Hi Subhash,
The stocks you are holding are good stocks. All the stocks except Shilpa, Selan, NIIT, Hinduja I like other stocks. Your stock picking is good. But I did not understand Why so many stocks? Alembic and Ajantha are good stock but I think Pharma stocks and IT stocks are moving up because of current headwinds. But I personally feel Ajantha and Alembic are not the stocks which should get 25 PE’s. The Problem here is in Pharma these stocks are not market leaders and don’t know how they behave in bad phases. Obviously I am not comfortable in owning stocks that are not market leaders.
And one more thing:
take a bank like ING VYSYA where the margins getting moved to 4 -4.5 will re-rate the stock to 25 PE. Things like NPA, NIM, CASA determine the overall PE. 4- 4.5 margins and 40% CASA will put ING in the range of HDFC and Kotak.
But what can bring Pharma stocks higher PE’s. The only answer I found is long operating history of growth. The point I am making here is what parameters make a pharma stock a top class stock and place it among the leaders. Because many pharma stocks are yet to come. Chronic Theraphy Area is a high growth area. In the near future there is still a lot for high growth pharma areas and domestic pharma.
Anyway if you would to comment on my strategy you can comment on my portfolio at
http://www.valuepickr.com/forum/portfolio-q-a/878769250 Link: …/…/878769250
We can have a nice flexible open minded discussion.
Thanks,
Surya.
Weightage | 2 | TCS | 1
Mindtree | 1