Hi Surya,
Thanks for the nice words. I am a novice with 26 month odd experience in market. I guess my stock picking is more of a luck than skill.
As far as having so many stocks is concerned, I feel this is an never ending debate. I am reading Berkshire Hathway annual letter book (I have reached till 1992), and I see Buffett heavily diversified, not just in equity, but also in debt, sometime even in futures/options. And still he is considered the value investing guru. Personally, I know guys who are well diversified (with way many more stocks than me), and are still doing awesome.
To me, as long as I am finding stocks with understandable business, good management, low debt, 20% ROE/ROCE, good sales/profit growth, available at fair price, has suitable macro advantages, I feel no issue even with holding 40 stocks. The only issue is tracking all of them, nothing more than that.
I dont decide PE of stocks, market decides, so dont have view on what pe a stocks should have. All I decide is what stocks I should buy which all meets my all of the above criteria and seems relatively cheap to me. And, I know companies can have bad patches, that is why I have diversified. And as far as Alembic/Ajanta are concerned, they seems to be having their dream patches these days 
Financial stocks are beyond my understanding. Have no understanding on them, so I usually avoid them, however lucrative they sound. Only one financial stock in my pf now - Repco.
BTW, you dont like Selan. And I have loaded Selan to 15% of my pf. That is market for you. Different opinion makes the market 
Regards,
-Subash
Why so many stocks?
Link: …/…/878769250 http://www.valuepickr.com/forum/portfolio-q-a/878769250 Link: …/…/878769250