I have started this portfolio 2 years back and I am comfortable holding both winners & losers incase the underlying value is intact
Investment style - Keep adding stocks within the portfolio whenever there is a considerable dip. Also, keep selling stocks partially, whenever there is a run-up.
Since I am from Hyderabad, there are many stocks with head office here. However, have been consciously trying to diversify the portfolio.
I wouldn’t comment on individual stocks. But here’s my two (or rather three) cents:
First, is your direct equity portfolio goal based? If so, then does the current choice of stocks align to that?
Is there a particular thought process behind the portfolio, e.g. Growth, Balanced, or Opportunistic etc. ? Are you targeting overall annual portfolio returns or chasing individual stock returns with high churn resulting in expanding AUM ?
Lastly, At first glance your stock selection seems skewed towards Industrials/ commodities (steel, pipes, EPC, coffee, Gas).
Depending on your Answer to my second Question, a few ideas to study:
Internet companies - in terms of capturing the next decadal growth.
IT Cycle might be turning as interest rates drops and AI integration could turn out to be a strong tailwind.
Capital market - financialization of savings + shift towards formal economy + Mobile platforms providing easy access.
And in Pharma, CRDMO - outsourcing of entire pharma value chain after the initial discovery.
@MrBisht : Thanks for the constructive feedback on my portfolio!
To answer to your points:
Direct equity portfolio is not any specific goal based. I have a watchlist of few companies with ROCE > 15%, Low/ reducing Debt, Sales and profit Growth & valuation comfort and keep adding to the stocks whenever there is a correction/ availability of funds.
Target is to have an above index level return with an expectation of a couple of stocks being potential multi-baggers in a 2-year time frame.
I am a Sales & Marketing professional working with EPC & Manufacturing companies, and hence it is skewed towards those sectors as I interact with the industry professionals. Have increased the MF portfolio size constantly to address the skew issue.
Thank you for suggestion on the sectors for future investment, will study them in detail.
IT - Have reduced exposure to Infosys, and not have not added any other stocks due to the stagnating growth in the sector in last few Qs
Capital Markets - Was invested in ICICI Securities before it got delisted. Studying Canara Robeco AMC apart from holding UTI AMC.
Pharma - Yes, CRDMO is a sunrise sector, however not comfortable with the valuations these companies are available at.
Dear Vijay.
You can look at the following stocks for LT
IDFC First Bank Stock at an inflection point. No further fund raise.
Syngene International. Completing capex. Stock at an inflection point
Ather Industries. Excellent management and calibrated growth.
USFB. Credit cost and NPA peaked out. Prudent management. Expected Universal Banking licence. No fund raising for next 18 months.
Sanasera Engineering. ADS business will be a growth driver.
SOM Distilleries. Only 2 listed players in Beer segment. UP plant will be a game changer. Corporate governance issue is being addressed by management.
Value stock at Rs 108.
Sumitomo Chemicals. Stock corrected due to temporary headwinds.
Holding HDFC Bank , ITC and CCL products from your list.
Regards
Nagaraj P
