Stock SIP...comments and feedback welcome

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

Hello everyone…

I am 36 years old and i have been an investor in mutual funds for about 4 years now…

When it comes to investing directly in stocks…i started investing in august,2019 and thanks to valueable inputs from the forums here…my returns from equity portfolio have been very decent.

I have now decided to start a basket of stocks/Stock Sip…with an equal amount of investment in 5-8 stocks on a fixed date every month for 5-7 years…with a target of compounding consistent returns for the next 15 years…

The stocks i have finalised are :-

  1. alkyl amines
  2. bajaj finance
  3. gland pharma
  4. borosil renewables
  5. hdfc life insurance
  6. laurus labs

the stocks that i have shortlisted further are :—

  1. lal path labs
  2. jubilant foodworks
  3. navin fluorine
  4. pidilite

The investment criteria is very simple.I have considered only 3 basic point…

a) Good reputation/Past record of management
b) Moat business or exclusivity enjoyed by the business in comparison to its peers or a monopoly business
c) significant scope of growth/expansion and good scalability

Other than the 3 factors stated above…i know a bit of technical analysis and choose stocks only which are in long term uptrend…so,my investment is a mix of fundamentals + technicals…

Comments,feedback and valuable inputs from members will be highly appreciated🙏🏻

Thanks

Hasmit Chugh

2

Comments and feedback from community members and seniors will be highly appreciated…

3

You may want to give your investment thesis on these stocks in a structured format to get useful input. For example, Why do you think they have a moat? How did you come to the conclusion they have a good management? Etc etc

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4

Look twice at the valuation, I see it has run up too much, given the fact that management had decided to not go aggressively on expansion & that right now they are not the price setters although being the sole Indian players, this does limit the EPS & hence the exponential rise in PE isn’t supported.

5

Borosil renew has lots of operator being active there.
What you are trying here is Passive SIP in stocks.
Your 80 percent shortlisted stocks are not the right candidate for SIP on stocks.
Would advice to do SIP on proven companies for at least 10 years .
Else this list is risky for SIP in long run

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6

SIP in stocks are not such a good idea for 4 reasons :

  1. Stock Selection
  2. Timing
  3. Circumstances of the company
  4. Concentration in portfolio.

Here’s an article that explains this : https://primeinvestor.in/sips-in-stocks-should-you-go-for-it/

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