I will shortly add my full portfolio
hi @Pragnesh if you are comfortable in sharing average price for your holdings, it would be great too.
Can you also any anti-thesis for ganesha eco and your thoughts behind having it highest/major allocation.
Personally I have been impressed with ganesha but only promoters % holding is below 50% which could be risky and lot of public float available. Even my view contradicts with nature of price cause I noticed it got very less hammered in past few months
You can see latest portfolio in post no 59- 61 of this topic
Promoters of ganesha are buying shares from open market.That gives confidence on company
My updated portfolio with avg buying price and average time of purchase
1…Pix…(Rs 925)…(6.0%)…(Feb2022)
2…Acrysil…(Rs 190.97)…(5.9%)…(dec 2020)
3…Pitti eng…(Rs 290)…(5.9%)…(may 2022)
4…Beta drugs(314)….(5.9%)…(April 2021)
5…Ganesha eco(Rs 545)…(5.9%)…(april 2021)
6…Hindware…(Rs 385)…(5.9%)…(dec 2021)
7…Astec life … ( rs 1017.39)…(4.9%)…(Aug 2020)
8…Lt food …( rs 45.18 )…(4.8%)…(Dec 2018)
9…Kei ind…(rs 405.25 )…(4.8%)…(Dec 2019)
10…Moldtek pack…( 259.20 )…(4.5%)…(April 2019).
11…Racl(Rs 511)…(4.5%)…(oct 2021)
12……Paushak …(rs 2615)…(4.5%)…(June 2020)
13…Apcotex …(Rs 191.62 ) …( 4.2%)…(May 2019)
14…Grauer&weil …(Rs53.06 )…(4.2%)…(July 2018)
15…Anup…(636)…(4.2%)…(May 2021)
16…Stylam(1072)…(4.2%)…(Aug 2021)
17…Jenburkt ph…(.rs 620 )…(3.2%)…(Nov 2018)
18…kpr mill……(rs149)…(3.2%)…(oct 2020)
19…Ion ex ……(rs652.14 ) ……(2.7%)…(Dec 2019)
20…Ratnamani …(.rs 1298 ) …(1.8%)…(Feb 2020)
21…Auro lab …(rs 68.72 ) …(1.6%)…(Oct 2018)
22…Suven phar …(rs 251.64) …(1.5%)…(Aug 2020)
23…Ccl products …(rs 270) …(1.4%)…(Feb 2019)
24…Alkyl amine@ (791.56)…( 1.2%)…(June 2020)
25…other stocks… …( 1.5%)…(2017-2018)
=Portfolio is 82% up of invested amount and 23% down from all time high
=Investment is done in staggered manner from sept 2017 to uptil today with buy and hold approach
(HOLDING OLD STOCKS AND BUYING NEW STOCKS FROM FRESH CAPITAL)
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Adding Racl geartech
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Hi Pragnesh. First of all wonderful portfolio. Made a watchlist of all your stocks and tracking it. Fan of your investment philosophy. You have provided many good options to explore and study. (Take it as a compliment). Have a little question: Have few thousand rupees and selected some companies and want to know your views on them.
Au small finance Bank, intellect design arena, Everest kanto cylinder, Godawari power, Nitin spinners.
And 1 thing more. As I said I made a watchlist of ur portfolio. Can u help me, how to understand these companies business in simple language (in layman language). Any video source, blog or anything other.
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Thanks for compliments
I had posted my thesis on various companies on their respective threads
Sorry
But i had not studied Au small finance Bank, intellect design arena, Everest kanto cylinder, Godawari power and Nitin spinners.
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It’s ok. Thank you for your reply.
Sorry but i do not get much time to study other companies in which i have not invested.
But following r at reasonable valuation and one can invest same amount in each(As we dont know which is much better and will click more than others)
Pix
Acrysil
Beta
Ganesha
Hindware
Lt foods
Racl
Anup
What i do is diversification in atleast 10 companies for small fund and atleast 20 companies for medium to large fund
Reasons are
1…As retail investor, we never know what is cooking inside
2…All companies are small cap ,so risk is also high
3…My duration of investment in company is long(may be 5-10 or more yrs)
Once i invested in any company , i dont exit for bad results of 2-3 yrs or minor problems inside.
