Roughly two weeks have passes since my last update. Have made following changes to my PF
Sold: Fino Payments Bank, Ujjivan Financial Services, SJS enterprises
Bought: MCX, PDSL
This is how my PF looks at the moment
| Instrument | Avg. cost | LTP | Current % | Net chg. |
|---|---|---|---|---|
| KRSNAA | 419 | 652.7 | 8.1% | 55.66 |
| PITTIENG | 299 | 616 | 7.6% | 105.88 |
| ANGELONE | 1474 | 1893.55 | 7.2% | 28.42 |
| REDTAPE | 149 | 446.85 | 6.9% | 199.06 |
| XPROINDIA | 635 | 993.55 | 6.8% | 56.39 |
| KERNEX-BE | 274 | 466.7 | 6.3% | 70.3 |
| MTARTECH | 1785 | 2602.45 | 5.8% | 45.79 |
| CIGNITITEC | 802 | 810.15 | 4.8% | 1 |
| KAMAHOLD | 14305 | 15601.65 | 4.6% | 9.07 |
| NIITMTS | 228 | 434 | 4.5% | 90.6 |
| MANAPPURAM | 131 | 141.7 | 4.4% | 7.85 |
| CONFIPET | 88 | 89.9 | 4.2% | 2.49 |
| PDSL | 372 | 448.65 | 3.7% | 20.48 |
| EQUITASBNK | 64 | 85.65 | 3.5% | 33.24 |
| DODLA | 536 | 698.9 | 3.3% | 30.38 |
| MOLDTEK | 353 | 340.45 | 2.8% | -3.42 |
| MCX | 1819 | 1780.05 | 2.7% | -2.15 |
| IGPL | 507 | 533.6 | 2.6% | 5.32 |
| SANGHVIMOV | 627 | 706.4 | 2.3% | 12.7 |
| VENUSPIPES | 1184 | 1538.5 | 2.0% | 29.98 |
| ULTRAMAR | 364 | 407.75 | 1.9% | 12.05 |
| SHBCLQ | 572 | 547 | 1.9% | -4.3 |
| SHARDACROP | 420 | 440.25 | 1.2% | 4.88 |
| DEEPAKFERT | 600 | 637.3 | 1.0% | 6.2 |
| WIPRO | 404 | 441.1 | 0.1% | 9.18 |
In addition to above changes, I’ve some qty in existing PF including but not limited to PDSL, Kernex, REDTAPE, XPRO INDIA, Moldtek Tech, Shivalik Bimetal Control, Manappuram, Kamaholding, Ultramarine Pigments
Sold FIno, Ujjivan and SJS as I see better opportunities in the PF and newly added stocks
Bouhgt PDSL: PDSL is one of it’s kind business model. It’s kind of a platform that connects Garment Brands and Retailers to Manufacturers. The collects some percentage of the mecrchandise value as commision which acts as Revenue of the co (Gross margin in the financial statements). The Co. is winning new businesses and scaling up the existing ones. Read post on VP here
Co targets to 18-20k cr sales by FY27 and 5-5.5% Net profit margin. Co, is clocking ROCE of ~40% which will only improve going forward with developed market economy comes out of inflationary pressures. So, expect the co. to maintain same or higher ROCE. Market could be 20-35k cr by FY27 (may be FY28-29, if delay in executions) and offers very good return
MCX: Currently earnings are depressed as the co. is paying abnormally high software charges to 63Moons. With own software expected to deployed soon, the profits of the co may earn ~350cr net profit in FY25. I assign a 35x PE multiple to the co, as it’s growing at more than 25% in FY23-FY25 and a platform business that generates good cash. Expect ~20% cagr returns by FY25 end
Few more things I plan to do:
As I don’t have any Large cap in the PF and Valuations in the small and mid cap are in frothy territory, Plan to allocate some of the PF to HDFC bank, as it’ll give 17-20% kind of returns (even without valuation rerating to historical means) and provides stability to the PF if small/mid caps correct. However I need to sell some of the existing cos in the PF to do this
Other co.s that I’m considering that would limit the downside are Gujarat Fluorochem, Kama Holding
I’m considering HDFC bank as it’s a co that has shown consistent growth and the chances of valuation derating are limited. I’m open to members of VP suggeting other cos that would add cushion to the PF in turbulence
Thanks for reading this post
Views and Opinions welcome