Sudheer_Pal Portfolio: Review, Discuss and Learn

Hi All,

A quick intro: I am a software engineer working for world’s leading fin-tech company. I am learning and investing in stock market from last 3-4 years, started as a mutual-fund investor and now i am in purely stock investment as we have better control here. Due to my work and busy schedule i want a portfolio which don’t need much manual interference, a typical coffee can type. However i quarterly review it.

I am only betting on certain sector/theme which i think could be future proof. I believe in concentrated investment.


Rational for each stock-
BAJFINANCE - A fintech company which understand retail capital demand for unbanked.

NESTLEIND - Coffee can FMCG play, innovative and market leader products.

SBICARD - consumer spending theme (high growth and SBI backing), only listed player.

HDFCAMC - financialization theme and they are most profitable in that.

LTTS - An upcoming industry what IT was in last decade.

ABBOTINDIA - A domastic pharma play (similar to fmcg). No USFDA issues. :slightly_smiling_face:

DMART - A retail shift from unorganised to organised.

INDIAMART - Internet company in B2B domain also a market leader.

HDFCBANK - A banks which knows how to manage risk. Fee income is cherry on the cake.

PIDILITIND - Monopoly in adhesive and also they are entering in new segment (some strategic investment like pepperfry)

LALPATHLAB - Healthcare is a necessity and they are playing well with technology.

ASIANPAINT - A well run professional company, entering in new segment while maintaining their position in their core segment.

I would request members to give me their advice/suggestion for the portfolio shared above.


I like all your picks as coffee can picks except two major allocations - Bajaj finance and sbi cards. Whatever said, Bajaj finance is after all an NBFC while sbi card operates in a highly disruptive space. My views maybe biased as I have a strong bias against NBFCs for coffee can investing.
In technology I see you have picked LTTS and mention that this sector is what IT was in last decade…however behind the outer layer of goodness, the actual business of LTTS is exactly like a IT company except that it’s hugely concentrated in engineering vertical (which instead makes them riskier and dependent on just one vertical). To read what that vertical is, R&D, patents is very catchy but the real work done and what contributes to revenues is all if not low end but of same league as a normal IT company. Above is proven by fact that all top notch pure IT plays like LTI, Mphasis, TCS have fared better than these so called R&D engineering Indian companies like LTTS, even Tata elxsi and cyient in long term. Except maybe a honeywell automation which might be doing some real engineering high end work contributing to it’s revenues. Pls correct me if wrong. Would be great to know your thoughts. Thanks

Thanks for reviewing and giving your comments.

Here is my reasoning.

Bajaj Finance

Initially at the time of allocation (around 800 levels) weightage in bajaj was quiet less. Comparatively to portfolio it run well, which increased the weightage. Also in recent month (around1900-2000 levels) i was able to increase my holding by 1/3rd of existing.

NBFC is a leverage play and any leverage play has its own risk. Thus all banks (less risk because of rbi regulations) and nbfc has their own risk.

Bajaj seems to be one of the better placed while managing risk. They are well diversified, uses technologies in best way, cross sell with in their own customers. To avoid further risk, they are now distributing loan to 70% of their existing customer (very less npa for these customers or no npa). Also this reduces customer acquisition cost also.

Consumer lending is one the growing sector (at least for next 2 decade), which i cant ignore. :smile:

Being in fin-tech sector, i have a bit understanding of fintech industry and bajaj seems to be a best play among that (atleast for me). Also my margin of safety is quiet good and i can hold it comfortably.

Seems i have talked too much in favour of bajaj. I think only being nfbc is the risk against bajaj and superb management is doing their job perfectly.

This is very newly listed company, so dont have a much to talk about it. But these are factor which make be to invest in it.
Credit Card penetration is least penetrated in India when compared to developed countries. So huge market is waiting for it. Today its only 700-750+ above CIBIL scores are allowed to opt for credit card. But might be in future the eligibility is eased and new set of customers will be available. Also personal loans are less risky in nature.

Since it is backed by SBI bank so bursting out is very unlikely to happen. And pandemic (like covid) is helping big companies to grow more as smaller competitors are leaving market.

Cost of distribution and working capital will be decreasing as nature of business will be digital completely. Also i can see lots of co-branding and some special cards like 7% cash back when used with ola. This shows that they are tracking the market and comping up with solutions to cope up with and to remain in main stream.

Here my buying average price is around 550 levels. so again some margin of safety. Also i might exit this SBI card if things are not happening as per expectations and might increase stake in bajaj or hdfc bank or some new stock in future.

I think LTTS has many verticals (Healthcare, Telecom, Industrial, Plant Engineering, Media/OTT) and well diversified company and in future companies don’t want to setup their own RND system/Campus and may be using on a cost basis and its cost effective.
Recent news where LTTS is helping Microsoft to transform their campus to smart campus--

I think many more such deals are likely to happen, where LTTS might help companies in term of campus, R&D Labs, Plant engineering, etc.

L&T as parent group would be helping to achieve this. Also this industry is less competitive when compared with traditional IT companies.

Traditional IT i am not interested as i am waiting for product bases (or SaaS based ) companies (Fresh Desk, ZOHO, etc) to get listed.


Profit booked in DMART.
Need to wait for the quarter result. Want to see the margins and pressure from ecommerce players.

Taking benefit of todays fall.
Added some of lal pathlabs.
Moved from hdfc bank to hdfc life.
Added more nestle (actually parked excess cash)

Most of them are key names… one suggestion is keep at-least 4 or 5% minimum allocation to any stock so nothing will be diluted.