Who is Subramanian P?
Subramanian P is one of the leading investors in Indian Market. He has invested crores of rupees in stock market. In this article we will discuss his latest portfolio. We will also discuss investment strategy and interesting observations based on his stock picks.
In case you want to see portfolio of other investors as well then you can browse below article of mine. That article lists portfolio of leading investors and Mutual Fund houses in India.
Click for Portfolio of Top Investors and Mutual Funds
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Interesting points about Portfolio
Below are some interesting points about the Portfolio.
1. Micro Caps all the way
There is no Large Cap and Mid Cap companies in the portfolio. Most of the companies are very small and will hardly come under Micro Cap as well. There are companies which does not have Market Cap near 100 Crore as well.
This is in contrast to portfolio of Rakesh Jhunjhunwala or Vijay Kedia both. These two eminent investors have combination of companies based on market capitalization.
So if you want to know about good and unknown companies then this is the portfolio you should look into. The list of 100 plus companies is huge and good starting point as well.
2. Too Diversified portfolio
Most portfolio of eminent investors have at the max 50 stocks in them. People often take 10 to 30 stocks as normal. But this portfolio has expanded itself to 100 stocks. This is too much diversification of the portfolio by Subramanian P.
The reason may be explained by presence of too many micro caps. It is very difficult to evaluate Micro Caps in great details. So to immune his portfolio he has tried to diversify it as much as possible. So even if some go burst then also it is protected.
If 5 companies go burst and 1 make big then also the loss of those 5 gets covered. In my opinion this may be one reason of picking too many stocks in the list. Other investors do not have all Micro Caps so they just do well with less number of companies.
3. Sector Concentration
This is an interesting ploy by Subramanian P. He has well diversified the portfolio with over 100 stocks as discussed in point 2 above. But if you see carefully he has more than one company from a particular sector.
For example if you pick Textiles or Plastics then you can see more than 5 companies in those sectors. Agreed textiles is vast sector and have sub sectors as well. But even so if you see portfolio of other masters then they will have one or two companies from a sector.
Most of the portfolio have companies from Textiles, Granite, Leather and Pharma. Leather is a small sector but has found significant presence in the portfolio.
What Portfolio tells about Investment Strategy?
There is no one way to make money in Stock market. This has been proved so well by these Investors. Portfolio of each one of them looks so different from others and so is their investment philosophy.
1. Identify Unorganized Sectors
This is perhaps most important investment strategy of Subramanian P. Most of the sectors he has picked are unorganized. Most of them have small players. For example Granite is an growing sector.
With time it is becoming a status symbol as well. But there is no well recognized brand in this sector. Mostly you have local players and small companies.
If you see the portfolio he has picked 4-5 companies from this sector alone. The sector will grow due to internal demands and so will the companies. Similar is the case with Plastics and textiles. Textiles does have prime players but Plastics does not have many.
These themes are based on Consumption theme and used by common public. So the companies dealing with common items were picked. Note this consumption based theme was also one major decision maker in Rakesh Jhunjhunwala stock picking.
2. Identify Small Players in Growth Sectors
The problem with Micro Caps are risk of going them out of market or some wrong acts which will burst them financially down the line. This is severe risk as companies are small in size with no proven track record for long.
This risk is mitigated by diversification. He has invested in multiple stocks from same segment. All the stocks are small in nature and the chances of going burst is minimized.
One of the stock will get benefit of sector boom and make it big. Chances may be that other stocks may under perform or one of them may go burst. In that case also investment is preserved and you are in profit due to that one company turning big.
Conclusion
Subramanian P portfolio is good read for Investors. Investors can get idea of growth sectors. These growth sectors can form basis of your analysis. You can then refer the companies as well.
People often search for good small companies which will become Multi Bagger in future. You can visit this portfolio to get the list of such companies.
In next articles we will discuss yet other important investor portfolio and also analyze it. So stay tuned.