Well, this is one stock I've heard quite a few times, and I'm analyzing it these days. Piramal Industries (earlier Healthcare)...yes, interesting company, but still need some time for detailed analysis, so took a tracking position in it.
Since this will now become 11th stock, and I have two small caps, SRF and MAZDA now, I'm thinking about balancing capital betweek SRF and MAZDA, such that the risk of getting into two 'value traps' reduces. The rationale is that while both SRF and MAZDA are healthy businesses, the risk of not getting a higher valuation by market is prevalent due to small company profile, boring business and not so strong moat. So, from current ~14% level of SRF, I plan to bring down level to ~6% and fill MAZDA will the flows. Of course, the key is to way for the right moment to reduce SRF and increase MAZDA. I'll buy more of MAZDA below Rs 87, while reduce SRF when it returns to 230+ levels.
Now that this is a new thought, I should also wait for it to sink it before taking action, so, let's wait for the result reason to begin and see how overall market behaves.
Of course, till then, I'll also analyze Piramal Industries and maybe something changes on this thought...let's wait and watch :-)
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