Time for another updates. This is wrt the key stocks and overall portfolio construct.
My portfolio saw a lot of churn over the last quarter and generally for the year. Despite that I generated ~7% returns on my MF sized portfolio for FY23. I would consider this to be success given the context of low to negative market returns and year of sectoral rotation.
- Guj Fluorochem – Trimmed further to put in other opportunities. This is the largest holding for me at more than 10% of the portfolio. I am not comfortable with this large size for single stock and hence not adding now. However still putting with major quantities
- ICICI Bank – Trimmed some more qty. Generally getting out of Large/Mega caps and moving towards Mid/Small Caps
- Page Industries – Exited out of my 10+ year of holding finally. It may still do well but I would invest in other opportunities or once technicals suggest a buy
- Elecon Engg – No major change
- Karur Vysya Bank – No major change till FY end. However recently reduced it significantly to invest in other opportunities.
- RHI Magnesita – Exited due to price breakdown. I still like the company but there will be short/mid term overhang till they start to get synergies as well as Dalmia stake overhang is gone.
- Shaily Engg – Exited completely from the scrip. Costly mistake of neglecting technicals and being in love with the company. The growth visibility may be weak atleast for near term.
- Kennametal – Exited completely – Booked profit
- Rolex Rings – Reduced exposure earlier in the quarter but then rebuilt some of it. Much lower position right now but still remains.
- Varun Beverages – No major change
- JB Chem – No major change
12 Escorts – Exited out of the company
Given so many exits out of the top stocks, I have reinvested the proceeds in many different stocks with 1-2% Portfolio level allocation.
- Kirloskar Oil – I was having smaller position earlier which was increased over the last quarter. Cheap industrial stock trying for transformation and growth
- Pharma stocks – I made entry into couple of pharma names led by Zydus, Aurobindo, Glenmark and more recently Abbott – There seem to be some stabilization in US generic prices and some of these companies may be getting the benefit
- IT Stocks – Made entry into Sonata, Cyient and Cigniti besides KPIT. I was holding KPIT for some time but reduced it somewhat during the Recent brokerage report induced panic. However the stock recovered beautifully and i bought back most of the shares sold. It still remains one of the strongest IT stocks and with valuations may sustain with growth at premium and large cap not able to outperform
- Apar Industries – Recently bought at breakout. The growth story looks strong and market is re-rating it in quick time. Lets see if they can deliver the huge expectations being placed on them.
There are many other entry/exit that I have over the quarter and it would be difficult to talk about all of them. Some key tenets which are probably firmer in my mind now are:
A) Basically I am now developing into an investor who is focused on techno commercial aspect of the stock/company and trying to be in pockets of strength and getting out of stocks exhibiting weakness.
B) I try to be partial towards stocks in my area of understanding but don’t mind buying almost purely on technical also with smaller amounts.
C) I am focusing on companies breaking out to half-yearly/yearly high or ATH.
D) I am also not holding stocks below 200 DMA. That is where I exited Raymond(bought some again), RHI Magnesita, Escorts, though they recovered backup. Need to refine this process to understand general market decline Vs company specific decline.
Regards,
Nikhil
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