SO MY THESIS IS
1… ADDING GOOD SMALL CAP COMPNIES AT REASONABLE VALUATION
(ONLY GROWTH COMPANIES,NO TURNAROUND,NO CYCLICAL)
2…STAY INVESTED FOR LONG(5-10YRS OR MORE)
3…DONT SELL FOR MINOR HICCUPS
IF 60% COMPNIES PERFORM GOOD, PORTFOLIO WILL BEAT INDEX
=By the way who cares about beating index, its my money .Even funds never beat index all time.
(Courtesy of book “100 baggers”)
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Dear Pragnesh, How can we check cyclicality in any industry or company?
I think there are more no of stocks in the portfolio. It becomes very difficult to manage such type of investments.
My 90% holding in 18 stocks
I think, when your size of portfolio increases as compare to your other asset, your portfolio should be diversified in atleast 15 to 20 stocks
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Dear Pragnesh, Is this answer for aayush ji.? My question is about cyclicality.
=Cyclicals are of 2 types
A…Commodity
-like steel, cement,paper etc
-I try to avoid commodity type cyclicals
B…Cyclical behaviour as per economic cycle
…
Cyclicals have
1…Operating margin
Cyclicals have fluctating margin
While growth stocks have stable or increasing margin with minor variation
2…Profit and sales
=Cyclicals have yrs of increasing and then decreasing profit and sales .While growth stocks have increasing profit and sales
=During up cycle ,cyclicals have rapid profit growth.
3.Moat
=.Consistantly growing @20% cagr companies have some wide or narrow moat . While commodity cyclicals dont have moat.
…
=I stay away from company having
1…Comany having growth of >25%
2…Operating margin suddenly increases with huge margin
3…Company dont have even narrow moat
These will differentiate upcycle of cyclicals from fast growers
…
For calculation of growth rate, I normally do average of 3 yrs of profit and then compare it with previous 3 yrs ,5 yrs and 10 yrs
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About Growth
1…I like small company growing @20-25% cagr
=Profit growth@20-25% cagr
Sales growth>10% cagr
=Growth>25-30% is not sustainable.
If such high growth company has 1 to 2 bad quartes,market reacts very negatively to them
Peter lynch quote
'WHILE 20% GROWTH IS SUSTAINABLE OVER LONG DURATION AND THEY GIVE HUGE
RETURN ,ESPECIALLY OVER A PERIOD OF TIME. THIS IS THE REASON WHY 20-25% GROWERS ARE MY FAVOURITE STOCKS"
2…Conistent growth since 10 yrs
=In covid time, many people have entererd in companies which have shown suddenly good results otherwise no previous growth
=Same way, previously growing at 10% cagr companies have started growing 40% -50%.
=So we have to differentiate these temporary growing companies due to demand -supply mismatch from consistantly growing company with inbuilt earning power and moat
=One important feature of these companies with in built moat is their stable or increasing operating margin
3…Not always growing
=Company may have 1 to 2 yrs of bad results.I generally give some time before exiting.Because my belief is that it is not possible for company to grow in each quarter or year. There may be stagnant yrs in between
So i do average of profit during calculation of growth
4…How to calculate growth rate
=I generally calculate sales ,operating and net profit and calculate growth for 3, 5 and 10 yrs
=Suppose if we are calculating 5 yrs growth calculation from 2016 to 2021
First calculate avg of 2015,2016 and 2017…Then calculate avg of 2020,2021 and 2022…Then calculate cagr growth in cagr application
5…Operating growth
=Sometimes company may have higher depreciation or interest cost or other income.So it is always better to take consideration of operating growth also
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Dear Pragnesh, You have beautifully described every concept. A few months back, I came to know about watching companies growing at 20-25% sales and profit growth CAGR by SOIC. But I guess, it doesn’t mean that companies that grow at 8-9% in 10 years are bad companies.
Recently, I was checking Kaveri Seed Company and its growth was only 8-9% sales growth CAGR, whereas I thought this company must be growing at 15-20% because as of today, 52-55% of the population is still dependent on agriculture and many industries are interconnected with it.
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Just for our knowledge
As per peter lynch
“20% grower avilable @20 PE is better than 10%grower available @10 PE”
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Can’t agree more than that. Thank you for your wonderful insight. Can you mention this book’s name? Heard a lot about peter lynch and the returns he has generated in his time.
One up on wallstreet
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Thank you. will read the book summary written by you. Fortunate to have you on this forum.
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