| Company | Allocation | Thesis |
|---|---|---|
| Infosys | 12.66 | Largecap IT with high cashflows. Excellent track record with consitent dividend & Buybacks |
| HCL Tech | 11.79 | Largecap IT with better track record than many of its peers. Consistent dividends as well as growth in teens. |
| M&M | 8.58 | Dominant launches. Absolute star performer in SUV segment. |
| KNR Construction | 7.83 | One of better managed companies in one of toughest sectors. Sectoral tailwinds and lower valuations as well as proven track record. |
| Axis Bank | 7.57 | Private bank with attractive valuations and growth. |
| Power Grid | 7.43 | Monopoly in power distribution + attractive dividend yield + reasonable growth |
| Natco Pharma | 6.98 | Unique business model with strong balance sheet. Company is diversifying in other areas and markerts. |
| Sharda Cropchem | 6.68 | Agrochem recovery play. Asset light model with debt free balance sheet. |
| Kotak Bank | 6.47 | Consistent performer available at reasonable price. Has long runway for growth. Strong subsidiaries. |
| Bajaj Finance | 6.39 | Consistent performer which got de-rated significantly which made entry possible. |
| PSP Projects | 6.16 | Excellent execution record. Valuation comfort because of recent headwinds. |
| Narayana Hrudayalaya | 5.77 | Healthcare provider with good track record and long runway for growth |
| PI Industries | 5.68 | Consistent performer which finally gave valuation comfort for entry. |
Hi everyone,
Here is the quarterly portfolio update #1.
I have added some new companies to portfolio with some added insights.
There are two new added aspects of learning that I decided to add to the portfolio.
1. Mean Reversion
Added companies from beaten down sector such as Agro Chemicals with their margins reverting to long term average. I decided to buy companies on basis of their balance sheet as companies with less debt will be able to recover quickly than its peers. Added Sharda Cropchem and PI Industries with this theory in mind.
2. Basket Approach
In case of not being sure with which company to pick from any sector, buy multiple companies with small allocations to ride the tailwinds provided by sector. Added KNR Construction and PSP Projects from construction sector to allocate some investments in rising government spending in infrastructure sector.
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No sell transaction during the quarter.
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Increased holding in Infosys from previous post.
Rest of changes in allocation are based on market performance of the company.
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