Portfolio theme 2030

Respected boarders, I am very excited thinking about future of our country. Feeling thrilled thinking about Sensex growing at a modest CAGR of 15%, and reaching 1.5 lakhs by 2030. My stock portfolio is aimed at reaching 10 times my current investment in 15 years at 2030. I would highly appreciate fellow boarder’s guidance on percentage allocations, possible re-shuffle etc.
As you could see, my portfolio is ‘inspired’ from a wealth creation study of a broking agency. I have completed one year of successful sitting tight, no churning, patient waiting. 14 more years of the same and I will be done. I hope it is worth the wait and I have already built conviction in the stocks that I own.
Company Allocated, % of total portfolio since Jan 2015 (multiple purchases), Present % of portfolio as of Jan 2016
Shilpa Medicare – Oncology Research -APIs & Intermediates, formulations 15.01, 13.06
Suven Life Sciences - Bulk Actives, Drug Intermediates & Fine Chemicals 14.42, 10.90
Granules India – Bulk APIs, PFIs, tablets 12.94, 16.25
Tata Elxsi – Embedded product design, Visual computing, Industrial design, system integration 12.88, 26.91
Atul Auto – 3 Wheeler manufacturer 12.46, 9.06
SKM Egg Products Export – Egg Powder, bakery mix, liquid egg 12.33, 9.49
DCB Bank – Emerging private sector bank 10.12, 6.06
Aarti Drugs – API Essential drugs-dermatology, ophthalmology, antibiotics 9.84, 8.27

My concern is that I have high allocation to pharma. But then, pharma is divided between four companies and hence I assume that the risk is spread.
Pharmaceuticals 52.21%
Technology 12.88%
Automotive 12.46%
FMCG 12.33%
Finance 10.12%

I hope we all can be winners in the boom ahead irrespective of sectors and stocks. Have faith and think long term if you could.
Awaiting comments. ( Sorry about the table above. I lost the prepared format and I couldn’t find guidelines to get it back). Thanks.

2030 is too long time frame. You have to set few milestone of 3-4 years and see the performance of each sector, gov initiative, tailwind etc.

Currently market is in transition phase. Few new sector might get the leadership for next 5 years prospect. We have to find out the correct opportunity this year. Pharma and Fmcg had very good run but now only selective pharma will do well as per current trend. In your portfolio, major allocation is in pharma which has to be reduced and invest into Infra/Smart City related themes Like kajaria,Cera, Somany, Asian Paint, Pidilite etc.

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Thank you @amitnagar for your valuable comments. Even though, my borrowed conviction ideas look sustainable in quality and growth for a long time it makes a lot of sense to assess performance on a 3-4 year basis. Planning to reduce pharma allocation by adding to other sectors when I have cash available.

You can look for 2 sector.

  1. Infra/Home Improvement/Real-estate growth related stocks like Kajaria, Somany, Cera etc

  2. Textile Sector which recently seeing turn around. Few stocks like Indo Count, Kitex, Premco Global etc

I don’t have faith on banking sector now. You can still look for NBFC space where Bajaj Finance, Capital Trust looks good.

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Except SKM egg products,rest is exactly the same set of stocks mentioned in MOSL 100-bagger in 2014

I would bank on pharma sector for portfolio theme 2030.
take 10 pharma stocks (preferably B2B) and spread among them.
as per history pharma i evergreen…

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Now, I have completed 3 years of investment journey and have modified the portfolio as per below


I have sold Atul Auto and Aarti drugs and bought below companies for the reasons stated

Aditya Birla Fashion and retail limited - Consumption theme, turn around, value unlocking
Ramky infrastructure- Higher Infra spending, Debt reduction
Cosmo Films- Cyclical play, capacity addition
Websol Energy - Renewable energy push

Pharma is now reduced to 36.3% from earlier 45%.

three year performance of 28% return (approx. 10% CAGR) is mediocre compared to composite index returns. Expecting a much better year ahead.

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