Want to he given feedback/suggestions or even be roasted for my portfolio below - No need to be nice
Will add further details to my Portfolio as time permits
Company % Invested % Gain
IDFC Ltd 66%. 50%
Embassy Reit. 15%. -5%
Mindspace 10%. -7%
Biret Reit. 2.7%. -10%
Avenue Supermarts 1%. -2%
ITC. 2.5%. +14%
United Spirits. 2% -10%
Rationale -
IDFC-
Perfect low risk high potential reward scenario
I get the leveraged returns of IDFC Bank doing well if it does, while my downside is protected by the AMC business.
There is the regulatory hangover but even given that there is a large MOS in this stock still.
If IDFC First does well- then IDFC which will own over 30% of it in most scenarios for the next 2 years will derive a large amount of value from it.
Current valuation Incorporated the bank trading at 10-15 k valuation.
REITs - Highly bullish on Indian Private sector specially Bangalore and Hyderabad office spaces. Indians dont have luxurious homes where WFH can be done for unlimited periods, hence the covid situation is a blip as far as I can see. It’s allowed me to buy them at good prices.
DMART- Long runway for growth where large sums of capital will be invested at decent ROICs. Move to go into E-commerce is forward looking and the management is a great capital allocator.
ITC,United Spirits- Low growth but good free cash generating businesses which given India’s demographics should do decently well and give inflation plus 5% returns.
Next moves- Will increase allocation to DMart and take it up to 10% of portfolio.
Have 6 months of free cash plus 20% of current portfolio in Epf, ELSS.
Hope you have understood their business and in general retail where competition is cutthroat with big players like Reliance, Tatas, Bigbasket and numerous startups.
From my family and friends daily experiences almost every fmcg is procured from one of these competitors thanks to lower prices- a few exceptions as per personal predicate there for which they use Dmart but those are not high ticket/value items. Other than some edibles (poha, tapioca) rest items especially their clothing, accessories range are poor quality and terribly priced.
I wouldn’t be comfortable with a large allocation towards REITs (especially with aim of aggressively growing my wealth). Many friends in IT/related companies moved back to WFH from hometowns in Tier 2-3 cities, so I am personally not too optimistic on REITs for growing my investment.
You might spend some time researching the top tech firms and some niche quality pharma plays for the long term.
Good luck!
Thanks for the reply Sun. I will be diversifying the portfolio going ahead since it is now been almost 3 years since i started my job and i dont want to lose my savings!
Portfolio update -
Stock
Weightage
Gain
IDFC Ltd
6%
14%
IDFC First Bank
2%
7%
HDFC Bank
4%
5%
Kotak
4%
-3%
Embassy
16%
-3%
BIRET
2%
-6%
Mindspace
10%
0%
ITC
2%
14%
United Spirit
1%
-4%
DMART
11%
8%
Cash
2%
0%
Amazon
19%
-5%
UGRO
2%
-3%
Mutual Fund
6%
43%
EPFO
13%
0%
Added Amazon - I believe it is a low risk bet and AWS and Advertisements will grow immensely in the coming years with e commerce being the kicker.
Will reduce the weightage to this by not adding any incremental capital here.
Added HDFC Bank, Kotak as steady compounders- even covid hasn’t shaken these 2 companies which shows their potential.
Will keep financials to less than 20% of my portfolio.
Bit over exposed to REITs which I will correct by not allocating more to them. But this seems like a great opportunity as of now to me and so willing to stay put here. REITs might well beat the NIFTY in the coming decade specially with the high equity prices now at index level.
