Which companies are under radar right now for average up or investment in smallcap space?
Posts tagged Value Pickr
Vedant Fashions (Manyavar) – Niche Branded Retail (26-01-2024)
I’m not disheartened with latest no…management I think doing the best they can…sometimes market dynamics tests even big businesses patience…titan I remember has also gone trough long hiatus in its stellar journey…what matter me is just management with leading brand where consumers are upwardly mobile…not many consumer businesses are available having gross margin of around 67%…hope south India campaign with Ram Charan brand ambassador works out…my logic is simple…remain with leading brand in every sector…
disc. invested,vested, 3% portfolio.
Rohit’s Portfolio : Requesting Feedback (26-01-2024)
As always, this thread is more of a tracker for myself and open for reviews from other people. Key takeaway over the last month has been to:
a. Trim position size if any adverse news on top holdings – e.g., Polycab. Was late to cut the position as it meant selling my position I had built at ~600. Lost quite a bit of gains
b. Track trends more closely on Social Media and follow-up with technical and fundamental analysis. e.g., SW Solar has been a big win, but at the same time lost out on other railway stocks (could have used a sharp SL for quick entry and exit) -this adds to overall portfolio XIRR
Have entered a few new positions (Tanla, Equitas SFB etc.) and do expect to churn out underperformers post concalls to reduce number of stocks e.g., Mayur Uniquoters, Globus Spirits.
Portfolio returns in Jan have been just 1%, in-line with small and mid-cap indices due to blow-up of my large 10% Polycab position but still delighted that I was diversified enough (Neuland, SW Solar, Tata Power) that I escaped damage at portfolio level.
On a overall portfolio level still at a healthy cash level (~30%) and will move money to India/US to BTFD 
| Category | Symbol | Allocation% | PnL% |
|---|---|---|---|
| Long-Term | TATAPOWER | 6.63% | 58.5% |
| NEULANDLAB | 6.41% | 105.3% | |
| POLYCAB | 5.69% | 96.0% | |
| SWSOLAR | 5.31% | 48.7% | |
| NCC | 5.21% | 27.8% | |
| FLUOROCHEM | 5.16% | 22.5% | |
| ICICIBANK | 4.68% | 5.5% | |
| NH | 4.64% | 54.3% | |
| APLAPOLLO | 4.38% | 15.6% | |
| RACLGEAR | 4.36% | 78.3% | |
| GRAVITA | 4.12% | 43.3% | |
| AARTIIND | 4.04% | 13.8% | |
| MASTEK | 3.16% | 1.4% | |
| RELIANCE | 3.05% | 14.2% | |
| TIPSINDLTD | 2.94% | 9.1% | |
| KPITTECH | 2.69% | 104.9% | |
| JBCHEPHARM | 2.17% | 23.2% | |
| IEX | 2.07% | -13.0% | |
| MAYURUNIQ | 1.89% | 2.6% | |
| EQUITASBNK | 1.86% | -3.8% | |
| PRICOLLTD | 1.79% | 8.7% | |
| INTELLECT | 1.64% | 9.9% | |
| TANLA | 1.45% | -7.6% | |
| SBCL | 1.42% | 8.4% | |
| LAURUSLABS | 0.93% | -6.5% | |
| Positional | DEEPAKFERT | 0.59% | -10.7% |
| AVANTIFEED | 1.81% | 11.8% | |
| PRAKASH | 2.37% | 21.9% | |
| COSMOFIRST | 0.24% | -3.8% | |
| Exit | GLOBUSSPR | 2.14% | -18.7% |
| SGBSEP27-GB | 0.62% | 63.2% | |
| Other | Cash | 4.55% | N.A |
HDFC Bank- we understand your world (26-01-2024)
HDFC bank minimum balance charges and high service charges will act as a hinderance in mobilising new accounts in rural and semi urban areas…
Zero balance account and minimum service charges had impacted profitability of PSU Banks and because of which PSU Banks over a period of time have done underperformance , however now all these expenses are well adjusted in their cost structure and they are now comfortably place in terms of deposit mobilisation.
Mobilising deposit from rural areas will be challenge for HDFC Bank and may be their will be an under performacne due to additional expenses for a couple of years.
Investment strategy review (Long term) (26-01-2024)
Hi Tushar,
There are a few things that concern me but I would like to understand a few things before proceeding.
- How did you decide the allocation % as 17k / 13k? Why not 12k/18k -or- 10k/20k?
- Continuing along the same lines, how did you get the numbers of 6/4/3k for SIPs?
- You wrote
a. What is the objective here? What’s driving the need for safe investment?
b. What do you mean by safe here (zero volatility? low chance of capital erosion? else?)?
