Portfolio Summary 1.0

05Sep10

I am happy with the performance of most of these companies in my portfolio. I intend to sell Gujarat Reclaim and Patels Airtemp once they reach their intrinsic value which I feel is around Rs 140-160 for Patels Airtemp and ~2000 Rs for Gujarat Reclaim. Gujarat Reclaim was a borrowed idea from http://www.dalaal-street.com.

I am reasonably confident that Vinati Organics, Astral Polylinks, Cera Sanitaryware and Omnitech Infosolutions should be able to increase their intrinsic value by 15-20% yoy over a 3 year time period. I unfortunately could not increase my position size in 3/4 of these companies since the prices shot up in August. I have a full position only in Vinati Organics now. Let us see how they end up performing.

According to me, Peninsula Land seems to be a good company which has been punished due to the public’s distaste towards real estate. I am -15% on it!! I intend to hold it for sometime and see how the company performs (not the stock).

“Others” is Noida Toll Bridge  which I invested in after reading Prof Bakshi’s analysis. Intend to hold it till it comes close to intrinsic value.

I exited Ador Fontech fully at ~285-290 Rs from the ~20o Rs at which I bought it.  My estimate of intrinsic value was 300-320 Rs.

I had bought Esab India at 540 at a PE of ~11 but ended up tripling my position at 590 Rs to which it had shot up very soon. I tripled my position hoping the run would continue. It finally went to 575 Rs and I had to exit. Its fair value was 575-600 Rs then. Learnt the first lesson of “Do not speculate”. 🙂

Present: I am unable to find many obvious bargains in the present market conditions.  Getting a monthly salary increases the pressure to invest regularly since the savings pretty soon becomes large and sits idle at 3.5% returns. There are two things which I plan to do:

-> Create larger investment positions than what I have been doing (I regret taking smaller positions in many of my investments!)

-> Search for ideas not based on the money in bank but based on whether ideas exist! Simple, but not easy. All of us know that the pressure to invest will lead to mediocre returns in the long run.  3.5% return is better than -ve returns!!

Long list of companies which I want to look at:

J Kumar Infra Projects

Nava Bharat Ventures

WimPlast

Banco

Balkrishna

Dhanuka Agritech

Recommendations from other value investors:

FDC (valueinvestorindia)

Pondy Oxide (www.dalaal-street.com)

Are there any corporate governance issues in the list of companies which I am planning to look at? Or anything good amongst those? Any other interesting ideas?

PS: The nice screenshot of portfolio allocation is from the software MProfit recommended by tipblog.in

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2 Responses to “Portfolio Summary 1.0”

  1. Hi,

    Happy to see that Gujarat Reclaim is one of your top holdings. I agree its a very good long term pick.

    Do read up on Balkrishna Ind, I feel its a great long term bet.

    Regards,
    Ayush

    PS: Our website has been mentioned as http://www.dalaal-street.in instead of http://www.dalaal-street.com. Thanks for the credit.

  2. Hi Ayush,

    Thanks for the reply. GR is a good/great pick! I was lucky to buy it at 730 Rs. Would read up on Balkrishna Ind.

    Made the change to .com. 🙂

    Pradeep


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