Long Term Portfolio

I am posting my portfolio here for feedback from senior fellow boarders.While I've been active in stock market from 2010 mostly through mutual funds, only recently from 2014 I started investing into direct equity

Investment horizon is long term 5-10 years as my short term goals are covered through SIPs/ FDs. I am working professional and have cash reserves around 30 %

Some of my holdings which are less than 1% ( e.g Asian Paints) I have started investing very recently and plan to accumulate more in next few months. Few others Like TCS/SBI/ICICI which very purchased during 2014 have also corrected a fair bit as well.

Basic aim is to reduce number of stocks to below 20 and preferably to around 15 or so.
views/feedback/suggestions invited.

Holding % of Portfolio

1. TV Today 7.28%
2. Larsen & Toubro 6.26%
3. Tata Consultancy Services 5.87%
4. NIIT 4.54%
5. ICICI Bank 4.21%
6. Ambika Cotton Mills 4.13%
7. Camphor & Allied Products 3.99%
8. United Spirits 3.85%
9. Godrej Properties 3.81%
10. Selan Exploration Technology 3.68%
11. Pantaloons Fashion & Retail 3.64%
12. SKM Egg Products Export (I) 3.60%
13. Vidhi Dyestuffs Manufacturing 3.54%
14. Sanghi Industries 3.46%
15. Anuh Pharma 3.33%
16. TCPL Packaging 3.17%
17. Vadilal Industries 3.13%
18. Fluidomat 3.10%
19. Geometric 3.09%
20. Transport Corporation 2.92%
21. Mayur Uniquoters 2.86%
22. State Bank of India 2.83%
23. Ramco Systems 2.80%
24. Mastek-Majesco 2.70%
25. Reliance Industries 1.94%
26. Nilkamal 1.94%
27. Thomas Cook (India) 1.83%
28. Arvind Infrastructure 1.74%
29. Asian Paints 0.74%

 

All stocks are top quality stocks except SKM Egg which I am not familiar about. Can you tell the story of stock and how EGG company is good for long term investment (what is competitive advantage moat that egg company has)?

Why Pharma allocation is only 3.33% and only one stock Anuh Pharma. IMHO pharma allocation should be at least 25% (max for any sector) and there must be top quality stocks (at least three because of FDA risk).

I think sooper large caps like L&T, SBI, Asian Paints, TCS, ICICI, Reliance may not give big returns. Are you looking for safety? If you are young person with regular income you can look more midcaps which are like bluechips in safety terms. E.g Mayur Uniquoter in portfolio is like bluechip because of management quality and steady business. Same is about TCPL, TCI, Thomas Cook, Vidhi (microcap), Godrej, Ambika, NIIT etc. Why don't to shift from big large caps into these midcaps. These midcaps are as good as largecaps from POV of safety of capital. Not much risk but growth potential is high. So I suggest shift from large caps into good midcaps which are already in portfolio.

Selan is good contra stock if oil goes up shooting again.

Congrats for good portfolio

 

existing portfolio is good.deploy cash in small amounts in promising stocks.
you can look at heritage foods and fcel.

 

Thanks for the feedback. As correctly pointed Large caps were my intial purchases when I started direct quity in 2014 start. Infact L&T I had purchased in 2012 and had booked 60% profit in Feb 2015
The remaining units are Free of Cost, but CMP of L&T is trading around 52 week low so i am holding on
I also plan to reduce my allocation to IT ( specifically Mastek/Geometric)

I also want to increase allocation into Pharma sector but not sure if any company are available at good valuations, Currently I am looking at Torrent Pharma.how are prospects of torrent pharma for future?

Regarding SKM it the only listed firm in the processed egg products industry. It has one of the largest Egg processing facility in India in Chennai. It is one of those High Risk small cap company in my profile which I am tracking closely

Future Outlook of SKM

1. Targeting to be debt free status by next 1-2 years which should positivly impact in its bottom line
2. Potential of company's product is very high and only very few companies are there in this field.SKM is the only listed producer of Egg Powder and other value added products from Eggs.
3. Even from the unlisted space very few competitors are there and it is not easy for new entrant to replicate the processing SKM currently does by any new entrant in this field.
4. Company is in expansion phases in Russia and getting enquires from other counteries like Japan & other european counteries etc

Major Risk
Impact of Recent unfortunate chennai flooding will be known after this quarter result, but these type of unfortunate events are beyond control of anyone
Unexpected diseases affecting birds may create problems.

 

Mitaliji I am impressed by your stock analysis because it is clear you have studied stock thoroughly. What is your opinion of suggestions to shift from large cap to blue chip stocks in mid cap stocks. I think over five years blue chip mid caps will give return than large cap stock

 

I concur your view that blue chip mid caps will outperform Large caps if the economy starts picking in next 2-3 years. The rational behind shifting from Large cap to Mid caps is

1. In last 6 months we have seen quite a number of problems surfacing for banking stocks specially the PSU banking sector and looks problems are just emerging. So I am just thinking to exit SBI & couple of other largecaps and may be shift to one of the Pharma stocks
2. The other aspect my 50 % investment in mutual funds SIP maiinly largecap equity Diversified funds .The allocation of these funds is mostly into financial around 20% and Top 8 holdings is as below. Hence I am mostly invested in Large caps via SIP.

HDFC Bank 8.11
ICICI Bank 4.17
Axis Bank 3.80
Infosys 3.62
Maruti Suzuki India 2.94
Larsen & Toubro 2.64
Reliance Industries 2.28
State Bank of India 2.13 ​

PS : I have already taken into account that returns from mutual funds will not be in par with the returns from Direct equity

Views/ suggestion invited if this approach makes sense. Also I want to reduce my portfolio to around 20 so which other stocks I should exit

 

holding 29 stocks is not good for any investor other than mutual funds. cut the no to 10 stocks. over diversification preserve wealth but doesnt create wealth.

 

May not be a bad strategy after all. 5 stocks are < 2% and many are around 3-4%. Since stock returns are not only dependent on past performance but also on future expectations,market conditions,I feel its better to start with a diverse portfolio with large caps mid caps and small caps. As time pass and many stock story play out ,you can cut down on the losers in portfolio and add on to the winners in the portfolio. That way sounds more comfortable to me than putting all your money in 5-10 stocks and always have fingers crossed.