This is my first post in valuepicker even though I was a silent reader of this wonderful forum for the past 4+ years.
Started my investment journey in Dec-2007 (just before GFC). Several learnings till date which is almost similar to other VPeers.
After reading lot of things in this excellent forum, I tried my best to limit my portfolio to 28 stocks from a jungle of 80+ stocks until 4 years back.
Yet to complete building the position in Auto Stocks, once done the weightage will comedown in other stocks.
I’m not a big fan of EV for now as it is going to take long time in India.
IT & Pharma → Exposed via diversified MFs containing exposure to IT sector.
Pharma - Exposed via Pharma MFs.
The stocks in direct equity portfolio contains less or no holdings in MFs.
Kindly request your views/suggestions on my portfolio.
S.No
Stock
Sector
Rationale
Avg. cost
% weight by current value
%ge Gain
1
City Union Bank
Financial
More than century old Private bank with conservative management.
103
17.37%
69.32
2
Power Grid
Energy
- Monopoly. - Irrespective of source of power generation(Thermal, Solar, Nuclear etc.,) we need a medium transmit. - Drawback is PSU owned.
140
16.96%
62.38
3
ITC Limited
FMCG
- No introduction required. Lots of Pros & Cons discussed in ITC thread. - Just a matter of time for re-rating, but of course with opportunity cost.
210
15.87%
-0.39
4
United Breweries
FMCG
Undisputed leader in beer.
912
6.35%
40.29
5
Laurus Labs
Pharma
Betting on Jockey Dr. Chava
435
4.45%
12.36
6
Deepak Nitrite
Chemicals
Betting on Jockey Mr. Deepak
1708
4.11%
3.19
7
WABCO India
Auto
Monopoly in braking systems for commercial vehicles. Long runway ahead… Built position recently during Promoter offloading.
5550
3.68%
21.60
8
Indian Railway Finance Corporation
Financial
Alloted in IPO. Will exit soon…
26
3.41%
-10.19
9
Reliance Industries
Conglomerate
Retail, Telco & Energy Giant
1024
2.98%
95.56
10
Astral Poly Technik
Chemicals
No introduction required.
256
2.87%
583.75
11
Avanti Feeds
FMCG
Leader in the segment
164
2.52%
223.31
12
Mishra Dhatu Nigam
Metals
Niche sector & leader
87
2.48%
130.23
13
Cera Sanitaryware
Construction
No intro required.
1461
1.96%
170.42
14
Alembic Pharmaceuticals
Pharma
- 100+ year old company. - Good scope for growth ahead
604
1.80%
58.32
15
Balkrishna Industries
Auto
Leader in off-highway tyres
410
1.69%
419.36
16
Mahanagar Gas
Energy
- Next decade would be CNG Focussed. - Good financial ratios
628
1.63%
80.12
17
Suprajit Engineering
Auto
Leader in cables space
195
1.53%
39.42
18
Tech Mahindra
IT
- Good management - Neither too small nor too big market cap.
456
1.39%
114.96
19
V-Guard Industries
Consumer Durable
- Good management - Vouch for the quality of the products
65
1.37%
263.09
20
Elgi Equipments
Engineering
- Good management - Leader in compressors
110
1.28%
96.51
21
Kotak Mahindra Bank
Financial
Betting on Jockey Mr. Uday Kotak
762
1.26%
130.76
22
AIA Engineering
Metals
- Indirect play of cement & mining sector. - Leader in high chromium wear, corrosion and abrasion resistant castings used in the cement, mining and thermal power generation industries.
887
0.84%
123.76
23
Jamna Auto
Auto
Leader in tapered Leaf and Parabolic Springs for Commercial Vehicles (CVs)
- Nano cap gamble - Provides - Flue-gas desulfurization (FGD) is a set of technologies used in thermal power plants. - 400+ thermal power plants needs to do have FGD in next years…
20
0.05%
-65.60
28
Yes Bank
Financial
Gamble when SBI & Other private banks took over. Will sell after lockin period is over.
Solid set of companies you have there. I would add more concentrated pharma bets than just mutual fund holdings currently. Also would trim down on auto ancillaries, as the worst is not seem to be over for auto industry yet.
Regarding Auto, yes you are absolutely right. Worst is not over yet. Hence I have allocated less to this sector. Approx. 5% (excluding WABCO where allocation is 3.6% as I got a decent entry price recently)
Regarding pharma, I don’t have the good understanding of the sector. So I have chosen MFs.
At the same time, it does not mean that I have full understanding of the sectors that I’m invested via direct equity.
Majority of stocks in my portfolio is chosen based on broad categories:
Leader / Niche / Monopoly / Duopoly / Oligopoly
Betting on the promoter/Jockey.
To some extent, proven performance in the past across cycles.
Reasonable balance sheet with less or no debt. (of course with exceptions like Powergrid)
Portfolio update: Reduced to 26 companies from 28 earlier.
Exited: Zee: Unexpected twists/turns. Exited with 60% profit. Not bad at all for 70 days holding. AIA, Mahanagar Gas: Very Low weightage in portfolio.
Partial Exit: IRFC: As mentioned earlier, wanted to exit this due to bad business selection. Bias to recover the investment. Does not seem to happen anytime soon.
Used the proceeds from above to TATA POWER and HERO MOTOCORP.
New entry:
TATA power: Integrated player in power space, Leader in rooftop solar, plans to setup EV charging stations acrosss India, bit of gamble based on Electricity Amendment Bill, and TRUST on the management.
Accumulation: HERO MOTOCORP, LAURAUS LABS albeit at higher price than today.
For last few months, wondering why digital/new age companies demand such high valuation.
As per the general narratives, it is factoring future grown albeit these companies burn cash today/not generating profits etc.,
So, I had look at the history of facebook. Back in 2012 when its IPO came I was wondering for PE ratio 1000+.
But then in India, not sure which of the new age companies going to show this kind of growth (Zomato, Nykaa, PayTM, or anything else) is a million $ question
Hey on curious note , my eyes caught one of your script Ducon Infratech
as of now just had overviews, script is improving eventually but want to know about your study behind it.
Highly appreciate your views for it
@Shikhar_Seth To be honest not much study here and it is minuscule in my PF. As mentioned at beginning of this thread, it is just a gamble on flue gas desulphurization (FGD) process for fossil fuel power plants.
