my portfolio - any suggestions are most welcome

Hi All

below is my portfolio any suggestions on which ones i need to keep or sell or add more are most welcome.
I have long term view of 10 years or even more. any other stocks you think i need to add for this time horizon

Stock ownership %
Aarti Drugs 8.6%
CRISIL 1.6%
D-Link India 1.1%
Dewan Housing 11.3%
Eicher Motors 3.9%
Federal Bank 11.4%
GIC Housing Fin 11.3%
GRUH Finance 3.4%
Gati 3.4%
Geometric 1.1%
Hero Motocorp 3.6%
ICICI Bank 11.5%
Kajaria Ceramic 11.3%
Karur Vysya 2.2%
Lupin 3.4%
Manappuram 2.2%
Marico 3.4%
ONGC 1.2%
Rallis India 1.0%
United Spirits 3.0%

 

You may consider Motherson sumi ...

 

do you think at this price is it a good buy..motherson sumi is at 50 PE and 15 times book i just want make sure i am not overpaying..

 

Gud thought

 

When did u buy eicher motors..

 

i bought eicher in feb this year...but some how i think i made a mistake, i got tempted and pulled in by the raise.

i will look to average as much possible, i still think royal enfield has a good future

 

When u look at the monthly sales data of enfield, sales growing at the rate of 49% ... So their sales numbers may get double ... Pe 70 will be justified ... I think u didn't make any mistake because u r long term investor ... Try to buy the quality stocks at current valuation ...if it goes low then buy more ...

 

Y did u buy fed bank and icici bank among banking stocks ?

 

federal bank was mostly a proxy for the weak rupee, its mostly in kerala and has a lot of NRIs...small bank good scope for improvement..but its not going as per plan as of now will give it 6 more months

icici was a value buy when i bought it was at 13 PE largest bank at such value could not resist....other banks were priced to max at that time...but stock has come down a lot this year...may be a buy if it goes down more

 

Ok ... Whats ur opinion on yes bank

 

i heard its a good bank...but have not looked it much to be frank

 

If u r long term investor then look it

 

sure...will research yes bank

 

Eicher Motors said total motorcycle sales rose 42% to 32,854 units in March 2015 over March 2014. Motorcycle exports jumped 58% to 825 units in March 2015 over March 2014. PE 70 will be justified soon..!

 

Good portfolio of solid companies. Buy why have Dewan, GIC and Gruh in HF space? I suggest you merge GIC and Gruh into Dewan. It is the cheapest stock. In Banks space you have Federal, ICICI, Karur, Mannapuram. Why so mahy from one sector. Better to stick with one good stock.

Also, what is the point of having stocks with 1% allocation? If it it becomes a 10-bagger, it is only a 10% increase in portfolio size. What is the sense in having so small % of holding. If you have low conviction, then better not to have than to have small amounts.

I also have many stocks in my portfolio. I am trying to make it into a tight portfolio.

 

thank you for the suggestions...yes too many stocks of low conviction...i am in the process of balancing my portfolio

 

Nice portfolio...these are some really good companies...my observation is on three counts...one you have close to 50% in financials and most of them are mid-caps...though the future is promising for financials its better if restrict the weight to 30% and add one more quality company...if you have 10 year horizon definitely look at either Axis/HDFC Bank..remember banks are also into housing finance and the benefit of economic growth will accrue to them...they are more expensive but over a 10 year horizon they will give stable benefits...also if you have 10 year portfolio definitely look at increasing weights of IT/cement/FMCG...cement will always be used for housing infra and FMCG will never get out of demand with size of population...IT will always have a future because the entire world is increasingly adopting new and new technology....and finally look closely at Aarti Drugs does it really merit a 8.6% allocation

 

What is the rationale behind ur investment in aarti drugs ?

 

Thank you bholu..i am a finance guy and kind of understand finance stocks better than other stocks so i think my mind is pushing me to buy stocks in that sector. but i see you have made great points and will work on changing the portfolio accordingly.

for aarti drugs...the stock was at 15 odd pe when i bought which compared to other pharma stocks this was cheap. the ROE of the company is slowly growing every year and is at 19.

they have a good set of API drugs. the profits have grown by 15% CAGR over last 5 years, market cap below 1500cr compared to prior year sales of 980cr. it has already given me 1:1 bonus shares so expect the dividends to be good.

lastly also mentioned in the 19th wealth creation study as 100 bagger ideas of motilal oswal.
as of now it has not given much profits but lets see how it plays out.

 

Dear Aditya,

Almost all your stocks look fundamentally good but you didn't mention your average BUY price.

You will reap juicy fruits even if you are holding these stocks for at least 1 year or more and can hold for the next 3 years.