My portfolio - Pl suggest modifications, if any.

Hello, my portfolio for your suggestion :
Axis Bk @ 535
Britannia @ 2430
CESC@600
Dish TV@71
GRUH Fin@ 270
IDFC@ 131
Info Edge(Naukri)@ 795
ITC@ 283
L&T Fin@ 66
OM Metals Infra@ 39
Pidilite@ 576
Sun Pharma@ 576
Talwalkars BVF@ 331
Yes Bk@ 380

Kindly share your views on my portfolio.


Regards.

 

Hi,

I think you have a pretty much balanced portfolio. So in what proportions is your money split b/n these companies ?

In banking space, I too like Axis Bank & Yes Bank. You have bought Yes Bank at very good price )) Axis Bank looks an expensive buy. The historical PB has been 2.3 which translates to a price of 425

In FMCG space, Britannia is a very good buy. I believe you have bought it expensive. The historical PE has been around 30 and currently the company is clocking 50. Would suggest you to explore Marico.

In NBFC space, Gruh and L&T are look good. Here again, I think you have bought Gruh at an expensive price.PE <= 30 is what I will pay for it and this translates to a price of 180-190. Would suggest you to research HDFC, Dewan and Capital First

ITC, Sun Pharma & Pidilltie are good buys. Pidilltite has a historical PE of 30 and this translates to a price of Rs 300

Dish TV is too much dependent on factors outside the company's control - things like digitalization, govt. policy etc etc

 

@Meenakshi Razdan Thanks for your reply. My portfolio has 45% allocation in Banking and Finance as the interest rate cycle is moving downwards. I am considering buying Diwan HF or LIC HF but my GRUH holding is in a loss of 19%; should I book loss here?
I will hold ITC (and will add below 270) for long, say 10 years as I feel that a good story of diversified business may unfold in future and their Cig business will improve. (I had booked profit in Larsen & Toubro just few days back and will buy again as I believe there also a diversified biz story is unfolding),
OM Metal is a small cap with construction related business in Rajasthan. I bought it after I got a ref from Porinju veliyath's Twett. I hold a very small no of shares here.
Regards.

 

ITC is already at 52 week low, there is less chance to go to 270, better get the stock now rather it is late

 

ITC faces regulatory issues ... Already they are going down in volume growth of cigarettes which constitute the major sales and higher margin... So whether moving to other segments will
fetch the same margin which cigarette has fetched ?... If not, then what will be rationale to put our money in itc for longer term...

 

ITC can turnaround from its cigarette volume crisis by improving its FMCG business. Just tell me, do I need to add or sell some stocks from my portfolio on a rise?

 

It is always a good idea to book some amount of profits atleast upto the level to recover the cost of your capital invested and put that into other ideas. However if you are fundamentally bullish on your companies and believe that there is much more growth seen you can leave them.
Regarding your portfolio I would like to congratulate you on making a fine portfolio. All these are well known companies having good managements and can see reasonable growth ahead. I don't know much about Om metals so can't comment on that one.
Regarding adding some stock, I think you ca add more IT and pharma companies. You just have one in each sector so it might not be a bad idea to add 1-2 companies more either the large cap ones or quality mid caps ones depending on your risk profile. However don't rush to buy in and always see the valuations at which you are getting. Try buying them at a reasonable valuation. Good luck with your future investments.

Happy Investing