It certainly is a roller coaster ride for most. In case of RBM Infra I was sitting on 100% profit and due to no updatea and sub par results I went into losses.
I have some wealth destroying cases in small caps and mid caps (I was hit both by 2018 and 2020 and I was a kid back then) (See my rationale to go to SME is flawed but as a kid you want some revenge buying and you go do random things when you see every penny cracking badly, the only plus point in my case was that I was told repeatedly to never do F&O unless you are qualified or experienced) that I started to believe that big businesses cannot be run by corporates; like if promoter holding is below 20% why is he/she still in the business and other useless stuff. So I saw high % holding shares and there I encounteres my first SME.
Normally what happens is that these shares give high returns but very fragile. They will be the first to fall like anything. I prefer fundamentally sound companies only (Kotyark and PNGS Gargi are the only ones who were expensive at the time of buying). My PF was struggling in Dec 22. Then in Jan 23 it zoomed ahead and then long consolidation of 4 months occured and I went into losses after 18 months. Excellent results in more than half ofy PF and recent euphoria like rally again led to good gains which went dowhill 12th Sep onwards. I had my best streak of 0.8-1% gains for 9 straight days (25th Aug – 4/5 Sep) and also biggest fall (12th Sep).
You have to be very cautious in companies. One bad thing and all gains are wiped.
Cosmic Crf posted court matter of 11 cr which was recorded as contingent liability. Share went from 310 to 230. (Got exit at 289)
Similarly Aurdis was 260 when excise department notice arrived of 143 cr (mcap of 200 cr). Share went straight to 190.
Holding good companies is the only comfort.
I currently hold very few shares of KMEW at the moment (I sold major chunk at 100% profit) whose cost is 49 rs against cmp of 1500.
I once briefly reviewed every listed SME company (My belief was that if mgmt is strong, valuation are fair/below fair, sector is decent and they have capacity to grow then there is less harm in giving a shot, though it can backfire) and after reviewing shortlisted 5-6 companies and invested in 4 of them. Of 4, 1 is at cost, 1 at 20% gains, 1 at 50% gains and Pngs gargi 150% gains.
I usually try to not get FOMO. It is deadly and useless strategy in broad market but a sure shot disaster in SMEs. I purchased Cargosol Logistics in Fomo and exited recently at 45% loss (the sector was at peak when I invested and the result was a disaster leading to 20% lower circuit).
The experience varies from case to case but good companies will do good whethet it is SME or not. You can see Veto, KPI, Gensol, KPEL, Ksolves, E2E, Ice make, etc. who were Sme migrated to main and did well.
I am cutting my SME portfolio bit by bit and switching to mutual fund and small caps. My mutual fund exposure was 1.8% when I posted my first message. It is now 2.5%. I plan to reach mutual fund to 20%. I also bought SGB recently. My aim is to invest non-actively and so will cut my SME exposure to 50-55% in 1-2 years. I definitely will not leave SMEs because of the profits it gave me. Luck plays more role in SMEs. (Mainly after reading on VP I realised that on value investing I might be on right path but the stock category I choose is not)
Several sentences of mine might be repeated but again I am a newbie turning into slight Amateur now and my vocabulary is limited and so are my experiences.
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