After lot of research, I have come up with this portfolio. Please provide any feedback on this.
Stock Sector Weightage
ITC FMCG 4.01%
MCDOWELL FMCG 3.17%
IDFC FIRST BANK BANKS 11.97%
BHARTI AIRTEL TELECOM 5.98%
BIOCON PHARMA 8.98%
SYNGENE PHARMA 8.98%
NATCO PHARMA PHARMA 2.99%
TITAN CON DISC 5.98%
TATA CONSUMER FMCG 5.98%
KOTAK MAHINDRA BANK BANKS 11.97%
DABUR FMCG 5.98%
PIDILITE CHEMICALS 5.98%
PGHH FMCG 5.98%
ABBOTT INDIA PHARMA 5.98%
COLGATE FMCG 5.98%
CONS DISC 5.98
I am into direct investing of late as MF fund managers did a not so great job of giving returns. Large cap gave only 3% over 6 year period. I am also investing through index funds + 2 active funds (15% nifty index + 15% nifty next 50 index, 35% s&p index 17% axis small cap 18% SBI small cap)
Rationale for each of the investments:
- Companies should survive for 20 years atleast
- They should be able to have some level of pricing power and/or growth. Possibly leaders having great market share in segments.
- Some stocks chosen for dividend for some periodic income.
- Debt to equity =0 preferably
- High ROCE type companies in FMCG
- Good capital allocation policies
IDFC First Bank --> Vaidyanathan jockey bet + next HDFC bank + opportunity to grow in large market like India --> dark horse
Kotak Mahindra Bank --> value unlocking in subsidiaries + conservative management + established top tier private bank.
Concentrated to 2 banks one emerging, one established.
Avoided NBFCs completely as most of them don’t survive for a 20 year period. Cipla experience of NBFCs etc… Also borrow long lend short currently. if interest rates were to rise and reach 9%, they may have challenges accessing capital + NPAs. Banks get RBI liquidity window.
Bet on Syngene + Biocon --> future listing of Biocon logistics + Syngene to be next TCS of Pharma. Biocon owns large shares of Syngene.
Bet on Natco Pharma - leadership + product pipeline + different mindset when compared with sun or liupin
Abbott - great innovation engine in Pharma.
Concentrated to 4 names
Colgate - dividend +daily essentials
PGHH- not everything is listed under listed enterprise. But whisper + vicks have a long growth runway. HIGH ROCE + huge untapped market for feminine hygiene products
Dabur - Great naturals focus - Knowing our country with emphasis on ayurvedic/natural , this will do well.
ITC - cigarette (declining business) but FMCG will give it a fillip - dividend focus
McDowell - premiumization pending in india - Diageo is a great company globally. seeing turnaround in key metrics. -alcohol play
Tata consumer - Starbucks + Tea
Titan - great company with great products - can only get better.
Airtel - tough business currently - ARPUs can only rise from here - debt is a major concern. So less allocation. More of a utility.
Ask is to see if you feel any changes to be done+ feedback on Allocation % of sectors . Please do remember that this is a 15- 20 year portfolio. If you believe these companies may not survive, please let me know as well. I cannot be checking portfolio often as well so it should be minimum maintenance.