I feel companies in Banking/Finance sectors are somewhat under valued. I also feel Dr Reddys as a value investing opportunity. However, I am seriously wondering why these companies remain undervalued in these heated times.

Dr Reddy:

HDFC:

@Pranav_Valueinvestor what’s your averaging price of AGI Greenpac? What % of portfolio allocated?

I have been invested and due to last 5 successive RED weeks, I was thinking if stock has lost momentum and entered stage 3.

Thanks for the response. Abrfl i have looked at since the pandemic but somehow it never has the consistency in growth or operational excellence that makes it a steady performer. Inconsistent direction of management, a constant M&A plan that has not given outsized benefits. Would love your outlook on what works here or what are the triggers that would help it work in future,

NH, i agree with you is a sweet spot with fantastic and disciplined founder, Have not checked it closely but seems will have to do so. Thanks for this.

Today, I want to share a few thoughts on how churn impacts overall portfolio returns (at least in my case).

This graph compares what happens if Rs 100 is invested in my portfolio from 2019 onwards (5y return cycle). In comparison, the portfolio has returned better than NIFTY 50 but has under-performed NIFTY 500 which is my benchmark index.

Below is my portfolio beta over the same time horizon as well (avg beta remains at 0.86 which I guess is decent)

Now I want to present the curious case of June 2022. In June 2022, I decided to sell a portion of my stock portfolio to move to cash. This was a mistake since I didn’t follow my investing principles and panic-sold. And then re-entered again around Nov 2022 in the same stocks which I still hold today.

BIG MISTAKE. Here’s how that decision impacted my overall returns:

tl;dr I lost 4.3% of my annualized returns due to this mistake (difference between low teens vs high teens)

To summarize my lessons:

• Don’t sell due to market volatility unless the fundamental yardsticks of business have deteriorated
• Probability of selling now to buy at lower prices later has a very low success rate
• Market volatility is a feature, not a bug

Any thoughts here?

Hi Vivek, thank you so much for sharing the detailed information about the company and market. Can you please share some more information about it’s current work order book.