The Anti-Portfolio

Update:

25% of folio churned, with 2 full exits and 8 fresh additions.

Trying to change the theme, it’s been good years recently but have to stop pretending to be a serious investor size now offers comfort to take risk more. Missed so many sectors, pipes, cables, rail, defence, EMS, PSU so on. A more diverse bet would likely pick up some of these early which can be pyramid on up or milked occasionally but position kept (since sell triggers often an up swing ). Maybe results overall wouldn’t be much different, this diversity bug bites me every other year, and then I slowly consolidate the winners.

Some small caps reach a point of inflexion where even though their exponential profit graph flattens but real long term strength appears. For not so agile investor, it can be a point of entry. Indian manufacturing exports are booming, with true domestic value addition like auto.

Added Sharda motors, it’s supplying mainly emissions control systems with one of largest market share in India and now started exports to US, bit slowly, decent value buy, tie-up with kinetic for some BMS etc.

Added Satin credit since interested in micro finance nbfc and ujjivan seems to be moving away from the sector 🤷🏽‍♂

Added E2E which is selling cloud infra, GPU focus with growth likely due to AI.

Added Ceinsys which is doing geospatial studies and recently took over auto design company based in US. Maybe just superficially cheap.

Also added Shilchar which is making transformers with exports growing, new capacity under construction, 1 more year wait required with max capacity reached. Transformers shortage globally, scaling production may take 5 years approx.

Added All E tech which is just Microsoft solutions provider but apparently it’s in a sweet spot to grow.

Added Beta drugs oncology drugs maker, with exports to developing countries mainly, doing well in India also, addition of dermatology products recently.

Added Roto pumps which is making non centrifugal pumps, major exports, growing faster due to China+1 and Europe+1 theme. Looks like they are expanding capacity.

Fully exited Redtape and Best Agro.
I don’t understand much about fashion brands

Reduced Kilpest and Ujjivan financial by half.

Also reduced from Gujarat Themis, Shivalik bimetal, KPI green, RBL, Tinna in that order. Kilpest doesn’t seem to have the strength to grow that fast and my position was about 10% of folio, bit large, with 350 average buy. Gujarat Themis is showing slow progress in capacity addition, one year more for sales to start. Shivalik bimetal capacity rampup will take time depending on global macros, electronics sales, ev growth story, 30% cagr for few years is mostly priced in. Rest booked had grown 3x and needed diversity IMO. Best agro was loss booking for saving taxes. Also total holdings are 19 now, bit large but then I don’t study that well to make concentrated bets! My effort is to follow GARP strategy

All new positions are roughly equal size, each about 4% of folio