Mudit’s Portfolio (Passively Active)

My reasons for selling : –

1. Hindustan Unilever : – Sales are growing at 10-12%…profit at 13-14% and stock performance is pathetic at 7% in last 5 years. even if it revert to mean in next 1-2 years, still its long term returns are below even our normal Index. It doesnt fit into a growing business definition. I am ware that 9 out of 10 households use their products. But its not fit to give 18-20% CAGR over next 1-2 decade. Just holding it because its household name, doesnt fit into my scheme of things.

2. DMART
   Celebrated Retailer with huge respect for promoter. But what are its numbers saying? Sales are growing fast, in last 5 years, almost triples. Net profit in last 5 years, almost 3 times, but stock performance has not been in line with its business performance. its barely double in last 5 years at CAGR of 17…and going forward with retailer competition increasing, dont know whats going to happen…Still I have not taken any final decision on this…Question Mark

3. Infosys
   In last 10 years, profit just tripled. Already given the reason.

4. Balkrishna Industries
   sales OK between 15 to 20% CAGR range but profit is pathetic 11% in 10 years and 7% in 5 years, ROE not crossing 20,Stock performance has been good…but since not backed by business performance, very high chance of dismal performance going forward

5. HDFC bank
   already reasons given.

6. Deepak Nitrate or Alkyl AMines ? one among them…still not sure

7. Laurus Labs
   already reasons given