Great time to make fundamently strong blue chip portfolio

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Sep 2, 2015.

  1. New_Investor

    New_Investor Active Member

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    RMSC Sir, I think this is pure politics. Mr. Chavan very well knows that he won't be able to ban liquor in his state. Hence the statement. Even if new liquor shops are opened in the state, who will know. Media will not track this news. Media won't keep a watch whether new liquor shops are opened or not. Because they are very well aware that the government won't stop opening of new liquor shops.

    Actually law says that Liquor shops and pann beedi cigarette shops should not be allowed in the vicinity of schools and colleges. Is it implemented? No.
     
  2. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    I think Q is whether you want to invest in such stocks when whole universe of good stocks is there for investment. You can pick good stocks in Pharma, NBFC space at good valuations then why you want to dabble with sin stocks in liquor and cigarette space. Only justification possible is that rewards from sin stocks is going to be huge but that is not so.

    VST (Charminar Cigs) has given return of (-) 7% in one year. ITC (Wills Cigs) has given return of (-) 5% in one year. Globus (IMFL) has given return of 7% in one year. So, there are no great returns from sin stocks in contrast Pharma stocks have given jumbo returns. JB Chem has given 33%, Granules has given 96% return in one year.

    So I think there is no sense of investing in sin stocks because returns are low and there is risk of regulation which can bring down/ reduce business. On a comparative basis, other stocks are much better investment proposal than sin stocks.
     
  3. shakti khanduri

    shakti khanduri Active Member

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    @ Mr Mukherjee -I fully endorse your point of view. Is it not strange that teetotaler are recommending alcohol and cigarette stocks thus encouraging these industries for their material gains knowing fully well their harmful effects on the society thus igoring citizens moral responsibility . By their logic even more deadly vices like drugs,hashish etc also should be allowed to sell freely as there is demand for them also. I entirely agree with you that in Indian context these industries have not very encouraging future in near term.WE SHOULDN'T THE OBVIOUS. By the way, Medical science does not encourage use of alcohal- recommends its use where it is necessary .
     
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  4. New_Investor

    New_Investor Active Member

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    I think we should stop this debate on Cigarette Stocks and Alcohol Stocks. Some of the members are feeling offended / hurt as Cigarette and Alcohol Stocks are their most favorite Stocks. So let us stop the debate and move on.
     
  5. Sachin pathak

    Sachin pathak Active Member

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    So in the same breath ...what about

    all those which are collectively ensuring that there isnt much future through pollution, global warming, climate change or the defence companies which thrive causing unrest or those engaged in questionable medical practices including HORRiFIC medical research on helpless and mute animals or whose produce is on the back of death of millions of animals......

    I suppose that this is all very fine....since pharma seems to be the flavour of some who but find investing in companies into cigarettes and liquour sinful and failing to uphold some moral responsibilities
     
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  6. BombayBoy

    BombayBoy Well-Known Member

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    MP government, specifically the CM is already ruining the liquor industry there. An astrologer has advised him against allowing any liquor business for it will threaten his political position.
    There are 2 companies with valid licenses and plants ready to go live and start production, but because of the personal beliefs and vested interest of an individual, crores of ₹ in investment blocked. Banks are looking at fresh slippages.

    For those with high moral grounds, please refrain from investing in businesses with exposure to fossil fuels, mining, medicines, defence (arms & ammunitions), jewelry (blood diamonds are real), banking (you might as well give up your interest earned). Pharma - look up how clinical trials works - humans are treated as guinea pigs. Petrochemical in everyday product are known to cause hormonal changes and serious health problems, including cancer. Take a look at your deodorant or shampoo for contents and look it up. Go organic.

    One should be open to debate or their views being questioned. I'm sorry, not a part of your mutual appreciation society. Repeating the same thing again and again doesn't make you correct. The last time I checked, India was a democracy and people could do as they like - what they consume. But damn, intolerance is real.

    No, I don't hold any stocks with exposure to cigarettes or alcohol business.
     
  7. Sachin pathak

    Sachin pathak Active Member

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    Oh come on..... Only cigarettes and liquour are 'touch me nots' and anybody who invests in such companies commits a sin and/or fails in discharging his/her moral responsibilities towards society.
     
