Ever since I posted my article on Midcap recommendations, I have been getting emails from a few readers asking for stock recommendations, mutual fund ideas, SIP investments etc. As it is practically impossible to answer all queries by email, I thought of making it simpler by publicly posting my stock portfolio in this post (which I hope to keep updating at least once in a quarter)
Note: Before attempting to invest in any of these stocks, I strongly urge you to read through the rest of this post – especially the Disclaimer section.
My Equity Portfolio
* Last updated on 5-December-2018
1. Long Term Basket (5+ Years)
* Last actions:
Added more ONGC, Entered M&M
Booked profit on Asian Paints, Aurobindo Pharma, Bajan Finaince, HCL Technologies, HUL
Exited Kotak Gold ETF completely
| Stock Name | Investment Horizon | Status |
| Lupin Ltd | Long Term | LOSS |
| Mahindra & Mahindra | Long Term | PROFIT |
| NMDC | Long Term | PROFIT |
| ONGC | Long Term | LOSS |
2. Medium Term Basket (6 Months to 5 Years)
(# Some of these stocks may be moved to Long Term basket later)
* Last action:
Entered HPCL and Karnataka Bank
| Stock Name | Investment Horizon | Status |
| HPCL | Long Term | LOSS |
| IDFC | Medium Term | LOSS |
| IDFC Bank | Medium Term | PROFIT |
| Karnataka Bank | Medium Term | PROFIT |
| Subex Ltd | Medium Term | LOSS |
3. Short Term – Swing Trade Basket (Few Days to Weeks)
* Last action:
Booked Profit on ITC, Entered DHFL, NTPC, Vakrangee
| Stock Name | Investment Horizon | Status |
| DHFL | Short Term | LOSS |
| NTPC | Short Term | LOSS |
| Vakrangee | Short Term | LOSS |
My Investor profile
I am retired Software professional who took an early retirement from the IT industry to pursue a few simpler interests in life. I have been an investor in the equity market for many years but stopped the same just about an year before my retirement due to change in risk profile. However, seeing the new majority government in action at the center (and my own need to build wealth post retirement), I decided to get back to the stock market again to ride the bull run. I intent to build a portfolio of 5-10 stocks in the coming weeks with special focus on mid caps with good valuation that I intent to keep from 6 months up to 5 years. At the same time, I plan to allocate a bigger chunk towards well known large caps and blue-chip companies with very long term view (5-25 years). There’s also some swing trade or short term positions that I hold from time to time.
By the way, direct equities form only about 20% of my overall portfolio due to my investment risk profile. I also do trading in equities once in a while but that’s more for fun. I am 99% an investor (and less of a trader) with medium to long term goals. I am also invested heavily in mutual funds (~30%) and that’s what is giving me real good returns from long term point of view. Having said that, I must say that I have the knack of picking the right stocks at the right time but since I exited them too early, I ended up having limited profits from stocks as compared to my funds. I plan to rectify this with my new approach of having buy-and-forget large/mid caps stocks in one basket, medium term picks in another and swing trade/short term picks in yet another as shown in the three tables here.
Disclaimer
The stocks listed here are actually part of my portfolio and it doesn’t necessarily mean a recommendation to your investment goals. Further, here in this forum, I will NOT be discussing why I bought certain stocks, when I bought/sold, target price etc. All financial details, disclosures, news and research reports of the stocks mentioned here are available on portals like Bombay Stock Exchange or Moneycontrol.com. Hence, you are requested to do your own research and adjudge the suitability of the stocks mentioned here for your kind of investments.
The long term portfolio mentioned here may not be of interest to many people who are in the look out of quick bucks from the stock market. However, some of the stocks mentioned in the short to medium term portfolio (second table) may interest some of you.
Further, I am not a qualified Financial Adviser or portfolio manager to help you with your investment needs. Any loss or gain that may be resulted from investing in the stocks mentioned here may not be attributed to me.
Good luck in your equity investments!
Dear ajith
Can you recommend me some online reliable paid service portal who post stock recommendation for long term investors?
I am 54 and interested in build a port folio which would give me outstanding return in terms of dividend and bonus. I am not much in favour of price appreciation, if that happens on indeed.
With this target I acquired 3 stocks namely ongc, itc and tcs using my gut feeling but without any research.
But now I want to take professional help to build up a serious portfolio with aforementioned target.
Thanks and regards.
Amit,
In fact, some of the stocks listed here in my LT portfolio are good dividend yield stocks with wealth accumulation targets. Having said that, if your aim is to get ONLY dividends and not growth or wealth building, then I suggest that you go with very good dividend yield equity funds.