Imo, this could be a very contradictory statement. If looking for a safe investment then one needs to give up the return expectation. Further, if your largest allocation is looking for safety, you must have a reason. What’s the reason? What’s driving this? From the information you have shared, this part is not clear.
Further, this contradicts your entire approach. On one hand, there is something that is causing you to put ~55% of your PF (17/30k) in safe investments. On the other hand, you seem unconcerned in erasing 10% of PF (3/30k). It’s okay if you want to learn, but in that case, 3k can’t be considered as a part of the PF since you’re going to lose it (analogy: you invest in college tuition fees to learn but would you consider it as a part of PF?).
I am assuming your risk appetite is towards the lower end but you’ll need to clarify it. There are several ways to measure it and I suggest that you spend some time reading more here.
I am not a SEBI registered research analyst or an institution. I am very hesitant to comment on the selection of the funds. I do feel that for a risk-averse investor, there can be better spaces than small-cap funds but then again it’s very difficult to comment on anything without understanding your profile and needs that are driving your investments.
The allocation strategy imo should be very person-specific. One can start from a random strategy but with time, it could get very difficult to practice (and sometimes optimize it)
In general, there are several ways to allocate. The ones that I find easy to practice are:
- Goal-based
- Ambition based (I forgot the exact jargon here)
For goal-based, you first define the amount of capital you would need in the future and then back-calculate your investments making some realistic assumptions on the returns.
For ambition-based, the goal is to maximize returns. One doesn’t have a target in mind but looks to mix and match the best combination of his risk appetite and returns.
Disclaimer: I am not a SEBI registered research analyst or an institution. These are my personal views. My views keep on changing with learnings and time and I often go wrong.
My portfolio updates and investment journey (26-01-2024)
Thanks Mudit @Mudit.Kushalvardhan for your comments.
Mr Warren says we dont need to diversify if we understand the businesses very well. I am sure his intent is not to misguide. However, we can see that in his actual actions (partnership firm and Berkshire’s portfolio) he understands the risks so he never went with outsized positions as input, until unless it was a control situation or a rare occaision of Amex case.
In my personal context: all of the businesses/stocks I own I dont understand them in and out so I have 20+ stocks. Its better to say I dont know enough and plan that way.
@G_Sandeep Amex could not have been 40% of portfolio in 1963 as the partnership allowed up to 40% limit only from 1965. As per my estimates Amex was about 4-5 million bet on his net assets of 18 to 20 million so about 20-22% position. Later in year 3, i.e.1965 this bet went on to become 40% and thats why, I think, he amended the general rules of partenerhip in that year.
Also lets understand the rarity Warrent talks about:
As I mentioned earlier we hear from survivors only, lets look at the graveyard too. I would not have been writing here if, luckily, I was not able to sell my Arhisya stock (100% of my portfolio) just before it went down 80-90%. I did have Bajaj Finserv at 30% in 2017-2018 but it was a rather an outcome of its sheer perorfmance.
I understand that we may not reach on a conclusion for everyone as investing is personal and situational. Unfortunately thats the way investing is, there are no clear cut answers for everyone. I like to take path of lower resistance vs. a short cut with high resistance.
Neuland Laboratories Limited – Transformation towards niche APIs? (26-01-2024)
40 Years of Neuland – A Tribute to Our Beloved Chairman Dr. D.R. Rao
Management emphasizing that value systems & ethics are in core of Neuland Labs.
Mr Rao has ensure that these values are imbibed in the culture of his family and the Company. This gives a lot of confidence to the investors.
Vedant Fashions (Manyavar) – Niche Branded Retail (26-01-2024)
Philosophy of BAAP (Buy at Any Price) has always have frustration at the end ! Stock either stays at same price till earing catchup or correct it for reasonable price.
As per my assessment, company was having highest margins at lower base but when company switch into growth mode either margin get hit or sales will not grow…which is happening presently. Competition is also increasing from known brands in India. With aggressive stores expansion and premium retail exposure, it will be challenging to sustain margins in near future!
Apcotex Industries – monopoly in Synthetic Rubber? (26-01-2024)
As per con call they are not making even breakeven for Nitrile Rubber even for export market. This cycle ask us to consider Apcotex as pure commodity business without any pricing power! Does it reasonable to give such premium P/E for nature of the company!
I always respect management and its vision however unless they innovate some premium product, best jockey on seek hoarse will not do meracle for us
HDFC Bank- we understand your world (26-01-2024)
In Rural and Semi urabn areas, people still use to visit branch, they are not tech savvy and at the same time they do have fear of online fraud,so they don’t prefer technology.Apart from that old age people also don’t use technology to a great extent.