  8. kharb

    kharb Well-Known Member

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    I had mentioned Deewan Housing Finance Ltd as my Deewali pick.This stock is in my portfolio.Today again token addition but still less than 1.5% of my portfolio.No hurry ,waiting some realy bad phase of market to increase exposure.Stock looks to be a steady performer and suitable for invester like me for Sensex NIFTY beating or aprox 20% returns.I have also another housing finance company LIC housing and GIC housing in portfolio. LIC fin is again around 1.25% of my portfolio ,but GIC housing is just 0.5% of my portfolio.I would like to increase my total exposure to housing finance between 5 to 7.5% of my total portfolio. I like DHFL and LIC housing the most from housing finance pack.I am also presently positive on another NBFC, Reliance Capital and hope for better show from this now onward.
     
    Last edited: Nov 30, 2015
  9. kharb

    kharb Well-Known Member

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    I have taken token entry in HSIL today,always love to have branded players in portfolio.Company is in basic housing play ,a permanent theme for country of 1.3 billion.In my view stock can give sensex or NIFTY beating returns in long term ,which is my basic criteria for a stock entry in my portfolio.I Would like to increase exposure upto 1% of my portfolio in four tranches.Stock was on my radar but waiting for correction. But now many experts have started recommending ,so desired correction may not come.May go beyond exposure of 1% of my portfolio in case there is deep correction in stock.
     
  10. kharb

    kharb Well-Known Member

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    Where is our salary going.Consumption and housing related expenses are Eating away large part of it and there is no escape. So stories related to this may be good investment to recover that money.More over people are overspending so few Banks like HDFC bank,Indusind,Kotak are big loan givers to such spenders. So Stocks like ASIAN paints,HUL,Maruti,two wheelers ,HDFC banks along with Kotak ,Indusind ,housing finiance and lot of other branded consumer products is going to be a regular investment theme in a country of 1.3 billion.Which compnies are going to benifit from ongoing consumer boom of 1.3 billion people.Which are your consumer spending related idea,pl share.I would continue to bet on this ever green theme.
     
  11. Sachin pathak

    Sachin pathak Active Member

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    ITC :) and liquor companies. Then...

    Britannia, Gillette, Hero and Maruti
     
  12. New_Investor

    New_Investor Active Member

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    p&g, td power systems and colgate
     
  13. kharb

    kharb Well-Known Member

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    I am no fan of ADAG group and I as invester underperformed in his stocks.But as mentioned earlier in many other threads ,I have been positive on ADAG for last few months.I have nothing to discuss further ,but just would like to mention,that all is going as per my anticipation ..Of late ADAG stocks have been propelling my portfolio. I am positive about ADAG in general but in Reliance Capital in particular.I will be not surprised to see this as four digits stock in long term.ADAG group is under repair mode,and speed of a company under repair is generally faster than normal growth.You not only gain due to positive change but also gain out of reduced negativty .I would like to Ride the up cycle of ADAG specially Rel Capital.
     
    Last edited: Dec 3, 2015
    Srouta Mukherjee likes this.
  14. kharb

    kharb Well-Known Member

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    Small addition in DHFL today again as not finding fresh new idea, still below 2% of my portfolio.
     
  15. darth

    darth Active Member

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    I agree completely. I the illusionary chase of multibaggers ( and thus holding stocks for long term), one should not miss the regular opportunity of making some trading income by churning one's portfolio without changing the constituents... So sell when stock peaks or rallies considerably and reenter again when it falls
     
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  16. kharb

    kharb Well-Known Member

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    Agreed ,but very difficult to implement .I Sold Vardhman Textiles at 860 and wanted to re enter below 700, but failed .Stock turned back from 700 ,today re entered at 798 .Now can not wait further as I want this stock in my portfolio.
     
    Last edited: Dec 16, 2015
  17. New_Investor

    New_Investor Active Member

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  18. kharb

    kharb Well-Known Member

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    Again Vardhman Textiles is up,have to buy more at 821.So could not profit as anticipated .Stock went down to 700 and turned back against my target of below 700.
     
    Last edited: Dec 17, 2015
  19. kharb

    kharb Well-Known Member

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    Today again invested small amount in Vardhman Textiles.But still Vardhman textiles is less than 2% of my portfolio against earlier holding at 5% of my portfolio. Now I am fully invested,may have to fire some non performing stocks from my portfolio to generate cash.
     
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  20. BombayBoy

    BombayBoy Well-Known Member

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    kharb ji that's a very strong conviction on Vardman, could your share the story for me, might buy it or Sutlej
     
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