Here is the portfolio update for April 2022.
| Sr. No | Company | Sector | Capitalisation | Alloc % | Rationale |
|---|---|---|---|---|---|
| 1 | BSE Limited (XNSE:BSE) | Financial | Small Cap | 15% | Financialization theme |
| 2 | HDFC ASSET MANAGEMENT COMPANY LIMITED (XNSE:HDFCAMC) | Financial | Mid Cap | 12% | Financialization theme |
| 3 | AVENUE SUPERMARTS LIMITED (XNSE:DMART) | Services | Large Cap | 8% | Long-term retail play, debt free |
| 4 | HCL TECHNOLOGIES LIMITED (XNSE:HCLTECH) | Technology | Large Cap | 8% | Coffee Can |
| 5 | LAURUS LABS LIMITED (XNSE:LAURUSLABS) | Healthcare | Mid Cap | 8% | Growth |
| 6 | DR. LAL PATHLABS Limited (XNSE:LALPATHLAB) | Healthcare | Mid Cap | 7% | Coffee Can |
| 7 | DEEPAK NITRITE LIMITED (XNSE:DEEPAKNTR) | Chemicals | Mid Cap | 7% | Growth |
| 8 | OLECTRA GREENTECH LIMITED (XNSE:OLECTRA) | Automobile | Small Cap | 5% | EV theme |
| 9 | ABBOTT INDIA LIMITED (XNSE:ABBOTINDIA) | Healthcare | Mid Cap | 5% | Coffee Can |
| 10 | ASTRAL LIMITED (XNSE:ASTRAL) | Chemicals | Mid Cap | 5% | Coffee Can |
| 11 | TITAN COMPANY LIMITED (XNSE:TITAN) | Cons Durable | Large Cap | 4% | Long-term retail play, debt free |
| 12 | PSP PROJECTS LIMITED (XNSE:PSPPROJECT) | Construction | Small Cap | 4% | Asset Light business in construction |
| 13 | GATEWAY DISTRIPARKS LTD. (XNSE:GDL) | Services | Small Cap | 4% | Promising sector for future |
| 14 | Fsn E-Commerce Ventures Ltd (XNSE:NYKAA) | Services | Large Cap | 3% | Growth |
| 15 | INDIAN ENERGY EXCHANGE LIMITED (XNSE:IEX) | Services | Mid Cap | 2% | Growth |
| 16 | HDFC BANK LIMITED (XNSE:HDFCBANK) | Financial | Large Cap | 2% | Coffee Can |
| Stocks | |
|---|---|
| Top 5 | 51% |
| Top 10 | 80% |
| Top 15 | 98% |
| Market Cap | |
|---|---|
| Large Cap | 25% |
| Mid Cap | 46% |
| Small Cap | 29% |
| Sector Split | |
|---|---|
| Financial | 29% |
| Healthcare | 21% |
| Services | 17% |
| Chemicals | 12% |
| Technology | 8% |
| Automobile | 5% |
| Cons Durable | 4% |
| Construction | 4% |
| Defensive | 28% |
|---|---|
| New Age/Theme | 9% |
Investing Objectives –
Return of Capital - 
Beat BSE Sensex in terms of CAGR
Beat FD returns
Reach 15% CAGR
Beat MF(direct) returns (23% Vs 21% CAGR) 
Changes -
- No changes to PF
Notes -
-
Finished reading “One Up on Wall Street” by Peter Lynch. May be I will read this again in future.
-
The bull market really helped me in accepting stocks/MFs as dominant asset class . The market may go down but at least I know that there will be crests and troughs and proper preparation can give me 15+% CAGR in long term. In the book, Peter Lynch mentioned there are some generation of people(1960s) who could not look at stock market as a good asset class even though they were in higher designations like CEOs due to their family reminding about horrors of losing money in stocks. He also explained 1929-32 great depression happened because US economy was 66% in Manufacturing, 22% in Farming and only 12% in Service sector and there was no mention of pensions, medicare, unemployment benefits etc. There can be regular corrections but repeat of 1929-32 great depression may not be possible. In 1987 October when market corrected, 70% of US economy is coming from service sector and manufacturing was reduced to 27% and farming to 3%.
My PF stocks in Lynch Parlance
Stalwarts - HDFC AMC, HCL Technologies, Abbott India, Titan, HDFC Bank, Avenue Supermarts
Fast Growers - Laurus Labs, Olectra Greentech, Dr Lalpath labs, PSP Projects, Nykaa, IEX, Astral
Cyclicals - Deepak Nitrite
Turnarounds - Gateway Distriparks
Asset Plays - BSE Limited
Stalwarts give the portfolio the much needed stability. The usual quality displayed by these is giving dividends even in recession times. The growth may not be aggressive here but there is more safety of return of our capital. I miss TCS & HDFC in this list. Having been in IT and have first hand information on how TCS was leader in services in Europe and relatively low paymaster , this should have been in portfolio as it rightly fits in my circle of competence. The ship has sailed and HCL Tech is the lone tech company now.
The fast growers are the ones which can turn into potential multibaggers. As long as the growth rates are standing up, they are on track but can punish the PF in case of lesser growth rate
Cyclicals are better to be not touched without proper knowledge. Having got the confirmation that China+1 is happening on the ground, Deepak Nitrite is chosen. However, the tide may turn down anytime. I have a tracking position in Vinati Organics but did not add further as it increases the risk
Turnarounds are very rare. Lynch has mentioned about Chrysler about his one of the successfull turnaround stocks. Gateway Distriparks is going through restructuring and increasing its marketshare in rail segment which is also reported in last quarter earnings. It gives a decent dividend and significant insider buying was also seen in last few years especially by Mr. Sachin Bhanusali(~0.9%) who is the CEO of their Gateway Rail division. This can be that boring and not exciting stock which Lynch mentioned in the book…I have tracking position in Yes bank
Asset plays are about having some hidden asset/cash which are not reflected in the books or not discovered by market. I bought BSE Limited when it is selling below its book value and its hidden assets are BSE Star MF and India INX, BSE Building or BSE platform itself. 20% stake in CDSL makes it more solid to hold on. Zerodha holdings has 3.71% in BSE Limited as their treasury operation. The hidden asset value will come out soon… BSE Limited is my biggest winner so far
Interesting Videos -
The CEO of Vinati Organics talks about her journey in the company and also about the times of exuberance for speciality chemicals business.
This is not related to investing as such but in general about building a life…