Need advice on my portfolio- Please suggest

Hi All, Here is my portfolio for Long Term at least 3 years
State Bank of India- 2400 shares@ 200
Coal India- 525@ 275
Vedanta- 1180@155
NMDC- 800@ 141
Tata Motors- 775@ 375
Sun Pharma- 250@ 900
Larsen & Toubro- 50@ 1500
Suzlon- 2500@ 21
IDFC- 1200@ 155
Please share your views and opinions, Would like add or edit the protfolio accordingly.

 

These are current holdings in the companies

 

Why do you have so many large cap stocks in the portfolio? Are you a conservative investor? Even if you are, there are several high level mid-cap stocks that will give you a better return over a period of five years. For example, I would shift from Sun Pharma to Ajanta Pharma because the latter has a lot more growth in it while the former is a huge large-cap.

 

I would suggest to cut down you commodities and metal exposure in the short term and redeploy into some current favourites - some names could be granules, aurobindo, britannia, ashok leyland etc. Metals isnt a gonna give you returns over 12 months.

Suzlon has been opined as being risky... But i would recommend remain invested. With PM's unflinching attention on power, there is definite traction and suzlon should be one beneficiary. I believe Tanti wasnt a fraud, he just got his expansions wrong leading suzlon into a mess. But this doesnt take away the underlying competency/experience of the company in the renewable energy sector

 

Hi first of all thanks, i am really encouraged by your replies, the idea to get into Large-caps was only because they were already cheap due to market correction. Most of the stocks i brought are below their book value or around BV of 1. I am not at all conservative but realized that mid-caps have run up much more than large caps and expected decent return from the portfolio over next 24-36 months. Also idea behind Coal India and NMDC was also partially due to their dividend paying capabilities other than being PSU in commodity space. Suzlon came in only because of restructuring and as well DS getting in to support Tanti. I thought Tanti did right things at wrong time and bore the brunt of brutal market.
So I still wish to add on some more decent stocks maybe 2-3 to complete this portfolio and I would prefer adding some mid-cap flavor as per your suggestions. Please suggest me what should i add and is there 1-2 stocks which should be replaced considering my reasons behind their purchase. Looking forward to your encouraging suggestions.

 

Hi Mam, can you please suggest which brokerage should i be following, there are too many and I am unable to pick and choose between them. Also any bets you suggest in FMCG and Pharma or mid-cap space which you feel should be there in anyone's portfolio come whatever may considering this downturn oportunity

 

You and i are on the same wave length on suzlon. Keep it.

Stocks react according to their individual prospects... Even if the markets hadnt corrected, stocks like tata motars and metals would have corrected downwards due to stock specific issues.

I mentioned a few stocks already. They have run up from my entry level but are stocks which should still give reasonable returns in the next 15-18 months ( which your metals and tata motors are not expected to). So my suggestion that you could for now reshuffle. But having said this, dont loose sight of metals. I have said this before, i am already seeing static value in names like tata motors, hindalco, tata steel, coal india etc given that these stocks have beaten down given the commodity crash. given that commodities is cyclical, this downturn is opening a window ( i think such stocks will fall some more) to start nibbling into such stocks for when the uptrend happens they will give multiple times returns

 

Thanks Sachin Bhai, I am taking your opinion on Aurobindo and Ashok Leyland. What do you suggest on - Bata, Ashiaana Housing, Indiabulls hosuing, CESC and Ultratech cement. Which one would you prefer out of them

 

I would suggest you move out of suzlon and move to another more stable company with much lower debt, and is working in renewable energy space. Look at Inox Wind, PTC financial or NTPC if you are conservative but still want to invest in renewable energy space. I still feel that the problem of power sector is not so much in generation but in distribution and transmission. If I would invest in power space, then I will look at T&D companies like KEC, Kalptaru etc.

 

Also suggest some kind of entry price for Aurobindo and Ashok Leyland I think they have run up quite a bit. Should I wait or enter now

 

Dinesh Bhai, Suzlon was at 6 Rs. when i first entered into it, and kept adding it. I agree that debt burden is high. but turnaround is coming probably and maybe 2 qtrs later there would be some big moves. If it does not happen in next 2 Qtr will move out, and will consider PTC financial. Which one do you have bets on

 

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For me it would be bata and ultratech. I know ashiaana housing is on many 'hot lists' but not my types. Maybe having lost on DLF i have lost confidence in realty companies

 

Also Nomura has put a buy on Suzlon with initiating coverage for 35 bucks.

 

just a advice based on valuations...convert Vedanta to Tata Steel (valuations cheaper, better corporate governance), Sun Pharma Cipla on correction (purely on valuations), IDFC to PNB or Stanchart IDR (valuations far cheaper) , Suzlon is high risk high reward but if I had the option I would switch to a cement stock (The Ramco Cements, Ambuja )..this advice is purely on current valuations

 

Thanks, I was thinking about these 2 majorly as well. wavelength matches one again. So i am adding Bata and Ultratech. Just 2 more on consideration list- Jubilant foodworks and United Spirits. I am skeptical about entry points as they are quoting at high PE multiples. Any other suggestions

 

Nothing material is going to happen in next two quarters....maybe just the initial greenshoots. Its one of my punt investments just on a gut feeling and my gut has been more right than wrong... Punt investments - those that could turn out to be what some call multibagger

 

I had brought Stanchart IDR on IPO but didnt move at all for nearly 2-3 years. I kept it for pretty long time. Why do you suggest it. Any particular reasons. Also PNB had pretty bad results and IDFC demeger gives me entry to IDFC bank. Plan to hold them for 3 years, anticipating big moves there being private bank space *expecting performance like YEs Bank" over 3 year horizon

 

Absolutely same reasons and have been nibbling at it whenever it falls. Purely no other reason other tahn gut feel of turn around being around the corner and prospects of it being multibagger

 

Jubliant food was one of my favorite trading stock.... Until i moved to marksans. But it has always commanded high p/e's. But bear in mind that not all low p/e's stock are undervalued and similarly not all high p/e's reflect stretched valuations. Jubliant rides on the huge potential of changing food habits of the indians and low penetrations.

United spirits - against my principles to invest in liquor companies. So wont ever invest even if i have a 100% sureshot inside information