Subhrajyoti's Portfolio

Thanks for the question. Really had to go back to my records to answer this.

From my current portfolio only HDFC Bank and Titan is there which consisted a bulk of the portfolio (initially)

Apart from these had some PSU/PSU Banks/IT shares (smaller holdings) which I had subsequently sold off.

My COC consisted of Finance/Banking and that is what I had focussed on initially.

Always maintained a highly concentrated portfolio.

List of companies I had owned and have exited consists -

Indusind Bank, CUB, Bandhan Bank, Zydus Wellness, ITC, IOCL, Wipro, Infosys, BHEL, Vijaya Bank, HDFC Life etc.

Interestingly I entered Abbott before Nestle in 2019.

For Abbott - High quality MNC pedigree, High ROCE business, Target market is India and hence avoids the US FDA issues, Prominently features in almost all medicine shops along with Nestle for their Baby food products.

I know that the Baby food products is marketed by the unlisted entity but still gives awesome brand visibility.

Abbott Parent takes the risk of lumpy R&D and shares its successful products to its Indian arm in lieu of royalty which is actually a plus for me.

Absolute dominance in multiple OTC medicine categories in which Abbott works.

I target leaders in consumer focussed High ROCE businesses.

Prefer to stay away from sectors that are prone to technological disruptions.

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That’s nice, how would you rate a P&G health, erstwhile Merc, compared to Abbott or even in isolation - the entire portfolio is OTC vitamins/minerals…a one of its kind play and now under P&G umbrella with P&G marketing and distribution strength and ability?

PGHL also have a blue blooded MNC parentage but will keep Abbott ahead of it. The OTC portfolio of Abbott is superior in my view. Also the Merck merger needs some time to settle in. I had reviewed PGHL but chose to go with Abbott but it still remains in my watchlist.

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Update 31st Mar’21

NAME CMP Inv Price Weight
HDFC BANK LTD 1,494 374 19.10%
KOTAK MAHINDRA BANK 1,755 1,503 16.10%
NESTLE INDIA LTD 17,100 16,730 15.90%
ABBOTT INDIA LTD 14,970 8,496 14.80%
BAJAJ FINANCE LTD 5,139 3,251 11.90%
TITAN COMPANY LTD 1,557 738 9.40%
HONEYWELL AUTOMATION INDIA LTD 47,688 25,071 5.50%
HINDUSTAN UNILEVER LTD 2,420 1,686 2.80%
BRITANNIA INDUSTRIES LTD 3,610 3,117 2.80%
ASIAN PAINTS LTD 2,537 1,761 1.70%

IRR since inception: 27.0%
IRR FYTD : 41.80%
Portfolio Inception: Aug’2010

Last 1 Yr
Exited: CUB, Bandhan Bank
Entered: Nestle India

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PGHL management isn’t talking about expansion plans.
Am unclear about how the growth will continue.

There is a drastic improvement in Cash Cycle. Shows that the management is upto something new, but they haven’t shared any plans.

Nor the Chairman has shared his vison.

I am unable to find growth trajectories of Neurobion, Polybion, Evion or Nasivison either.

I like this business cuz of the MnC parentage, the unique portfolio, potential to have good cash flows and established brands.

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When I chose Abbott India and Nestle, one of the driving forces for my decision (apart from financials/fundamental analysis) was how they heavily focus in “on the shelf” marketing in drug stores.

This they have been doing for a very long time and has contributed in consumers associating them as high trust products.

The drug stores are perceived as more ethical than a normal sales channel though incentives drives sales in all of them.

I find this strategy to be superb as this gives a wide distribution to their products. And though I do not have any stats/figures I reckon it must be one of the best bang for the buck marketing strategy that a company can take.

However slowly I see in house brands in chain drug stores are competing for these shelf spaces.

Till date my thesis on both the counters have played out really well.

Status as on 31st Dec’21 (CMP as on 4th Jan’22)

NAME CMP AVG INV PRICE WEIGHT
HDFC BANK LTD 1528.05 374.47 16%
ABBOTT INDIA LTD 19040 8495.51 15%
NESTLE INDIA LTD 19913 16729.96 15%
TITAN COMPANY LTD 2582 868.75 15%
BAJAJ FINANCE LTD 7359.95 3251.09 14%
KOTAK MAHINDRA BANK 1852.6 1502.63 14%
BRITANNIA INDUSTRIES LTD 3641 3429.62 4%
HONEYWELL AUTOMATION INDIA LTD 42539 25070.69 4%
DEEPAK NITRITE LTD 2510.95 2278.93 2%
ASIAN PAINTS LTD 3454.25 1760.63 2%

IRR since inception: 27.1%
IRR CY2021 : 14.86%
Sensex CY2021: 21.99% (so underperformed Sensex by a significant 7.13%)
Portfolio Inception: Aug’2010

Last 1 Year:
Exited HUL, entered DNL

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