Thanks for the comments. I agree, I need to have some more ‘anchor’ stocks to the portfolio. I am giving some more rationale behind these picks. I usually give priority to lower downside risk than higher upside reward. Also, I am not the guy who can pick holes in balance sheets so I’d rather buy stocks that come with an honest promoter. Some of the comments below may seem amateurish but I don’t claim or pretend to be a smart guy at all - all those are already working for MFs One forever remains a student of the markets.
Pharma: I have a feeling that Dishman might get rerated within the next 6 months if the street gets convinced about the turnaround else it’s doing fine just as an earnings based recovery. I might get a opportunity to book long term gains and shift some positions to Jubilant( if they are still not out of the woods by then). CRAMS is a good sector to be in and Divis does not come cheap so I’m putting my money on wannabe Divis.
Granules - it’s a growth stock and might get better valuations if it keeps giving good results and if promoter gets better attention. I guess he would like to pump up the stock before diluting equity for some acquisition to get to the 5k cr revenues. Otherwise, becoming the largest volume player does give you a moat and that gives it some stability.
I am not putting in more money in pharma at this stage because I think people may start moving money out if interest rates start going down.
Roofing: I agree it’s a short term bet with the rural theme doing well and we might get a pop if the results continue to be good or more doles are announced in the budget. The whole pack moves together so it does not usually matter much which one you buy. Although the market leader is Hyd Ind but I would give more premium to the Everest pedigree. I thikn HIL gets negative marks for it’s pedigree. Everest aims to be a complete building solutions company so I might hold that one for longer term. I have Ramco more because i think it will move some even if just their holdings keep going up.
Mayur: I do not intend to touch.
Kaveri : I intend to try to find out why I have it and why it just keeps going up. I hardly read the thread on it and bought it only because the story seemed compelling, so many smart people on this forum were discussing it and Hitesh had highest allocation to it! Now I feel like kicking myself for not buying more/developing conviction earlier.
Logistics: Nothing more to add to Arshiya than what Hemant has already said. It does look risky with all the pledging and debt but I think that is priced in and I took a leap of faith because I felt I would only increase the risk if I try to catch it in an upmove. Gateway is universal analyst favourite but I feel it’s not going anywhere up or down until the economy turns so one will have to be content with the quarterly div payments ( 5% yield) Logistics companies usually have moats and move with the economy so I would prefer these over specific cyclicals. If the froth starts building, retail FDI and GST might give some pop here else rate cuts should help in general.
I think I’ve started buying a lot of my stocks at or near 52wk highs ( dishman 60, granules 110, mayur 500cb, kaveri 860, everest 220 etc) so am looking to buy some stocks which have not moved yet and I dont mind waiting ( eg gdl, arshiya) !
Added a little bit of Bilcare at CMP. Plan to add Maithan alloys when people come knocking on steel companies. Might add HSIL but I think there cannot be any cheap undiscovered stock in the consumption theme left now.