No Place to Hide!
When the setup of the battlefield is against you, there is no point of showing courage and lose. Rather, you need to find shelter and places to hide. The objective is to PROTECT YOURSELF...to flight another day!
The market has run up significantly in last year. The valuation has heated up and is now causing worry to deploy incremental money.
Because, one cannot risk not to participate in the market. In short, you have to stay in the market. Where to go?
PE
Nifty 50: 23.5
Nifty Midcap: 27.3
Nifty Smallcap: 28.4
It is said that the son of Ravaana, Indrajeet, had special abilities to hide behind the cloud and fight against the enemy.
I am in search of the cloud now!
P.S. I am currently making some changes in my mutual fund portfolio. More updates will follow!
When the setup of the battlefield is against you, there is no point of showing courage and lose. Rather, you need to find shelter and places to hide. The objective is to PROTECT YOURSELF...to flight another day!
The market has run up significantly in last year. The valuation has heated up and is now causing worry to deploy incremental money.
Because, one cannot risk not to participate in the market. In short, you have to stay in the market. Where to go?
PE
Nifty 50: 23.5
Nifty Midcap: 27.3
Nifty Smallcap: 28.4
It is said that the son of Ravaana, Indrajeet, had special abilities to hide behind the cloud and fight against the enemy.
I am in search of the cloud now!
P.S. I am currently making some changes in my mutual fund portfolio. More updates will follow!
Asian Paints
Revenue up by 7%
Expenses up by 4%
Profit up by 20%
(Q-o-Q)
Y-o-Y (this Q vs. Last Y Same Q.)
Revenue up by 5%
Expenses up by 1%
Profit up by 35%
Profit is driven by the low price of Raw Materials.
Operating Profit Margin (OPM)
This Q: 22.3%
Last Q: 20%
Last Year Same Q: 18.4%
Revenue up by 7%
Expenses up by 4%
Profit up by 20%
(Q-o-Q)
Y-o-Y (this Q vs. Last Y Same Q.)
Revenue up by 5%
Expenses up by 1%
Profit up by 35%
Profit is driven by the low price of Raw Materials.
Operating Profit Margin (OPM)
This Q: 22.3%
Last Q: 20%
Last Year Same Q: 18.4%
Mutual Fund Updates
In 2023, my mutual fund portfolio zoomed by ~40%. This growth was majorly driven by the small cap funds.
As you probably know, I have a sizable portion of money invested in Parag Parikh Flexi cap fund. This fund also garnered ~37% return last year.
So, in short, small cap funds rallied and parag Parikh flexi cap fund gave a stellar return. Altogether, mutual fund portfolio did very well well.
Action on Last Year:
Last year, I invested a good amount of lumpsum in a small cap fund during May-June. It increased my allocation towards the small cap that time. And in the last six months, rally in a small cap further skewed my weightage on the small cap fund more.
Now:
While ending the year 2023, the allocation increased to 41% in the small cap.
I have started trimming my position at the small cap funds, and probably bring close to 25%. I am putting this money on Bank Nifty. Trimming will continue for some time and my position at Bank nifty will be built at the same pace.
Why Bank Nifty? If you see the PB ratio of Bank Nifty over five years, you will get the answer.
P.S. This action fits my risk-reward appetite, may not be suitable for you. Because each one of us is on a different journey. So, no buy or sell recommendation, as usual.
In 2023, my mutual fund portfolio zoomed by ~40%. This growth was majorly driven by the small cap funds.
As you probably know, I have a sizable portion of money invested in Parag Parikh Flexi cap fund. This fund also garnered ~37% return last year.
So, in short, small cap funds rallied and parag Parikh flexi cap fund gave a stellar return. Altogether, mutual fund portfolio did very well well.
Action on Last Year:
Last year, I invested a good amount of lumpsum in a small cap fund during May-June. It increased my allocation towards the small cap that time. And in the last six months, rally in a small cap further skewed my weightage on the small cap fund more.
Now:
While ending the year 2023, the allocation increased to 41% in the small cap.
I have started trimming my position at the small cap funds, and probably bring close to 25%. I am putting this money on Bank Nifty. Trimming will continue for some time and my position at Bank nifty will be built at the same pace.
Why Bank Nifty? If you see the PB ratio of Bank Nifty over five years, you will get the answer.
P.S. This action fits my risk-reward appetite, may not be suitable for you. Because each one of us is on a different journey. So, no buy or sell recommendation, as usual.
Sharekhan_Agri_Inputs_and_Specialty_Chemicals_Review_Muted_Q3,_Recovery.pdf
117.8 KB
Sharekhan_Agri_Inputs_and_Specialty_Chemicals_Review_Muted_Q3,_Recovery.pdf
Sold Asian Paints!
