Dilip Kumar Lakhi Latest Portfolio
Dilip Kumar Lakhi is one of the top investors in Indian markets. He has picked many good picks over the years and made name for himself. In this article we will discuss about his latest portfolio and sectors he has invested in.
We will also see some unique features of his portfolio which differentiates his investment with others. In case you are interested in portfolio of other top investors of India like Rakesh Jhunjhunwala then you can read below article of mine.
|Avonmore Capital &
Management Services Ltd.
|RMG Alloy Steel Ltd.||Steel|
|Uflex Limited||Printing Ink|
|Unitech Limited||Real Estate
|Welspun Enterprises||Real Estate
Interesting points about Portfolio
Based on the stock picks of Dilip Kumar Lekhi I observed below interesting facts. As you might have noticed every top investor have something in common and they also have their differences.
With this section and next section about Investment strategy based on stock picks I try to present those similarities and differences to you in simple language. This may help you get more insight into thought process and you can use the same in your stock picking.
1. No Pharma or Private Bank or Auto
Pharma and Private Sector banks are two fail safe and defensive pick as per many analysts. Many top investors have them in their portfolio for example Rakesh Jhunjhunwala has Lupin and Federal bank in his kitty.
But Dilip Kumar Lekhi does not have a single share from these two prominent sectors. Note these two are one of the top sectors based on combined Market Cap. He also does not have any Auto company as well. But that is neutralized by presence of one Auto Ancillary stocks in the kitty.
Similar strategy of not including any Pharma and Private Sector banks or Auto has been seen in case of Dolly Khanna as well. She has also not invested in any IT company but Dilip has one IT company in portfolio.
2. Focus on Less popular Sectors
Most top investors have this one thing in common. They do have some stocks from not so popular sector or themes. For example in case of Dilip kumar Lekhi we have stocks from media sector, Lubricants sector, Printing Ink and paper sector.
There are not too many companies listed in these sector. If you search for dedicated Lubricants companies then there are only 3 major players (Castrol , Tide Water Oil and Gulf Oil). Though other Oil marketing companies also have lubricants but theses are major companies.
Similarly other sectors like Printing Ink also have very less number of companies listed like DIC India. So these lesser known sector are focus point of his portfolio. He has 4 companies from these lesser known sectors.
3. Presence of Cyclical and Non Cyclical Sectors
Dilipkumar Lekhi has both cyclical sector and non cyclical sector in his portfolio. Sectors like Real Estate are cyclical sectors. He has two companies present in this sector.Paper and Steel are also considered as Cyclical sector as well.
We have seen that other top investors have also invested in Textiles and Sugar stocks as well. But instead of picking these ones he has gone with other sectors.
Along with these cyclical sectors he has invested in Non Cyclical business as well. So it is well balanced portfolio in this regard.
What Portfolio tells about Investment Strategy?
There are multiple things this stock picking tells us about his investment style. Based on these picking I have pen down my thoughts. Note this is not shared by the investor himself. It is my own analysis based on his portfolio.
1. Bet on Reversals and Contra Calls
There are two real estate companies in his portfolio. We all know how beaten down Unitech stock have been over the years. But it is still present in his portfolio. Some needs extreme courage to buy a stock like Unitech which has all negatives going for it.
But this is the beauty of top investors. They buy a stock when everyone fears to touch it. Personally I will not buy Unitech due to surrounding news and will monitor the positions he will exit or book profit. But this is an excellent example of Contra call and investment in beaten down stock.
2. Balanced number of shares
Now this is where this portfolio stands out. Most book recommend to have somewhere around 10 to 30 stocks in one’s portfolio. He has the optimal number to say the least.
We have seen top investors (Subramanian P and Hitesh Ramji Javeri) having more than 50 stocks in their portfolio and so far only one investor (Akash Bhansali)have same number of stocks as Dilip kumar Lekhi.
Hope you were able to get some value and tips for your own investment. You can track these stocks and create your own watch list and then analyze them in details.
I will share one more interesting portfolio of top investor in coming articles till then stay tuned and happy investing.