In February, I sold PayTM at a 50% loss after the RBI imposed restrictions on Paytm Payments Bank Ltd (PPBL). I took advantage of market dips to accumulate Wockhardt Pharmaceuticals. In March, both SNOWMAN and NFL hit stop-losses due to setbacks in the small-cap indices. Following the 2024 elections, I initiated a small position in Natco Pharma. Throughout various market dips, I added small quantities to my positions in DMART, HBLPOWER, WPIL, NYKAA, DELHIVERY, KRSNAA, ITC, SIRCA, MANAPPURAM, and USHAMART. Overall, the portfolio is up by 15.35% in the past 6 months – my mutual fund/ETF basket (20% allocation) yielded a 19.5% net return, while my direct equity basket (80% allocation) achieved a 14.3% net return.
Symbol | Allocation (%) | Average Cost (₹) | Net Change (%) |
---|---|---|---|
A. Value | |||
WOCKPHARMA | 12.15 | 470.27 | 46.21 |
IRFC | 9.95 | 23.09 | 652.75 |
PHANTOMFX | 8.87 | 527.88 | -28.17 |
DMART | 7.36 | 3662.32 | 28.95 |
HBLPOWER | 6.51 | 107.58 | 365.45 |
TVSMOTOR | 6.15 | 672.38 | 251.65 |
WPIL | 5.56 | 3234.26 | 32.35 |
NYKAA | 5.51 | 169.78 | 4.01 |
DELHIVERY | 4.79 | 427.51 | -6.29 |
KRSNAA | 4.58 | 548.83 | 10.74 |
INFY | 4.28 | 1380.91 | 13.61 |
ITC | 3.54 | 311.58 | 36.45 |
KPITTECH | 3.19 | 1147.02 | 42.72 |
SIRCA | 2.50 | 339.92 | -5.54 |
B. Technical | |||
MANAPPURAM | 7.30 | 156.33 | 33.31 |
USHAMART | 4.29 | 355.39 | 9.27 |
SFL | 1.79 | 1214.11 | -24.77 |
NATCOPHARM | 1.67 | 1202.43 | -2.84 |
Outlook
The poor performance of my equity basket compared to my mutual funds is largely due to losses in PayTM and Phantom. While the decision to exit PayTM was straightforward, I am having a hard time to let go of Phantom because I have confidence in their business model and their growth potential. I anticipate increase in their US orders starting in Q2 or Q3 of FY25. However, the market is discounting the stock due to concerns about AI threats and outstanding receivables. The current valuations are very attractive, and I am torn between averaging down or exiting. When uncertain, my default approach is to do nothing.