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Hi fellow RJ members,

Here's a list of my investments. I mostly like to buy and hold. Not concerned with dips (but that cost me dearly in Opto Circuits India Ltd.)

Hold (wasn't in market until Aug 2015)

• Indoco Rememdies 40 @ ₹60 (sold @ ₹325 after Q2 results)
• Bajaj Hind 125 @ ₹18
• NHPC 300 @ IPO
• Opto Circuits 156 @ ₹180
• Varun Global Ltd. 125 (from Varun Shipping Co. Ltd.)
• Varun Resources Ltd. 500 (from Varun Shipping Co. Ltd.)

Purchases since Aug 2015

• Merck Ltd. 10 @ ₹784
• CONCOR 7 @ ₹1350
• Corporation Bank 100 @ ₹45
• NALCO 200 @ ₹38
• SBI 50 @ ₹240
• BF Utilities 75 @ ₹555
• Kwality Ltd. 130 @ ₹74
• OMDC 4 @ ₹2130
• GMDC 200 @ ₹76.50
• Axis Bank 50 @ ₹477
• Eros 70 @ ₹312
• Monsanto 10 @ ₹2385
• IndiGo 30 @IPO

Your suggestions and views on the existing picks are welcome.

Feb 29, 2016 - most stocks from the opening post have been sold

 

Looks like a balanced portfolio!
My worry is high Mkt PE on the range of 22-24...Short term pain may erase portfolio gains... Isnt it better to be in cash .. Wait for reasonable levels and invest in quality stocks... Also with a non corrupt & pro active govt ..ailing PSU stocks which are highly undervalued looks like a good bet.
Regards
Mahesh

 

I think allocation to pharma is VERY low. Even Indoco is sold??? Please see article by Ajay Srivastava where pharma is called GOLD MINE:

https://www.moneycontrol.com/news/m...ly-economy-struggling-dimensions_3872981.html

Good idea is to dump losers like Eros and metal stocks and add pharma stocks which are secular such as JB Chem, Ajanta, Shilpa etc.

 

@K.Mahesh - I think of the market correction too and you are absolutely right on the short term losses, from a profit, in the last trading week it has moved to losses. The problem with PSU stocks will be that the GoI will keep milking them either by forcing them to pay dividends or sell stakes (to cover the deficits)

@Srouta Mukherjee - Thanks for the link. I'm with you for the outlook on pharma but consider the fact that every single stock has run up a lot and the results aren't catching up with the expectations (Lupin). I feel, going forward it will be selective stocks performing rather than all and sundry. Will be looking at adding some from the front run rather than going after the likes of Granules. Eros - will book loss if it is a matter of corporate governance. Had to sell Indoco after a flat result.

NALCO is in there for the cyclical upturn & good dividend yield. OMDC - is a mining company with a very low equity & huge reserves. Betting on a bonus or dividend. Looking at adding more PSU Banks though.

 

@BombayBoy Point Taken...Guess the excesses or froth in valuation will continue for a while as DII ,retail investors pump in more money ,adding more liquidity..the ad spends by Mutual Fund houses promoting SIPs is staggering...read in ET that an avg of 350 crs per month comes via SIP!!!... And as you point out that its going to be a stock pickers market the margin for error will be quite low...Cash + Fixed Income + Equity looks like a safer bet...
to me ( moderate risk appetite).

 

About Pharma where I am more focussed I am in agreement with you on the scrips on radar

 

Mahesh - looks like the time has come, I've begun to liquidate almost everything that is up on the list and other positions taken recently. Will be moving to cash and start buying gradually on corrections. Taking trading position in sugar stocks.

 

@BombayBoy Sugar stocks firing on all cylinders...how long the sweetness will last is the question.Balrampur & EID parry look fundamentally good... Renuka a pure speculative play..

 

Speculating what Mr. Mahesh?

 

Speculative being sans fundamentals....

 

nah Mahesh, i wouldn't say speculative, but just riding the wave, there's the crushing season, ethanol blending, global shortage of sugar & some measures taken by the Govt. to support the industry, still the States will have a role with the way they support the farmers and a lot of blah blah blah
make hay while the sun shines

 

@BombayBoy Sir, Could you suggest PSU Banks on your radar...( Personally holding SBI, Vijaya, Syndicate.)
Also with the talk of defense sector benefiting..your views on Premier Explosives.

 

Hi Mahesh,

sorry for the late reply, wasn't online for 2 days, please don't call me Sir, you can call me BB

i've started selling everything that's their in our accounts, booking profits/losses, will wait for the US Fed rate hike and dismal Q3 results given the state of affairs in our economy

among PSU Banks - I'd go with decent dividend yielding stocks (Syndicate, Corporation, Canara, Vijaya, UCO, Union, Bank of India) and a whole host of other PSU's like OIL, Balmer Lawrie, Coal India, MOIL, ONGC, etc which are trading lower due to the commodity meltdown

i am not really tracking any development of private participation in defence really, not a fan or may be don't like the story

buy financials/banks after the rate hike event

 

@BombayBoy i think u can get rid of all bad stocks when u can sell them at cost price.

 

Mr. S.P. Tulsiyan, Shae Analyst, in a recent interview said that real picture regarding PSU Banks will be clear in May or June 2016. The PSU Banks have exposure to various heavy debt sectors like aviation, power etc.

 

@w4wealth i've a lot of other duds that aren't there in the opening post and they'll never see their cost prices again

yes @New_Investor PSU Banks do the dirty job for the economy of lending to all and sundry and also catering to the populist measures of the Govt. which involves opening useless, no value accounts under the Jan Dhan Yojana and there are fresh slippages across asset categories for banks

 

KWALITY @127

 

Apart from ice creams, kwality is now offering dairy products in retail market. Earlier, they were supplying dairy products to big customers only. Now they will supply to small customers also.

 

TOUCHED 52WK HIGH

 

Nocil @ 52wk high of 57.95- ---- appears to go much higher