Nithin’s Portfolio

There is a change in my PF

As its over a 2-3 month journey to really test my hypothesis of sectoral rotation with 15% of capital – I fairly do understand this is not my cup of tea or I would need to be better at it (Mentally).

Here are the key mistake

• Macro factors contribute much to sector – its not just companies, even if the company gives excellent result, there needs to a good background music for the stocks to dance
• You need to know fundamental, triggers, technical, momentum across multiple sectors & companies and be on toes to find out what’s the driving triggers – well this is not my cup of tea.
• I did wait for as long as 1-2 months in SECTORAL PF just to see that my CORE PF is risen about 30% and I could not just wait to sit in SECTORAL PF to just throw pebble in the pond and wait for something to happen.
• There will be a inverse ratio between the sectors too my observation when Chemicals/Pharma are at all time High the Banks would be on the opposite end now since my CORE PF is more inclined towards sunrise sector (Chemical/Pharma) in next 2-3 quarters making new moves is not advisable.
• Now if you find the running tiger you can invest big and make handsome returns in short term – and your PF may look temporarily well : but this is just a mental tickle for short term, what people miss the most is long term compounding. For example short term noise such as HPL Power, BIRLA Cable, APAR had made good returns however if I had been in that area of noise then I would miss NEULAND
• Now why emphasize long term compounding? has this happen before? will this happen going ahead? how sure are we on the right boat?
  From most of the interview example : https://www.youtube.com/watch?v=8Y7BqPMIbA4 Uthpal & Ramesh Damani who are market veteran – their experience tells us that investing should be long term & secondly allocation.
• Why I did not invest in Banks?
  • Honest : I did not knew what was happening there

What did I Miss?

• Capital Goods
• Industry tools especially Mining

What I cannot afford to Miss?

• Pharma : Contract Manufacturing Opportunities
• Chemical – Specialty Chemical Opportunities mainly in Sulphur, Flavors & Fragrance, Agrochemical, Nutrition
• Banks especially – Small Finance Banks
• Consumption : Staple & Discretionary
• Telecommunication : Cloud | 5G
• Energy : Bio | Green Energy via Fluorination proxy
• Defense : Drone, Radar & Sonar
• IT sector : SAAS, Data Engineering especially Cloud, ERP Solutions on Cloud.
• Finance : I don’t know who are good here
• Railway : Exited HBL Power due to valuation :
• Fluorochem : Multiple applications
• Real Estate theme via – Home Improvement

Any themes that am missing here?

Here is the current snapshot of my PF

Owning in Family PF :

Sectoral Weights

Next Planned Move : This will be not like a slice of cake – It can never be the case that as I mention so shall that it will happen but am keeping my mental notes here :

• I have allocated high towards Pharma as the total Pharma Index is on move, with LAURUS being on 43% weightage on my Portfolio – expecting the next quarter to be slightly better – if price takes off to about 70-80% from the current holding levels, I will gradually reduce it to 20%
• Expecting Fluorination & Specialty to do well after that – so will allocate more to it later on the run
• Banks usually one needs to concise about current NPA and needs a careful watch

Planning for SIP :

Consumption Staple :

• Patanjali

Fluorination :

• Fluorochem

Energy :

• Praj

Pharma :

• Syngene

5G Telecommunication | Cloud | Datacenter :

• Tatacommunication

Banks

• Equites | IDFC

Consumption Discretionary

• Tata Consumer

Things that am interested

Consumer Discretionary :

• Titan : Brand exclusivity
• Manorama for Shea Butter
• Tata Consumer
• Metro Brands
• Brand Concepts

Speciality Chemicals

• Aether
• Privi
• Fairchem

Large Banks

• HDFC

Insurance

• Star Health
• PBFintech