The reason is that, even the best dividend paying stocks can give you only a yield of just about 2% to 3% as dividends while for good equity funds dividend option this goes up to 10% or 15%. This is due to the fact that companies need to continue to invest heavily on capex items while funds don’t need to 🙂
You may find good dividend yielding funds at portals like moneycontrol.com or valueresearchonline.com . If it is still stocks, then go for NTPC, Coal India, Hero Motorcorp or as you rightly picked ONGC too. TCS is not exactly a great dividend play. ITC is good but still not as good as the likes of NTPC or Coal India.
You may also take professional help in this aspect.
Hi Ajith,
Delighted to see a fellow (former) software pro in India retired early, and pursuing other interests. Our paths seem to have followed a very similar course.
I see that in your long term portfolio, you don’t have much of an export play. I have had a bigger exposure to Pharma (Sun Pharma) and IT (TCS, HCL Tech) in my portfolio, and in the Indian context, they seem to have had a very positive impact.
I believe that given the steady earnings growth of these two industries, having relatively minimum dependence on local factors, they might serve as a very good foil to some of your picks in case the growth expectations in the domestic economy are not quite met.
What are your thoughts on that ? I would love to get a contrarian view point.
Best !
Hey SL,
Thanks. As I mentioned in the post, I am still building this portfolio whenever the price of a certain scrip looks good. TCS and HCL Tech are definitely in my pick list from the IT pack. On the Pharma front, I plan to bet on Lupin. Let’s see how things go. Sun pharma has been doing exceptionally well, but I somehow I am unable to imagine the impact of Ranbaxy acquisition so just keeping it away for the time being.
I am just 31 year old and have recently started investing in stock by investing certain amount every month and I want to remain invested for longer duration. Could you give your opinion about my portfolio. I have provided a link for the same.
https://docs.google.com/spreadsheet/pub?key=0AuL00qMaBN0EdC1ycExnUmVqVmxvdWJSUTdoZ2E3QWc&single=true&gid=2&output=html
Anil,
Wish I had the time and ability to go through your long list of stocks and suggest any changes. All that I can tell you is the following abut systematic equity purchasing:
– Since you are doing it regularly and meant for long term, pick 70-80% of the stocks from large caps and the rest mid-caps
– Stick to 15-20 stock max for a systematic investment in equities.
– It’s good to stick with companies that have a clean balance sheet rather than looking at momentum or trading bets.
Good luck!
Ajith, great article, so insightful, and shows your interest in enhancing social awakening and to do selfless work !! Keep it up!
Thanks Nagesh. I am keeping this blog ad free for 10+ years now, mainly due to the reasons you highlighted.
Hi Ajith,
Good to see you. Nice article.
Cheers,
Jai
Sir,Notify me of new posts by email.
Ajit, u really helped me to get a clear idea about sip and investment
spotted very late
thank you
kr
Sir, thanks for posting good comments on buying stock for short to long term. Keep me posted of your valuable comments
ajit sir,
I wanted o know with the Brexit which stock to buy as tata group stocks have exposure. please advice and reply on my mail. thks adi
I exited Tata Motors (DVR), Motherson Sumi, Tata Steel etc from my portfolio. Still holds Bharat Forge. These stocks are likely to get affected by the fragile region. There may be Europe centric pharma stocks too that may be hit, and then travel-tourism related stocks.
Having said that, the real impact of Brexit may be felt only over the medium term in the next few months to couple of years. Hence, you may still get a better price on this stocks as exit points.
PS: The table still shows Tata Motors (DVR), need to edit it.
Dear Sir,
Please suggest some good small cap stock to buy for period of 6 month to 1 year. Hope your advice benefits to many peoples.
Regards//Hemant
Dear Ajith,
I have seen your post and impressed really. Would like to join and have an idea related to stock market. I am staying abroad. but would like to start share trading. I am in the Learning phase.
I shortlisted few stock for Long term prospective. Now the Bull is on the High Run tough I will not Prefer to put A single Penny. But if it’s Down I will prefer the Following for the Long Term Point of View.
1. Motherson Sumi
2. Jk Tyres
3. Apollo Tyres
4. Shilpi Cable
5. Kitex Garment
6. Rico Auto Industries
7. Marksons Pharma
8. Welspun India
9. Mintree Limited
10. Gujarat Papavav Port.
Also Please Suggest me how to choose the day to day scipt and Intraday. I knew It’s a Risky Game. but I am much interested in day to day trading as well.