Today, I sold Asian Paints.
Reasons:
1. Asset creation in this industry intensified. This rate is faster than industry growth. Hence, the profitability of the sector will go down.
2. I still believe that Asian Paints will remain the strongest players for at least a decade. However, ROCE of Asian Paints will gradually absorb the shock. And when it happens, PE will continue to de-rate. If the profitability keeps up the pace, this de-rating will keep the stock price in consolidation. This is the bull case.
3. Bear case will include scenarios like, a price war in paint outbreaks rapidly and the margin takes a sharp hit. In this case, profit growth will slow down while PE de-rates even faster. Stock price corrects and swings in a price band for a longer time.
4. Though I love this business, I know that the business does not love me. I see the risk-reward ratio not favouring me. I remained uncertain and took a rational approach to take a sidestep and watch the show. Hence, exited.
Today, I sold Asian Paints.
Reasons:
1. Asset creation in this industry intensified. This rate is faster than industry growth. Hence, the profitability of the sector will go down.
2. I still believe that Asian Paints will remain the strongest players for at least a decade. However, ROCE of Asian Paints will gradually absorb the shock. And when it happens, PE will continue to de-rate. If the profitability keeps up the pace, this de-rating will keep the stock price in consolidation. This is the bull case.
3. Bear case will include scenarios like, a price war in paint outbreaks rapidly and the margin takes a sharp hit. In this case, profit growth will slow down while PE de-rates even faster. Stock price corrects and swings in a price band for a longer time.
4. Though I love this business, I know that the business does not love me. I see the risk-reward ratio not favouring me. I remained uncertain and took a rational approach to take a sidestep and watch the show. Hence, exited.
Was the Selling of AP a blunder?
Anonymous Poll
31%
Of course, Yes
39%
Not sure, will see
30%
Rational decision
I sold Relaxo more than a year now. Does it look like a mistake now?
Anonymous Poll
21%
Yes
62%
No
17%
Short time, so cannot comment
I did not sell Abbott India two years back and still own it. Does it look like a mistake now?
Anonymous Poll
25%
Yes
58%
No
17%
Have to wait and see
RBI cracks down on Kotak Mahindra Bank; bars onboarding new customers through online, mobile banking and issuing new credit cards
https://www.moneycontrol.com/news/business/rbi-bars-kotak-mahindra-bank-from-onboarding-new-customers-through-online-mobile-banking-issue-new-credit-cards-12707215.html
https://www.moneycontrol.com/news/business/rbi-bars-kotak-mahindra-bank-from-onboarding-new-customers-through-online-mobile-banking-issue-new-credit-cards-12707215.html
Paint companies Asian Paints and Berger Paints start slashing prices | Company News - Business Standard
https://www.business-standard.com/companies/news/paint-companies-asian-paints-and-berger-paints-start-slashing-prices-124051701296_1.html
https://www.business-standard.com/companies/news/paint-companies-asian-paints-and-berger-paints-start-slashing-prices-124051701296_1.html
Business-Standard
Paint companies Asian Paints and Berger Paints start slashing prices
Asian Paints Price Cut: Paint companies remain unperturbed with competition heating up
Election Results & Market
If daily ups & downs are bothering you, just check one month's data of Nifty 50.
Nifty 50 is hardly down by 2.5%. Most of your portfolio has not changed much over the last one month.
Volatility is the daily saga. Relax and ignore it like the advertisement on your online streaming.
If daily ups & downs are bothering you, just check one month's data of Nifty 50.
Nifty 50 is hardly down by 2.5%. Most of your portfolio has not changed much over the last one month.
Volatility is the daily saga. Relax and ignore it like the advertisement on your online streaming.
Regret
Equity investing is full of regret. In all cases, equity will offer you the space for regret.
If the stock goes down, the regret cloud forms easily.
If the stock goes up but doesn't go up as per your expectations, regret will overcast you.
If the stock runs up, you will regret why you have not bought more.
The best way to deal with it, is to accept all these feelings. These are the tolls for wealth creation journey.
And ignore one or two stock performances. Portfolio counts. Over the long term.
Equity investing is full of regret. In all cases, equity will offer you the space for regret.
If the stock goes down, the regret cloud forms easily.
If the stock goes up but doesn't go up as per your expectations, regret will overcast you.
If the stock runs up, you will regret why you have not bought more.
The best way to deal with it, is to accept all these feelings. These are the tolls for wealth creation journey.
And ignore one or two stock performances. Portfolio counts. Over the long term.