Advice on my portfolio

Hi ! I would like to get advice on my portfolio. Name of stock and the weightage in my portfolio is mentioned.

Page Ind. - 14%
Kitex - 5%

Granules - 20%
Unichem - 2%
Marksans - 1%

PI Ind. - 18%
Vishnu Chem - 2%

Repco - 18%
Gruh - 9%

Kellton - 7%
Cambridge - 4%
SQS India - 1%

I am keen to increase the weight of Pharma and want to increase exposure in Unichem & Marksans. Or, buy some new pharma stock.
Not very keen to add any more new stocks. Welcome comments on specific stocks and conviction from other members.

Regards

 

@Srouta Mukherjee will definitely help you to pick pharma stocks

 

I see you are a concentrated portfolio investor. Four stocks account for 70% of the total portfolio. All four stocks are of market leaders in their own segments.

I also see that all the stocks are mid or small caps. No large-caps.

Given the bias towards concentrated holdings, why do you still hold small percentages of up to 1% in some stocks? Are these 'test' positions?

I am also curious to know whether a concentrated portfolio does out-perform a diversified one. Pl share the YoY performance of the portfolio as compared to the Nifty, if feasible.

 

I would advice you to reduce a bit of exposure from housing finance and also from Granules in pharma. And to deploy the cash into some consistent performing pharma stocks like JB Chem and Torrent Pharma. You can also consider Strides Shasun for the next 5 years. It has very good prospects.

Also, i observed that in financial sector you have exposure only to housing fin companies. Instead of having 100% exposure to housing finance companies only you can deploy a part of it into some other high performing finance company like Capital First. I am sure that in the long term CAPF will not underperform the housing fin companies. Your financial sector exposure will get strengthened.

In the chemical sector you can decrease your PI holding and invest in Sudarshan Chem or Camlin Fine Sc. Or at least increase your exposure to Vishnu Chemicals. That would give more punch to your portfolio.

High flying companies like PI industries, Page and Kitex have become sluggish of late. And they are trading at exorbitant valuations. Better to switch a part.of that money into something which is yet to move up.

My suggested stocks would be JBChem, Strides Shasun, Torrent Pharma, Capital First, Sudarshan Chemicals to add into your portfolio and to increase holding in Vishnu Chemicals for the long term by pruning exposure to hyped stocks trading at astonishing valuations.

All the best !!

 

Page is at PE of 65x. Is it safe stock to put 14%? Slight under-performance and even if stock goes to PE of 45 (still expensive) you have big loss. Is it not dangerous to have such high PE stocks with high allocation in portfolio.

Why you have chosen Vishnu Chem? There are no research reports about it. You have any information about Co? Pl share.

Pharma allocation of 23% is reasonable IMO. I agree JB Chem is very good stock. It has low PE, low FDA risk (domestic business), huge cash on books, good management etc. It has target of Rs. 330 as per Reliance Securities. IMO it is very safe stock for buy and hold. Torrent is also very good pharma stock to buy and hold.

 

Recently Ashish Kacholia bought a stake in Vishnu Chemicals. There is a write up about the prospects of the stock on RJ forum itself. Seems to be a promising company. IMO it is still at a very initial stage of growth. It has not yet come to 'limelight' and trading at cheap valuations unlike PI Industries which has shown tremendous growth and now trading at astonishing valuations. Can be a good alternative in the chemical space.

Here is the link https://rakesh-jhunjhunwala.in/ashish-kacholia-nirmal-bang-home-in-on-mega-bagger-micro-cap-stock/

 

I am positive on housing finance compnies,although my picks are different LIC housing and DHFL.Repco and GRUH are better compnies but with higher valuations.But still these are good long term hold, so may continue.Don't track your last three I think are technology names,but stocks seems to be in news.Most of other stocks are also hold except two textile stocks,page is good company but very richly valued. I am afraid growth will slow down due to higher base restricting gains.I realy don't track Kitex but don't give me much confidence.So go by your own judgement here.Seems to be good portfolio in general.Just kick out those stocks which don't perform in long run retaining performers.

 

I have a simple question : does your portfolio represent/in line with your risk appetite?

 

Dear Carl Icahn (sounds a bit wierd as it feels I am talking to the US Investor )

Your observations are correct. I believe that the mid caps and small caps will have the capability to GROW my portfolio rather than protect (with Large Caps).
Yes, the small percentages are initial positions and aim to grow them. or, shuffle the stocks within the industry category.
My super concentrated portfolio has given me above average returns. Page is a 4 bagger. Repco is a 5 bagger. But I do not have absolute numbers for comparison as you have asked.
Thanks for your inputs.

 

Dear Srouta,

I started buying Page when it was 1200. I agree with you on the current opinion of Page especially with their last 2 qtr results. So I have reduced my holdings. But it is an excellent & dominant business.
In Pharma, I am more keen on export oriented co's. They will be able to leverage on USD rate, patent regime. IMO efficient Bulk Drug manufacturers should be searched for excellent returns. I believe Pharma may the sector in the next BULL run.
Vishnu Chemicals was identified by Ashsish Kacholia and seems to be a decent co. I want to reduce PI and slowly change to another stock.

Thanks for your inputs.

 

Dear Kharb,
I chose Repco & Gruh in my portfolio with the aim of sleeping on them for a couple of years and get compounding gains. They are in a niche business of low ticket loans, a segment which is specialised and banks will not get into this segment. Hence, protected.
Since, I am an IT guy, I believe the last 3 names. they are in Cloud based solutions which is the future. Infact this Cloud is creating all problems for the big players. Centralised services with much lesser manpower requirements.
Kitex is the 3rd largest infant kid clothes company in the world. They are now creating their own brand in the USA. This should be the next trigger for this stock. Again a very niche segment, difficult for new entrants and the play on USD rates etc.
Thanks for your encouragement.

 

Congratulations, page is 4 baggers,If I would have been you,would have sold atleast 25% tomorrow morning to cover my cost.Good company but now is time of tapering growth at stretched valuations So don't expect it to repeat performance of past in future.

 

Yes, Darth. I have been investing in the stock market for nearly 2 decades (right out of college). I know that the composition is mid cap & small cap.
I am covering myself a bit by, investing a small amount in MF with a Large cap bias.
Thanks for raising the flag.

 

Reduced much more than that !!!

 

You are a wise invester,I just want you to be cautious in Kitex, rest is fine.Better you start posting your new ideas for benefit of Rest of members .Good portfolio.

 

Dear Parin,
Thank you for recommending some good stocks. I will definitely do more research on them. Especially names in the pharma space.
I intend to reduce exposure to PI Ind. and Repco Fin. but still waiting for an opportune time. The thought behind reducing exposure is more to get my overall portfolio weight more aligned to pharma & 3 IT stocks. I will retain them as the Indian consumer market is very huge to ignore.
Your continued inputs are most valuable. Thank you. And hope you review this portfolio again in a couple of months.
regards
Harsh

 

my humble opinion is that you could sell page for good price (only 75% of page holdings and keep rest)and add that money to repco.

 

PI is a good name to have in your portfolio. Kellton and Cambridge currently qualify as good short / medium term bets especially Cambridge : which is showing a daily 2% rise everyday again after a steep fall and clearly speculative for there is hardly any volumes

 

Has Cambridge embarked on it's downward journey once again? The scrip down 2%... could be a daily trend. Watch it

 

Page Industries, Kitex, Granules, Repco and Gruh. You are a savy investor. The only jarring note, for me, are those marginal positions which don't make sense to me. Unless they are "test" positions like Carl mentioned. I would look at IDFC bank seriously because you are an investor who likes to get I early and reap the benefits.