22nd Nov 2016

Sold of Larsen & Toubro from my portfolio and the reason to offload the positions are as follows.

1. The amount invested in this stock was only 25k which was quite low when compared to other stocks and it had run-up too much and I was not very comfortable adding more position at those elevated levels. So it does not make sense for having this stock in my portfolio.
2. L&T is a capex business and deals with cash (not black money) like paying salaries of people. In fact all infrastructure companies pay salaries and wages in cash and they can have issues with the demonetization effect. Though I am not very sure how this will impact in totality but as my position was very small it made sense to book profits.
3. L&T again was infrastructure business but as other L&T companies (L&T Tech Services and L&T Infotech) were listed, I foud that this is now a group business with a major focus being on infrastructure sector. I tend to avoid group business (Details here - http://shabbir.in/investment-checklist/ point no 3)

Please see the attached contract notes for trade details.