SA's Portfolio - Feedback appreciated!

Q&A: Questions & Answers Portfolio Q&A
1

Hello All,

I am novice in investing. To be honest, I must give appreciation to torch bearers here on valuepickr and other popular bloggers who have helped me with ideas. Though I like to research on my own, still I think that's very crude and hoping to refine with time and labor.

I would appreciate honest feedback, suggestion etc..pls keep them pouring on what's your mind, without hesitations..Thx in advance!

Company
 Overall Gain%
 % of Portfolio
 Comments
Hawkins 80% 14% Long term buy
Cera 412% 14% Long term buy
Kajaria 54% 12.5% Long term buy
CanFin 22% 9.2% Short Term
Looking to exit
ManjuShree 256% 8.8%
Looking to exit
Unichem 21% 8.2%
Looking to exit
eClerx 103%
8% Long term buy Lookig to add
Piramal 38% 8%
Long term buy Lookig to add
Bliss GVS
 41%
4.2%
Short Term Looking to exit
Bajaj Auto
 21% 3.8%
Medium
Looking to exit
Fres Kabi
 10.4%
 1.6% Exit

Apart from this, I have MF's which are 50% of my current equity portfolio. I also have real estate in my home city. I want to increase my equity portfolio as well, to deploy surplus cash. I have other loss making stocks which less than 2% stocks - quite few of which are in deep red - learning price paid to market..I am goig to sell those, so not listed above.

Few of the Possibilities:

1) valuepick favs - PI/Shilpa etc.

2) Add substantially to Piramal. to increase holding to 12%.

3) Add to existing stocks.

I give high weightage to management, and that is one of most important criteria for me. Also, I cant afford to spend lot of time, so companies which are quite long term, with good management is which I am looking. (I am sure others are too as well)..

Appreciate your feedback and advise

Thanks in advance!

SA

2

Saurabh,

Welcome to Valuepickr.

Cera + Kajaria allocation is high. Try to reduce that. Canfin is a med term hold. You can exit Manjushree. Add Shilpa, PI Ind. Convert Unichem into Ajanta Pharma. You can exit Piramal as it is not going to give significant returns instead go for HDFC Bank/Indusind Bank for providing stability to the portfolio.Overall your portfolio is good.

3

Good portfolio Saurabh.

One question - Your gain in cera 400+% and current holding 14%… sold some holding in between or initial allocation was low. AstralPoly has become 20% of my portfolio due to similar multifold returns so thinking whether I should derisk by reducing!

I agree with Manish’s comment - Cera + Kajaria being from same sector can have adverse impact in case the much awaited real-estate bubble(If I dare say!) bursts!

4

Hi Manish

Thanks for the feedback and for your time. I will definitely reduce Cera/Kajaria holdings and add PI/Shilpa/Ajanta. As you advised, need to add good solid banking stock as sell. Still need to do my research and make up on my mind as well. I know HDFC is good solid compounder but need to analyse HDFC vs IndusInd or other bank. Any views are always welcome.

Regarding Piramal - I am betting on AP and so far I liked his acquisitions. I think this will be slow return giver but returns will come- may be it will lag for few years even. But I think I can use to build large position slowly and i can peacefully sleep that I will not be short changed by AP. May be it will be like mutual fund for me. Do you foresee risks or downsides to this? I see oppurtuity cost but looking for other risks as you see. Also, your are getting piramal 70 cents to dollar.

Hi Sarang

Cera was added long back in 3rd qtr 2010 with low initial capital. Return are obviously overall returns listed above. You see, still learning that one needs to have subtantial % to make difference in overall portfolio and dont sell soon your winners.

5

@Saurabh :

Yes it is better not to get concentrated to one sector. For adding PI/Shilpa/Ajanta, please go through the respective threads on valuepickr and build your conviction & entry levels before buying. HDFC Bank is a solid compounder while indusind bank is going through the growth spurt and hence better returns but with higher risk. Recent downtrend in the economy may not help financials to a great extent in the shorter term but over the long term it will give decent returns.

Regarding Piramal, it will be like investing in mutual fund. If you can put effort in researching stocks, you will definitely get better returns than that.

@Sarang :

If your portfolio does not have other stocks from real estate, then you can reduce. Otherwise Astral is a fantastic company to own.