Newsletter of Amitabh Vatsya - Issue #21

Dear Readers !

We are a 7000 + tribe on Sadhan !!

Here comes the monthly update on Sadhan Portfolio for July 2021. A brief snapshot of #Sadhanportfolio is presented here.

My Average Holding Period is 217 days (~7 months) in which I generated 64% Absolute Return. During the same period Sensex have moved from 47,860 to 54,270 that means 14 % absolute return. So #SadhanPortfolio have beaten the market by 50 % in past 7 months. On annualized basis this return is humongous 108% p.a. (Portfolio IRR)

My current portfolio contains 8 Multibaggers out of 27 stocks, so almost one in three stock is a Multibagger (#sadhanmultibagger).

Watch my video on How to build a Multibagger Portfolio

Stock of the month was Tata Steel as I see it can result into a great money spinner on the back of Steel cycle as I see European part doing well in this coming quarter result next week. I have reduced JSPL due to recent corporate governance issue cropping up. Now the Management is trying to be fair by organising a competitive bidding of Jindal Power Ltd , Still I have postponed complete exit for a month. I have added NMDC small quantity this month.

I turned bullish on Textile sector as I find that the structural shift from China to other nations including India hence I have initiated positions in a small cap company operating in spinning yarn and Technical textile and one of the market leader in spinning yarns. These 2 stocks are for medium term hold for now. Whereas I have increased my holdings in 2 Home Textile companies including Indo Count as they have a slightly long runway.

I have already explained why I am bullish and street may be wrong about Affle in the video as I am waiting for Q1 results of Affle as there is not much public information available on Phonepe dispute. My conviction in the stock is unmoved.

I have added Dhampur Sugar as the Sugar story has been going stronger due to Ethanol push by govt./Ministers and falling production of sugar at Brazil. I have increased allocation to Fertiliser stocks Chambal & a midcap Chemical + Fertiliser co as subsidies have significantly reduced and they will start with a leaner balance sheet this year. Rest of the untouched business are mostly compounding machines such as  Alkyl Amines, Bajaj Finance, Kotak Mahindra Bank, HDFC Bank.

I have completely sold IGL as I think Gujarat Gas and MGL are better placed.

Till July 30, 2021, my personal wealth have been compounding @73% (Amitabh Vatsya Portfolio IRR). A brief summary of Follow My Portfolio is summarized below

Starting with #glandpharma and its ever widening moat

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Disclaimer: Stock mentioned are Not Recommendation ! These are only for educational purpose.