Please advise on the following portfolio

Kindly advise on the following portfolio:

1.Capital first
2.Sri Kalahasti pipes
3.Vadilal industries
4.Visaka industries
5.Larsen
6.TCI
7.TV18
8.Hinduja Ventures
9.Tech Mahindra
10.Sudarshan chemicals

Have i covered all the sectors? I plan to add Bajaj corp instead of Vadilal and also planning for Indusind.

Please guide.

 

Why you have missed out Pharma sector. There is not single Pharma stock in entire portfolio. I suggest Granules, JB Chem, Shilpa, NATCO etc. All Pharma Cos have good RoE, good management, low debt only risk is FDA but if you buy basket you are safe.

How much % you have allocated to every sector and stock. Can you give %.

Bajaj Corp is v. good stock with high RoE, low debt and good products in Almond Oil and No Marks. Valuations is reasonable compared other FMCG stocks. Risk of disruption by Patanjali is there.

Such stocks like Bajaj Corp are good compounding stocks for churn of 15-20% CAGR.

Larsen is big cap stock. No multibagger return will come from it because of size of m.cap. Better go for mid-cap blue chip infra stock like KNR or Sadbhav Engineering IMHO. But if you want stability in portfolio Larsen is OK but returns may be low.

 

I forgot to mention I have Aurobindo pharma in my list and also Coromandel international.

The allocation is as follows:

1.Capital first------------50 units at 558Rs
2.Sri Kalahasti pipes----110 units at 255Rs.
3.Vadilal industries-------110 units at 626Rs.
4.Visaka industries-------150 units at 150Rs.
5.Larsen--------------------36 units at 1477Rs.
6.TCI------------------------100 units at 303Rs.
7.TV18-----------------------1000 units at 41.90
8.Hinduja Ventures-----------97 units at 458
9.Tech Mahindra--------------100 units at 535
10.Sudarshan chemicals--------50 units at 154
11.Aurobindo----------------------60 units at 780

I sometimes feel I have allocated less to more better stocks and more to inferior ones.

Regards,
Nilesh

 

Both are v. good stocks. Quality of management is v. good and track record is also there.

I think portfolio overall is good. I am not comfortable with Visaka because of Asbestos ban effect on it. What is story of Hinduja Ventures? Is there trigger in it? I suggest more load to CAPF, TCI, TV 18, Sudarshan because there are good midcap stocks with good track record and reasonable valuations. Instead of L&T, Visaka, Tech Mahindra.

 

Also get into any of the NBFC's like DHFL or Repco..

 

Also try to add one healthcare stock. Max Healthcare is about to list, maybe you can move from TM/HV to Max Healthcare. Also look at textile companies like Nitin spinners, Sutlej textiles etc.

 

Srouta,Dinesh,Ravikumar what are your views on Voltamp?

Kindly share your views.

Nilesh

 

Voltamp is very good quality stock which will benefit from Govt reform of power sector and thrust on electrification of villages.

Co has shown good results with revenue increase from Rs. 169.95 crore to Rs. 203.90 crore. Profit has shot up from Rs. 12.18 crore to Rs. 19.21 crore. Co is debt free with zero debt.

Income Statement

Standalone Mar'16 Dec'15 Sep'15 Jun'15
Net Sales 203.90 139.53 132.77 87.11
Other Income 10.38 6.31 5.22 6.39
PBDIT 18.29 11.15 5.50 2.48
Net Profit 19.21 11.56 6.78 6.43

Balance Sheet

Mar'15 (In Rs Cr)

Total Share Capital 10.12
Net Worth 440.82
Total Debt 0.00
Net Block 41.10
Investments 210.65
Total Assets 440.82

Stock is at PE of 18x which is ok for growth prospects from Govt reform of power sector and thrust on electrification of villages.

 

So is a Buy at current levels or wait for tomorrow's outcome and get decent price?

 

Timing of market is not possible IMHO. If you are convinced on fundamental go for SIP purchase mode.

I found good report on Voltamp by Kotak:

Voltamp reported vastly improved set of quarterly numbers as gains in EBITDA margins continued leading to reported profits exceeding our forecasts. We continue to be positive on the company on account of improving profit growth and a strong balance sheet.

The stock is valued at 11.9x FY18 earnings, which we believe offers upside potential given robust forecast earnings of 25% CAGR between FY16-18. Voltamp is one of the best managed companies in the transformer space. Although the near-term outlook on transformer demand is subdued, we see good potential in the medium term aided by 1) Solar Power farms and 2) Implementation of "UDAY" scheme for state power discoms. We see immense headroom for margins to inch up from current levels.

We value the stock at 14x FY18 earnings, thus arriving at a revised target price of Rs 950 (prior target of Rs 939)