Adding a PF update after ~2 months:
| Instrument | Avg. cost | LTP | Net chg. | % Allocation | % of PF | Type |
|---|---|---|---|---|---|---|
| IDFCFIRSTB | 25.71 | 37.25 | 44.87 | 0.096 | 0.109 | Core |
| ASTEC | 1033.77 | 1267.75 | 22.63 | 0.087 | 0.084 | Core |
| RACLGEAR | 86.55 | 145.6 | 68.22 | 0.062 | 0.082 | Core |
| CHEMCRUX | 181.5 | 245 | 34.99 | 0.075 | 0.08 | Core |
| NEULANDLAB | 1110.08 | 1144.15 | 3.07 | 0.091 | 0.074 | Core |
| VAIBHAVGBL | 1938.48 | 2294.6 | 18.37 | 0.069 | 0.064 | Core |
| NCC | 29.1 | 59.7 | 105.13 | 0.036 | 0.059 | Core |
| POLYMED | 385.04 | 525 | 36.35 | 0.05 | 0.054 | Core |
| LAURUSLABS | 277.4 | 349.3 | 25.92 | 0.052 | 0.051 | Core |
| AXTEL | 228.21 | 225 | -1.41 | 0.064 | 0.05 | Core |
| APOLLOTRI | 734.55 | 852.5 | 16.06 | 0.045 | 0.041 | Core |
| SEQUENT | 154.07 | 171.35 | 11.21 | 0.041 | 0.036 | Core |
| MASFIN | 834.6 | 939.95 | 12.62 | 0.034 | 0.03 | Core |
| SANDUMA | 676.59 | 1060 | 56.67 | 0.019 | 0.024 | Core |
| ITC | 178.04 | 212.3 | 19.25 | 0.033 | 0.031 | Dividend |
| GOLDBEES | 44.62 | 43.64 | -2.19 | 0.037 | 0.028 | Hedge |
| NATIONALUM | 33.08 | 42.3 | 27.86 | 0.016 | 0.016 | Dividend |
| NMDC | 84.64 | 116.3 | 37.4 | 0.014 | 0.015 | Dividend |
| HEIDELBERG | 187.88 | 219.05 | 16.59 | 0.014 | 0.012 | Dividend |
| POWERGRID | 164.18 | 190.45 | 16 | 0.013 | 0.012 | Dividend |
| RITES | 256.64 | 268.5 | 4.62 | 0.011 | 0.009 | Dividend |
| BAJAJ-AUTO | 2948.76 | 3432.1 | 16.39 | 0.009 | 0.009 | Dividend |
| AGIIL | 56.01 | 60.9 | 8.73 | 0.009 | 0.008 | Exploratory |
| TITANBIO | 127.45 | 147.15 | 15.46 | 0.007 | 0.007 | Exploratory |
| NEOGEN | 733.95 | 745 | 1.51 | 0.003 | 0.002 | Exploratory |
Total realized+unrealized profits (only for Core PF): 40%
Note that my capital deployed has gone up 4x compared to 1 year ago, so a lot of it has been deployed in the 2nd half of the year. I will only measure the total returns on capital deployed not the CAGR because it is too cumbersome to maintain a log of each and every buy/sell/capital deployment. I do hope that zerodha provides a CAGR facility soon.
Some Updates on the diffs:
- I’ve sold Alembic Pharma and replaced it with Sequent scientific + additional buying in Laurus Labs. In general, as per my earlier post, I’m always on the lookout for replacing PF companies with better quality companies and this is a step in that direction. Sequent is play on animal pharma and has characteristics of FMCG in terms of industry structure, level of consolidation, pricing of the end products and certainty of earnings. Recent promoter change to Carlyl will help Sequent move to the next orbit of growth, helping them enter China, US and companion animals. All significant opportunities. EBITDA margins are improving by 1.5-2% every year.
- KEI has been replaced with Apollo tricoat. Tricoat has a much better value addition proposition (including exclusive use of DFT and ILG technologies to create superior products) and with their Rs 2,000 chaukhats replacing Rs 6,000 and worse wooden chaukhats, this company in the structural steel section is expecting to grow at 30-50% in the next 3-4 years at least. I estimate their market share to be < 1% and hence they have a long growth runway in front of them.
- I found RACL to be quite under-valued and hence added a bunch there.
- RACL and NCC have moved to higher % of PF due to large price appreciation.
- Added Axtel industries. They make machines for FMCG companies to make their products. They are able to deliver European standard quality at Indian price (aided by better manufacturing and labor costs). Backed by a technocrat promoter and several years of long lasting client relationships, I consider the probability for complete loss of capital to be low. They are a primary supplier to all large FMCG companies (inside and outside india), and have barely scratched the surface in terms of the market share.
- Sold GAEL. In general I’ve come to observe that I like owning companies with small but growing market shares backed by some competitive advantages. GAEL does not fit the pattern, already holding 40% market share.
- Sold Sirca paints. The company has a lot of potential but are already a large player in their primary market. The wall paints play is more of a hope rather than a certainty IMO. I have studied Indigo paints well and intend to add it when it IPOs, unless the price is ridiculously high.
- Sold Rain industries. Bought Sandur manganese. It’s a very well run company which was very under-priced, not very levered and a purer play on commodity cycle turn around than RAIN.
- Given the ridiculous prices at which ITC was, I have increased that position after studying it a bit more.
- New companies that I intend to study are Neogen and Navin Fluorine. At some point, it can become difficult to ascertain between a company that I expect compound earnings at 25% and one where the compounding might be 30%. For this reason, unless there is a compelling reason to switch, I would like to stick to current companies and also maintain only 15-16 non-commodity core PF companies at most.
Disc: This is not a buy or sell recommendation. I am not a sebi registered advisor. Please consult your own advisor before investing.