As of today, I have sold my stake in NALCO. Although, alumina is nowhere close to its peak prices, aluminum prices have played out very well. My assumptions about NALCO was that by FY25, there will be a cyclical upturn in aluminum prices. When that happens, sales > 12’000 cr. I want to sell at P/sales > 2 i.e. 24’000 cr. (~128 share price). The current price of >90 offers <10% IRR, hence the sell.
Updated portfolio is below. Cash remains high at 25%.
Core compounder (44%)
| Companies | Weightage |
|---|---|
| I T C Ltd. | 8.00% |
| Housing Development Finance Corporation Ltd. | 4.00% |
| NESCO Ltd. | 4.00% |
| Manappuram Finance Ltd. | 4.00% |
| Alembic Pharmaceuticals Ltd. | 4.00% |
| Amara Raja Batteries Ltd. | 4.00% |
| Avanti Feeds Ltd. | 4.00% |
| Eris Lifesciences Ltd. | 4.00% |
| Ajanta Pharmaceuticals Ltd. | 2.00% |
| HDFC Bank Ltd. | 2.00% |
| HDFC Asset Management Company Ltd | 2.00% |
| PI Industries Ltd. | 2.00% |
Cyclical (11%)
| Companies | Weightage |
|---|---|
| Kolte-Patil Developers Ltd. | 4.00% |
| Ashiana Housing Ltd. | 2.00% |
| Ashok Leyland Ltd. | 2.00% |
| SWARAJ ENGINES LTD. | 2.00% |
| Jamna Auto Industries Ltd. | 1.00% |
Slow grower (8%)
| Companies | Weightage |
|---|---|
| Power Grid Corporation of India Ltd. | 4.00% |
| Cochin Shipyard Ltd. | 4.00% |
Turnaround (6%)
| Companies | Weightage |
|---|---|
| CARE Ratings Ltd. | 4.00% |
| Lupin Ltd. | 2.00% |
Deep value (6%)
| Companies | Weightage |
|---|---|
| SJVN Ltd. | 1.00% |
| ATUL AUTO LTD. | 1.00% |
| Jagran Prakashan Ltd. | 1.00% |
| D.B.Corp Ltd. | 1.00% |
| Time Technoplast Ltd. | 1.00% |
| RACL Geartech Ltd | 1.00% |