Key updates wrt the top 12-15 stocks in the Portfolio in 2 particular order
- Guj Fluorochem – Trimmed due to weak technical structure. However still putting with major quantities as dont want to be out of this opportunity. I hope the short term pain is not too long.
- ICICI Bank – Trimmed some qty. Moved to PSU banks
- Page Industries – Trimmed due to weak technicals
- Elecon Engg – No major change
- Karur Vysya Bank – No major change
- RHI Magnesita – No major change
- Shaily Engg – Trimmed. May reduce further given the guidance of lower visibility from IKEA for their products. Healthcare may still take 1 more year to give returns. In Hindsight, looks like I entered quite early in the scrip.
- Kennametal – Booked profit/ Reduced exposure significantly due to break in price. IT is richly valued and in will grow earnings in 10-15% range. So taking some profits off. Not in Top stocks now
- Rolex Rings – Booked profits/Reduced exposure. While mangement is confident of 20% + growth, the actual growth may be lower. Not in top stocks now.
- Varun Beverages – No major change
- JB Chem – No major change
12 Escorts – No major change
With the exit of Kennametal and Rolex from top stocks, stocks that have come in top league are
1, Karnataka bank (3% div yield, turnaround , Expected net negative slippages(recoveries from provision) and cheap as for all banks) - Federal Bank – Reasonable mid sized bank – May grow in line with earnings. Any merger etc may lead to more upsides
- Raymond – The stock has moved well becoming Top 15 position for me. It is a the cheapest and one of strongest brands available. It has been held back because of promoter CG issues and no clear focus on profitability. However, over the last year, they have been making the right noises and implementing things (Debt reduction, simplification of structure, New top managemen and possible promoter alignment ). There is still lot of value in the company coming from engineering business, their Consumer business and they are looking to monetize it. If anything happens here , it may still work out well.
- PSU Bank/Financial basket – Primarily led by BOB and Canara Bank with some SBI, REC etc. There might be still room for another 20-25% + from this basket over the next 4-6 months.
Besides this, I have moved out of my gold bonds (SGB) and squirrelling away some cash to build some buffer for any eventuality.
Regards,
Nikhil
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