1 week ago
Piper Serica reshapes portfolio, adds pharma and electronics stocks
Piper Serica changed some of the companies in its investment portfolio.
It added Gland Pharma, a pharmaceutical company, and Astra Microwave Products, an electronics company.
The fund believes Gland Pharma can grow steadily in the coming years.
It chose Astra Microwave because the company has growing orders and experience in radar systems.
The fund sold its investments in CDSL and CAMS after owning them for about five years.
It said those investments had performed well, but other opportunities now looked better.
Piper Serica prefers pharmaceutical companies that invest in research and develop complex products for markets such as the United States and Europe.
Most of its portfolio is made up of small companies that may still be early in their growth.
Piper Serica added Gland Pharma and Astra Microwave Products to its portfolio.
The fund exited Central Depository Services (India) Limited and Computer Age Management Services Limited after holding them for about five years.
Agarwal expects Gland Pharma to grow 15-20% annually over the next four to five years.
Astra Microwave was selected for its order-book growth and execution capabilities in radar systems.
About 75% of the model portfolio is invested in small-cap stocks, while the fund remains underweight on large private banks and has avoided IT services for three years.
- Who
- Piper Serica and its fund manager, identified in the article as Agarwal.
- What
- The fund added Gland Pharma and Astra Microwave Products while exiting CDSL and CAMS.
- Where
- No specific location is stated.
- When
- The article gives no date; CDSL and CAMS had been held for around five years, and the portfolio’s stated focus has applied for the past one to one-and-a-half years.
- Why
- The fund cited Gland Pharma’s valuation and growth prospects, Astra Microwave’s order-book growth and radar execution, and better opportunities elsewhere after strong returns from CDSL and CAMS.
Key facts
- New additions
- Gland Pharma and Astra Microwave Products
- Exited holdings
- CDSL and CAMS
- Expected Gland Pharma growth
- 15-20% annually over the next four to five years
- Typical individual allocation
- Generally 5%-10% of the model portfolio
- Small-cap allocation
- Around 75% of the model portfolio
- IT services exposure
- None for the past three years
- Pharmaceutical preference
- Innovation, research and development, complex formulations, and advanced markets such as the US and Europe
Sources
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