Thanks and Regard’s
Abdul Latif Thakur
Don’t rely on Midcaps portfolio alone. Have a few performing large caps too. Bajaj Finance, Maruti, Lupin, Asian Paints, Pidilite etc are some good stocks to own on a SIP basis. Also, avoid too many from the same sector (e.g. Kitex and Welspun, Tyres). I haven’t studied the whole list you provided but I don’t prefer stocks like Marksans when very good companies like Aurobindo Pharma, Lupin etc are available at reasonable valuations.
Hi,
Can any body throw light on Mirza International’s shares for 5yrs prospect?
Thanks,
KN
It’s a slow growth company. Such companies are good to pick during deep down markets only and hold for a bull run. Just my opinion!
Sorry for late Thanks….
could you please throw opinion on GMR infra….book value is attractive now….i think, waiting for your comments.
I tend to avoid such stocks. A lot of analysts believe that GMR’s balance sheet ‘could be’ repaired but looking at their whopping debt (50,000 Cr), I would avoid it. Some smart players do trading bets on it but I wouldn’t put my money into it.
Thanks for the reply.
Dear Ajith,
would like to know about Welspun india and Future consumer Enterprise limited for long term prospect. I would like to invest for long term.
Kindly Give me advice in this regard’s
Thanks and Regard’s
Abdul Latif
Abdul Latif,
I do not track Future despite the recent news on consolidation. However, I have short term interest in Welspun and picked a small quantity at 48 last week despite warnings from most analysts. My hope is that in short term it makes some money BUT one needs to wait for clarity before buying Welspun for long term.
Dear Ajith,
I already add five Mutual Fund (SIP) Which you suggested before. Also start my portfolio with the following for long term prospect. Please have a look and let me know in case of Any change please.
1. RIL (Short Term basis)
2. Aurobindo Ph.
3. morepen lab.
3. KPIT (Added @130)
4. Subex
5. FCEL
6. Welspun india (Added @55)
7. Edelweise Fin. (Added @122)
8. Kwality
Please suugest any addition or deletion in current atmophere.
Thanks
RIL, Aurobindo look good to me of which Aurobindo is an excellent portfolio stock. Morepen, Edelweise, Kwality etc do not look fairly valued. Also, Kwality looks dubious to me since last few months. Welspun is a trading play now post the bad news. Subex, is a turnaround risky play and KPIT is a trading play for me.
While your long term plans are taken care of by the four or five good Mutual funds, you might want to add some good LT portfolio stocks too from my list communicated earlier.
Hi Ajit,
Season’s Greetings !
1. Why did you choose SBI as a long term especially going by the volatility it has shown in the past?
2. Do you see any multi-baggers in digital payment industry because of the economic changes (updates) ?
3. Planning to invest very long term in pharma especially Cipla and Sun, your thoughts ?
Thanks in avavce !
Rohit ( IT / mallu / wannabe to retire at 45)
Greetings to you as well Rohit.
1) SBI is sitting there in that list for historic reasons 🙂 Not a classic long term story any more (if you have read my recent post) but something that helps you tremendously if you average out on those troughs. Further, while private banks will eat into the PSU pie, it won’t be happening as fast in the case of SBI but yes, may be in couple of decades.
2) I doubt. The listed companies in that segment are all with poor financials.
3) Cipla is a pure long term stock pick although the RoE is not as much as some of its peers. But the beauty about Cipla is that it’s hardly affected by all those FDA fears that bigger players are fighting, as Cipla has significant solid base in domestic market as well. Sun Pharma seems to have a lot of issues with legal problems as well as FDA issues and while it’s the biggest player, I would avoid it. Further, some of the investments by its promoter recently is questionable. I would stick to Aurobindo and Lupin.
Thank You – I Will SIP Cipla and Aurobindo quarterly for next 5 years.
Do you have any thoughts or recommendations on education sector for real long term ?
Thanks – RT
Going by what happened to hypes like Everonn, Educomp, Treehouse Education etc in the past few years, I wouldn’t even touch this sector. Education is the most corrupt sector in our country 🙂 Perhaps, MT Educare in the listed stocks looks interesting. Unlisted entities like Byju’s etc have got plenty of PE funding but I am not sure how long these hypes will last.
What is your overview on the India chemical sector as of date? Is the ‘China’s loss = India’s gain’ theory completely factored in?
Any view on HSCL and Sudarshan Chem?
Looking forward…