Utkarsh Patel Portfolio

Currently my portfolio has only 4 stocks

My current Portfolio is as follows

Stocks Weightage (%) Current Gain(%)

Ajanta Pharma 50.11 185.3

J&K Bank 39.06 8.4

City Union Bk 8.96 41.6

Wim Plast 1.88 0.2

I know I am highly concentrated in Ajanta Pharma, this is due to the gains I have made in the scrip. My initial weightage was less than 30% to the same. Also, I am highly concentrated in banking stocks as portfolio weightage shows. I like to be in good business at the cost of diversification. I would like fellow seniors to suggest some useful additions/advice for the same.

Exited Wim Plast, no change of view on fundamentals, trying to get rid of low conviction story and employ capital in other good conviction stocks with considerable weightage.

Updating the current portfolio below:

Holding Percentage Current
Stocks Weightage Gain (%)
Ajanta Pharma 58.51 273.3
JK Bank 33.45 4.1
City Union Bk 8.04 42.3

Why not go for good private sector banks like hdfc bank if u want a concentrated exposure to banking sector?

Personally I dont go for portfolio allocation of more than 25-30% in a single stock. But in your case since u are riding a winner it makes sense to keep riding it.

Hi Hitesh sir,

Initially I had high conviction in Ajanta, hence I allocated around 27% to Ajanta, rest has been through capital appreciation.

Currently, I am looking to reduce concentration, but scripts with margin of safety are tough to find in the market, hence been sticking to stocks I had invested for now.

Went through valuepickrs board and realised many of them are interesting stories but margin of safety for new investor at current levels, be it Kaveri/PI/Mayur/Greenply/Astral is low, I feel.

(Have been a little more attracted to Mayur, as I feel it has some margin of safety)

Hope I had discovered the site earlier, but some part was compensated by timely discovery of Ajanta.

Will like your inputs to streamline the portfolio a bit more towards good opportunities with some margin of safety.



Stocks % weightage
Ajanta Pharma 59
JK Bank 29
City Union Bk 5
Kaveri Seeds 3
PI Industries 2
Avanti Feeds 1
Torrent Pharma 1
Shilpa, Alembic, Polymed tracking positions

Highly concentrated in the top 2 scripts, trying to diversify as I find reasonable opportunities and develop high conviction which hasn't been possible due to time constraint.
Currently I find opportunities that are good, but still not good enough for churning of portfolio as I don't personally feel concentration is a bad thing.
Having said that, probably, the incremental capital won't go to the top 2 scripts
Looking to increase % allocation to agricultural space with more allocation to KSCL, Avanti and PI Industries in future
Will include some consumer names if and when I get opportunity with margin of safety.
I try to avoid IT industries due to their lack of predictability.
May shift focus to some aggressive banks if I am able to build higher conviction in them.
I still expect to have high concentration in pharma (not as high as current allocation, around 30-40%) and banking in future and will probably diversify within pharma space in future.
Views Invited

IMHO, by exposing yourself to two scrips in such high concentration, you are exposing yourself to severe risk. I would suggest that you book profit in certain portion of Ajanta and J&K Bank at an opportunistic time and move that money to other growth stocks like Mayur and Manjushree.

Thanks Strong Brick.

Have had same realisation, concentration is necessary, but exposing 60% to a single stock isn’t wise.

So I am changing some allocations to have a more balanced portfolio approach.


Made some changes,

Reduced concentration in Ajanta Pharma and JK Bank, but still a lot higher than comfort zone.

Sold City Union Bk, Avanti Feeds, Torrent Pharma.

Made new entries into Acrysil , Alembic Pharma and Dhanuka Agritech.

Increased allocation to Kaveri Seeds.

Current Portfolio: (23/4/14)

Stock Allocation %
Ajanta Pharma 45.8
Kaveri Seeds 12.6
Alembic Pharma 10.2
Avanti Feeds 10.1
Shilpa Medicare 7.5
JB Chemicals 6.5
Symphony 2.8
DFM Foods 2.2
PI Industries 2.2

Sold off JK Bank.Reduced weightage of Ajanta Pharma. Many of above are fresh entrant in portfolio.

Planning to reduce stake in Avanti Feeds & JB Chemicals as they were more of an undervaluation bet. Plan to increase stake in DFM Foods & Symphony.

Hi Utkarsh ,

Compared to avanti feed and jb chemicals ,symphony valuation is very high if we consider the trailing and fwd p/e .Could you elucidate the rationale behind buying symphony at this price?

Hi Saurabh,

Avanti and JB were more of opportunistic bets and I really liked Symphony’s business model.

Avanti is a bit of seasonal business dependent on too many variables and I’m getting more inclined towards simpler businesses. JB’s product portfolio isn’t as good as other pharmas in the portfolio & hence was invested for recovering undervaluation gap and not for the longer term.

Symphony’s IC business looks good and valuation wise, cash and carry business with outsourced productions provides a significant advantage in terms of scalability of the business with high profitability if the company can leverage it right. Management is making all the right noises like increasing export share.An ideal candidate for disproportionate growth, if and when opportunity presents itself.

Although, I would prefer DFM foods over Symphony for allocating incremental capital, (subject to management walking the talk in DFM) due to higher valuation of Symphony. Still I would be a buyer in Symphony if market cap retracts to region of 2000-2400 cr for a longer term.