Currently I am betting on the following stocks.
DMART. Growth rate is 45-65%. PEG ratio: 2.5. Money allocated: 17%. I think it will continue to do well because it is the only profitable retailer. I think D-Mart will become India’s number one company by market cap in the next 10yrs also I think R.K.Damani will become the richest indian. Moat of DMART is that they own the shops and don’t have to pay the rent. Now the shops which are they opening, few of them are on lease but they are doing this just to grow a bit faster.
DHFL. Growth rate 20% plus. Money allocated: 16.5%. Housing as a whole will be doing well over the years. It will lead the bull market from the front. Asset liability mismatch can help HFC’s make more money.
KRBL. Money allocated: 11.5%. FMCG companies are the best. During 2008 crisis FMCG did well in comparison to other sectors. KRBL is a market leader and I strictly believe in betting on the market leaders in a sector which is at a nascent stage.
Gruh Finance. Money allocated: 11.5%. Growth rate 20% plus. It is part of HDFC group. ROE is highest amongst all the BFSI companies not just the HFC’s.
Federal Bank. Money allocated: 10%. Moat - Value migration. PSU banks market share would come down from 70% to 50% and Private banks market share would go up from 30% to 50% that is what Uday Kotak said recently. I think federal bank has tail winds which will help them do well.
Kajaria Ceramics. Money allocated: 9%. It is a market leader in a nascent sector. If housing boom happens then tiles has to do well.
Ajanta Pharma. Money allocated: 8.7%. It is a contrarian bet. Value migration is happening in the pharmaceutical companies. Work is moving to India because cost of production is less in India. Also pharmaceutical companies can grow faster when they become big. e.g Sunpharma’s growth rate was proportional to the size of the company.
Vakrangee. Current allocation 2.3%. I as a retail investor and with limited contacts wasn’t aware about what was happening in the company. I think it has good fundamentals not sure about rest of the things.
Other stocks which I have are TTK Prestige, Nilkamal , HSIL and Can Fin Homes.
I have mentioned the weightage in individual stocks because returns for same portfolio differ with the % allocation to a particular company.
About Me : I live and breathe stock markets. My portfolio is in public domain. See the pinned post on my twitter timeline. D-MART is my favourite stock. Follow me on twitter - Ronak Sanghvi (@ronaksanghvi123) | Twitter (https://twitter.com/ronaksanghvi123).
