Ronak’s Portfolio – building it slowly

As I mentioned earlier, I want to streamline all my investment this year and am trying to decide my strategy going forward.

At one end, the theory is that large caps have not performed well, and Nifty PE is 23. But on the other end, it is true that Nifty has given positive return for 8 straight years, and major companies in Nifty are not trading at cheap valuation.

keeping aside the overall index, if we try to take very quick sense check across key sectors and market cap, it does not appear anywhere in range where we can feel confident to invest.

For example starting with IT, If we look at IT in various categories, none looks reasonable at these valuations.

Similar case for FMCG

In Building material even if we ignore Asian paint, Pidilite or Astral other stocks such as Cera, Hindware, Apollo pipes, HIL are trading at higher than historic valuations.
Similar case for the likes of Polycab, Havells or QSR companies
Diagnosis players are trading at more than 60 PE
Even if we look at some overlooked sector such as logistic, it’s hardly trading anything cheap.
Not going into EMS sector at all.

Now I know PE is not the only way to conclude anything but it does give the direction.
There can be space in the market where still value is there but it is not easily available. Now either I am looking at all the stocks where story has been identified and hence I find everything costly or this time is for industrials so time for B2B where I do not have any edge.

For all the success stories we hear in the market the summary really is that the starting valuation was low and that clearly is not the case. I would like to swing my bat but when there is free hit.

So for now I am just thinking to pause my investment , not booking any profit but wait for the time when I feel confident.

In watchlist (mid and small cap) : Devyani, Westlife, Bikaji, Affle, Latentview, Cera, Carysil, Apcotex, LaOpala, Syngene, Dr lal

Meanwhile, I will keep following @ranvir , @harsh.beria93, @Investor_No_1 , @hitesh2710 and other VP members for ideas