Top 5 Picks – optimistically, for the next 50 years

Hi All,

My top 5 holdings are

1. NMDC – avg price 120 – Inspite of iron-ore prices at multi-year lows, I am hopeful Mr Market was generous with NMDC The sector looked attractive. Its ROCE, cash reserves, low P.E and P.B value, Graham number and >7% dividend looked attractive. I felt once the iron-ore cycle reverses, NMDC should do well.

2. Balmer Lawrie – avg price 310
   Somewhat similar to NMDC in ‘safety’ parameters. (ROCE, PE, cash reserves, dividend, multi-year low)

3. BEL – avg price 425
   This was more a ‘foresight’ pick more than ratio’s. A monopolistic company in defense sector looked appealing, esp at multi-year lows. I had also gone on a college industrial visit, and what I saw also had left a positive impression. No one could develop such technology on short notice.

4. Bata – avg price 540
   It seemed logical that demand for shoes in india would keep growing. And Bata looked to have better ratios (to me) than Relaxo and Liberty Shoes. I hope the P.E ratio i bought wasn’t too high.

5. MindTree – avg price 1260
   I was on the lookout for an mid-cap IT company, and MindTree looked to have the best ratios among competitors. The management also looks good. Glassdoor / my friends have given good opinions on work culture.

Other stocks i own are OFSS, AIA engineering, eClerx, CARE rating, Igarashi Motors, KSE Ltd and IOCL.

I was fortunate to get IOCL at its book value of 200. The govt has removed subsidy. Debt is reducing. IOCL has high moat, with big refineries. But i dont know if I should hold IOC for the next few decades, or switch it to Balmer Lawrie.

I’m a relatively risk averse investor as I dont have much time for tracking. I have just joined value pickr. I’ve owned mid-cap mutual funds / ELSS since 2010. Started with stocks in Aug 2013.

Guru’s / All, please give your suggestions @Donald @basumallick

Warm Regards,
S