New member here and also just getting started with investing. Was waiting for a downturn for a while and was mostly invested in debt till now. Slowly converting the debt to equity positions. Also considering levering up a bit eventually if the situations gets really bad.
I look at the intrinsic value of all companies with 3 formulas ; Grahams formula which uses EPS, buffets formula that uses book value/book value growth and then DCF method.
If all 3 look great, I start buying. I do look for low PE ratios, less than 1 PB ration, low debt, good management, earnings growth over the last 5 years and good ROE
Here is my portfolio
Have been slowly buying Sterlite Technologies and Take solutions.
Sterlite : Optical fibre is going to be a mainstay over the new few decades as data consumptions increases. Being one of the few pure full stack solutions for networking, it seems like a steal at current prices. Especially as they are also focused on IP and promoter has given up pledged shares. Debt is a bit high but they have been decreasing it quite a bit and ROE is very high.
Take Solutions : Have been growing order book really quickly. MD seems very smart and also very synergistic acquisitions. They are one of the few CRO’s from India and I feel as lifesciences expands and more of the work is outsourced Take can be a huge beneficiary. Started building a position last week but will continue over the next few weeks.
Considering - need to review management and business but the numbers look great for the below list :
- Elnet technologies
- Gujarat Industries Power Limited
Was considering Graphite India, seems like a steal but then seems like China is dumping Graphite in markets so that could affect demand and thats already been reflected in 2020 results
Would love suggestions and criticism if you guys think there are huge red flags in my portfolio