Sood's portfolio

Posting my portfolio for critique from fellow boarders


Dishman: 16%

Granules : 12%


Everest: 12%

Ramco: 5%

Visaka : 3%

Valuepickr favs:

Mayur: 15%

Kaveri : 7%


Gateway: 9%

Arshiya: 8%

Others + mostly cash: 10-15%

Watchlist : Bilcare, Maithan etc

The portfolio does not have too many of the usual valuepickr favs - that’s because I started looking into individual stockpicking (after several years) in 2012 and value pickr in jun- after I was fed up of the MFs/ SIPs I was trying out for a few years. I do not have the guts to get into the relaxos / prestiges / hot consumption stories trading at 20, 30 price multiples or the me-too cookware/tile companies because IMHO this theme is past the fizz you get on opening the bottle :wink: - I feel one bad quarter can be very disastrous for health and there’s some promising stuff available at low single digit multiples whose time will come soon.

I do think I may have too much of logistics too early- it’s more a bet on generic cyclicals which will move with the economy because I do not know enough to find the let’s say best sugar or iron ore or steel company. There are enough promising looking candidates available at reasonable p/e though- maithan, sarda mines, godawari power, graphite india etc.

I have been trying to do a lot of reading so I get to know the ‘proper’ way of making money in the markets so I’m open to advice from everyone :wink:

Nice concentrated portfolio. Cements/Asbestos stocks have been recommended by Hitesh bhai long back, and it is nice to see you are loaded 20% of your portfolio with it. Cyclical stocks were never have been my cup of tea, so I stayed away from them. But by looking at how bullish Hemant bhai is on Arshiya, I guess it must be an excellent stock to latch on.

arshiya is a good long term pick if someone can wait for 3-5 years. i personally believe technically the downside is limited to 8-10% from current levels even in case of bad market conditions. the loss here is more of oppurtunity costs. i believe there are two major triggers for it:

1). mgmt is able to fund the next ftwz(nagpur) through internal accruals and no extra debt.

2). stabilisation in overall debt levels and Net profits starting to outpace ebitda growth through either debt repayments or growth in interest payment stabilises.

3). ground level implementation of FDI in retail or GST.

technically the stock is stuck between 110-165 range. any breakout from this range with good volumes could lead to a significant upmove. once one of the above trigger conditions are met, i would load up on arshiya from current levels to 20% of my portfolio. Debt levels and VOS ratios in FTWZ business are the key monitorables here.

nice portfolio of stocks.

But according to me most of except mayur and kaveri , these are marginal players. so unless you are betting for short to medium term you need to get some solid stocks in the portfolio.

For me visaka and ramco are trading bets for the short to medium term period --2-6 months and then decide depending on results they churn out.

Try to look out for companies with dominance (not always the number 1 in the sector) in a particular sector and especially if the sector has favorable tailwinds.

Among cyclicals I had a look at godawari power and it seems to be doing the right things and might give good returns.

Hi Sood,

Good to see you also holding and tracking GDL.

I am also tracking and holding stock since long time…But it moving range bound quite long what could be the trigger you expecting to break 150 level??

I appreciate if you share the investment rational ? Is it just retail FDI bet or any other reason for your pick??

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 :wink: 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.

Are there any chances of the glass division being demerged in next year or so? .If ihappens then we shall have a multibagger in HSIL?


Does not look like that’s happening - as of today’s news

The news is dated 19th Dec,2003. Hopefully management takes a prudent decision andgoes for the demerger. This will be a long term decision and shall improve operational efficiency and improve marginsfor the CERA sectionsignificantly


oops :wink: I did not look that close . I do not follow the demerger story