As mentioned in earlier blog posts also, we have been seller of many of our stocks like Adani enterprise, Rain industries (Which now is multi bagger, though we have small holding left and will be initiating sell soon), Westlife development etc. (Mostly small and Mid-caps) and buyers of Reliance, Tata motors, Jubilant food works and Adlabs entertainment.
Now after many months we are again churning some of our stocks. This week we have sold our holdings in Jubilant food works. We have completely exited our positions in Dominos as we feel now the valuations are over stretched and upside could be capped with more downside risk. Also we have sold our positions in Reliance Industries. We had initiated buy at 3 lakh crore Market cap (In fact this blog started after this buy only and reliance was our first recommendation) and now at 6 lakh crore we feel for the time being we could be out of reliance. Also Airtel and Reliance are fighting and we had an eye on Airtel but missed the rally. Also Reliance has a potential to reach 10 Lakh crore but then that also provides only 100% appreciation and it may take longer then we anticipate.
So, as of now All our major investments are in Tata Motors, Adlabs entertainment and now we have added a new stock Lupin Pharmaceuticals.
Lupin Pharmaceuticals – This is Only a contra call as we feel limited downside and everyone is negative on pharma in general. So again with the philosophy “Buy when everyone is selling”, we have bought Lupin. Also we feel management is really good and this could be good long term investment.
Other small investments—We have added some infrastructure names in our portfolio, as we feel India needs an exponential growth in Infrastructure and the stocks have bottomed out. We have bought stocks in small numbers as a bunch with names including NCC, Ahluwalia contracts and Action construction equipment’s. Overall small part of our portfolio.
Some thoughts on Automobiles batteries theme —
We are studying the battery space for long and seeing the way Indians are buying automobiles, we see lot of value in this space. Now basically there are two major players in this i.e. Exide and Amaraja Batteries. These two have around 90 % share in new batteries and around 60% in replacement market.
So, there is lot of competition between the two and some years back Amaraja has taken lot of market share from Exide. So who ever move fast will have more advantage and the two will continue to fight. Now our thought is its duopoly.
We are still studying the complete business but if you see last decade performance, both the companies have been exceptional good. Good CGAR in terms of revenue, bottom line, EPS etc. It seems both have good established businesses and who ever will be more innovative will get the bigger pie. Also the market itself is exploding and in next two three years will be double the size. Our take is to invest in the theme and buy both the stocks which are also at bottom end of their valuations. We are still not invested, but this space over all remains an area of very deep interest.
MOST NASDAQ 100 ETF—
We have been admirer of Apple (Who is not), Amazon, Titter and Facebook for a long time. But it’s not possible to invest in these stocks (We wish we could if you know how much they have rallied.) directly.
But, there is NASDAQ ETF by Motilal Oswal and if you see its portfolio its really interesting. 10% is apple, and then there is google and amazon. We think this is the best way to invest in the Nasdaq stocks.
Also,its NAV is 400 rs and its available at a price of rs. 370 . So we have lot of profits ploughed in this ETF.
Portfolio of MOST NASDAQ 100 ETF–
|Alphabet INC-Class C||3.20||4.85|
|Alphabet INC-Class A||2.78||4.22|
So as of now our portfolio stands as
MOST- NASDAQ 100 ETF
May be we will be sticking to this portfolio for some months before are next review.