Reviving an old journey post retirement

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I am in creating a second portfolio of 11-15 stocks for my second child. The time horizon is 10 years, so I am willing to take some aggressive bets.
My first portfolio, which I put together between 2020 and March 2024, is mainly from large gap Nifty stocks and has given decent returns. I have mentioned it in one of my earlier posts.
For the second portfolio, I have shortlisted around 20 stocks, based on my reading, VP insights and a small case subscription which I use mainly for information on new stocks.
I request members to guide me in this new journey.

My stocks for the second pf are

1: Action Construction Equipment (a bet on demand for their equipment as investments in capex grow)
2. Ador Welding (Infra play)
3: Coforge Ltd (Exposure to IT space through a midcap)
4: Cyient Ltd (Like their biz and am hoping that airtaxis will be big in the next decade)
5. CDSL (expect healthy growth for many yrs because of growing demand for stock market investing and also coz of the expected insurance biz)
6. Genus Power (Demand for smart metres)
7. Indigo (Multi year growth in a near monopoly)
8. JSW Energy and Sterling and Wilson Power (Demand for power, will choose either of the two after a year of investing in both)
9. Kamat Hotels (Decent bet in hospitality sector, expect rerating).
10. KPI Tech (Expect it to grow as auto industry evolves further)
11.Max Health (India will need more beds as the country ages, this and NH are my best bets, going with Max for now).
12. Neuland Labs (I expect their biz to grow at a decent pace because a lot of new things are going to happen in the drug development space)
13 Skipper Ltd (Power transmission space is going to grow and they are looking to add capacity plus increase margins, order book is very healthy. Am also investing in Powermech for the same reason.)
14.Tejas Networks (Expensive but promising because of the order book)
15. Ujjivan Small Finance Bank (Good track record and service (have opened account and constantly interact with the staff). Has the potential to grow faster than some of the established banks.
16 Man Infracom (Like their biz model and see them growing without investing much because of their focus on having developer agreements).
Tata Motors (EV and forthcoming plans to give off subsidiary biz)

I plan to have 15 in the portfolio with almost equal allocation of around 6 pc each. Building positions gradually through SIP and Dip.

Tracking positions: Shakti Pumps, Electronic Mart, Ecoreco, Max India, AGI Greenpac and Ethos.

I request members to guide me with their insights and feedback.

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What for? Education? If so, have you got a number in mind, will you sell some of the PF (of that time) and let go of them?

For financial goals, I think the focus should be on the number, the corpus, so if you want to do it the stocks way, make sure you are moving towards that number, and not stuck with analyzing and moving in and out of stocks, because you will lose time, and thereby return. If you have a backup for this, then it is fine.

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There is no goal per se. I want to transfer my real estate investments to stocks so that the kids are able to manage the finances better. Stocks can be managed from anywhere and they are easier to handle. The main purpose is to gift the two portfolios to my children so that they have a backup, just in case…

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I am banking on ujjivan small finance bank because it has a clear path to becoming an all-purpose bank. Q4 results will give us insights into the management mind.

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For ultra long term perspective i would advice against sectoral trends or bets like Smart meters or Solar plays or transformer plays.

It would be far better to go with select mid cap or small cap stocks which are in non cyclical sectors. Energy, Pharma, Niche IT(product oriented rather than service oriented), Hospitality, Finance, Healthcare and even Mining would be better bets. Stock specific of course depends on individual.

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Right. That is why I want to bring it down to around 11 stocks. Some of the cyclicals and trend stocks would go out by the end of this year, or maybe by 2025. My other portfolio has mostly large cap and all weather stocks. Thank you for your advice. Could you suggest from your perspective which of these should be chucked out immediately and which ones can be scaled up. This is still work in progress, I started this one only in March.

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As someone in midst of finding my own feet and changing my perspectives, its a tough task.

One thing i would look at is FCF/ Net Profit Ratio and second would be receivables on balance sheet. What is happening is hope stories are running ahead. Great to trade on 6 month and make money but let’s not fool with them being decadal plays. They will never meaningfully convert revenues to FCF.

Stocks like CDSL/ Cyient/JSW Energy/KPIT/Max Health and even ACE/ Indigo may be suitable for long term, Of course caveat being initial purchase price and long periods of consolidation.

Rest I believe you are someone with far greater operational expertise if not financial expertise than me so not really my place to judge.

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