Thanks for taking the efforts to reply to my posts. I will explain all the points one by one.
Firstly, all the largecap names like ICICI Bank, HDFC Bank, LnT, M&M and Wipro are the stocks that I would like to own from the Nifty Index. I don’t buy ETFs since, I like to pick my own stocks. Also, except for M&M and HDFC Bank, I have accumulated all other stocks during the covid crash so I am anyways sitting on huge gains and I don’t intent to cash on them since they are fundamentally good stocks which I bought at lower levels.
Now your question about banks. If you have noticed, in last 18 months, say from the onset of second wave in India, ICICI has given more than 60% returns and also also 2 dividends in between while HDFC has given negative returns in the same period, including any dividends if any. I agree that after the merger, HDFC will have major growth opportunities given their huge customer base but I believe this won’t happen in next 5 years. So, having 2 banks, is only beneficial since periodic outperformance of each bank will benefit you.
Now Vguard has has good market share is stabilizer sector which I believe will be a huge growth opportunity given the shift towards premium appliances and increasing use of high voltage products in our day to day life. So, Vguard is a pure FMEG play, where as KEI has not FMEGs expect their home wiring cable business. My hypothesis behind buying KEI, is the requirement for high voltage cables for building transmission lines, charging infrastructure. The growth expected in this segment for next few years is a minimum 10% CAGR which is beneficial for a company like KEI. So my thesis for these 2 stocks are different and hence I own both of them.
Now all the FMCG names I was able to accumulate at lower levels in the last 6 months when FMCG companies were facing margin pressure and were quite beaten down. The capital gains are amazing but the dividend yield on my investments in FMCG are higher than the normal levels since my buying price is very low. And as for D-mart, I feel the need for such stores are much required in India adn since Indians love discounts, we will keep going to Dmart. Also their E-commerce business will help improve their margins for the same products.
As for Wipro, I had bought it at 270ish levels in September 2020 and since then the growth has been amazing. Yes, the recent negatives are a bit concerning but I feel the companies will manage to sort this problem. I also plan on booking profits in Wipro once the stocks rebound and buy TCS, INFY, etc to diversify into the whole IT space. As for KPIT, its a really small company so I am not comfortable in investing more into KPIT than a largecap stock like Wipro, TCS or INFY. But I am also very optimistic of the business they are in and hence I will keep adding more of KPIT going forward.
I don’t understand the QSR space and all the other company’s you mentioned. IEX and Tata Power are for the renewable sector growth in our country and also the growth for charging infrastructure which will require an intensive management system and this business can be a good cash flow business. And I guess consumption discretionary products you mentioned, are always bought with a card. No one walks with that kind of cash in hand. So I believe SBI Cards has good growth opportunity, even with the onset of UPI. Metropolis is my bet on the growing diagnostic space, even though there are many entrants, I choose to be with metropolis. Angelone is my bet on increasing trading activities in India. Their client base is majority of experienced traders so their profitability is not affected a lot incase of a downturn and if one thinks market will go up in the long term, I think one has to bet on these stocks. Also the dividends for Angel are quite impressive. Deepak Nitrite is obviously a chemical play which I believe will grow steadily for years, given the government focus on domestic sourcing and reducing imports.
I hope this helps.
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