hear your inputs. You can assume that the buys happend within the last 2 weeks except wherever mentioned otherwise. My main aim is to achieve 15-20% returns over the next 3-4 years (I know this is way lesser than what VP folks expect but the idea is to learn with an experimental PF first and deploy larger chunks of capital later). Most of these bets are based on the market opportunity and some rudimentary pricing calculations. I have a full time job and thus, mostly want to stick with low-medium risk companies, where quarterly checks are enough.

Infosys 7%
Wipro 2%
HCL 3%
HGS 4% (Bought at 600, currently at 530, wondering whether to add more)

I am aware of the issues currently plaguing this sector but feel that there is limited downside at the current valuation levels. Profits might reduce over the next two years but in the long term saner minds should prevail. plus INFY has been trying to convert itself into a product company for ages, haven’t given up hope that something like this could happen.

DIVIS 4.6% (Bought at 700 levels, then averaged down to 650)
SunPharma 4.8

Again, US FDA troubles are one of the main reasons why the sector has cooled down. Decided to take the plunge considering the size of the market and importance of generics in everyday life. Having been steady compounders in the past, I believe these companies will come out stronger due to these troubles.

SBI: 9.3% (Bought at 180 levels)
Manappuram: 3.5%
Satin: 2.8%
Vijayabank: 3.4% (Bought at 30 levels)

The toughest sector for me to judge. Have no idea why a company does well and why it doesnt :stuck_out_tongue: . SBI is an old holding so sticking with it. Mostly in it for the size of the opportunity.

UBL 3.2%
Godfreyphilips 4%

Another consumption play. I know the regulatory risks involved but believe that these companies have a long runway ahead of them.

Hero motoco 4.1% (Bought around 3200 levels)
Ashok leyland 3.3%

Sectoral play + belief in Hero’s capabilities to innovate. They have been actively looking to pursue/invest in e-bikes (own a decent stake in Ather Energy). Wanted to buy RE but the valuation seemed too high.

NTPC 5.3% (Bought at 126)
Ujaas 2.8% (Bought at 34)

Another sectoral play. Trying to build conviction in the companies above and possibly increase my holdings over the next few months.

RECLTD 4.7% (bonus shares)
Cupid: 6%
Airtel 3% (bought at 320 levels last year)

Cupid is an experimental bet. The age of the promoter is the biggest risk involved but I can see winds of change in the company. Their website has improved, focus on e-commerce and consumer education. Opportunity size is huge. Kind of hoping that the new CEO is somebody dynamic and can capture a big chunk of this market.

I also hold tracking positions in Motilal OFS, Kotakbank, Karnatakbank etc. 20% of the portfolio is cash.

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