Monthly Portfolio Review – May 2010

BSE Sensex lost 3.5% and NSE Nifty 3.63% while my portfolio lost 2.68% during the month of May 2010. The major gainers in my portfolio were Berger Paints and Tata Tea and major losers Suzlon Energy, Bharti Airtel and Tata Communications. The unexpected loss reported for the last quarter and its heavy debts caused crash in price of Suzlon Energy. It has been taking measures to reduce its debts for sometimes now. Tight competition, recent TRAI recommendation to charge for excess 2G spectrum, heavy 3G auction amount – it was all bad news for Telecom sector and it affected Bharti Airtel which is a major constituent in my portfolio. Going forward, a turn around is expected in Bharti Airtel due to its positive outlook in the long run.

In 2010 to date, BSE Sensex lost 2.98% and NSE Nifty 2.21% while my portfolio gained 0.16%. I added 5 companies in my portfolio during 2010 so far – Hero Honda, Crompton Greaves, Hindustan Unilever, Glenmark Pharma and Biocon.

Return

Drops BSE Sensex NSE Nifty INR/AED
This Week 0.08% 0.48% 0.39% -0.32%
This month -2.68% -3.50% -3.63% -4.06%
This Year 0.16% -2.98% -2.21% 0.32%
Since 1-4-2007 71.25% 29.62% 33.10% -6.76%
Since 1-1-2008 37.84% -16.15% -16.34% -17.38%
Since 1-1-2009 105.08% 75.64% 71.89% 4.04%
Since 1-1-2010 0.16% -2.98% -2.21% 0.32%

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Bharti Airtel Telecom 262.30 531.00 102%
Hindustan Unilever FMCG 236.75 450.00 90%
Crompton Greaves Engineering 240.25 394.00 64%
Hero Honda Auto 1937.80 2972.00 53%
NTPC Power 202.00 293.00 45%

Since first four are already in my top 10 holding and total of top ten exceeded the maximum limit, I would be buying NTPC next week.

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 18% 34 months 59%
Tata Tea FMCG 12% 19 months 104%
Bharti Airtel Telecom 9% 5 months -10%
Dabur India FMCG 7% 39 months 132%
Gujarat Gas Energy 7% 25 months 131%

Shares I bought this month

Company Average Price
Crompton Greaves 246.63
Hindustan Unilever 234.48
Bharti Airtel 266.05
Suzlon Energy 59.90

Shares I sold this month

Company Average Price
Piramal Healthcare 556.23

Top 5 most gain (absolute)

Company Return Average Holding Period
Dabur India 132% 39 months
Gujarat Gas 131% 25 months
Tata Tea 104% 19 months
Infosys 59% 34 months
Berger Paints 71% 40 months

Archive of previous portfolio reviews


Weekly Portfolio Review

With another week closed in red, my year to date return turned negative to -1.30%. During the same period BSE Sensex lost 5.84% and NSE Nifty 5.19%. By end of the week, my portfolio stands as follows:

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Bharti Airtel Telecom 265.85 531 100%
Hindustan Unilever FMCG 230.50 448.00 95%
Crompton Greaves Engineering 228.25 394.00 73%
Suzlon Energy Energy 58.65 94.00 60%

Since first four are already in my top 10 holding and total of top ten exceeded the maximum limit, I would be buying Suzlon Energy next week.

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 18% 33 months 55%
Tata Tea FMCG 12% 18 months 106%
Bharti Airtel Telecom 10% 5 months -9%
Dabur India FMCG 7% 38 months 132%
Gujarat Gas Energy 7% 25 months 127%

Shares I bought this month

Company Average Price
Crompton Greaves 246.63
Hindustan Unilever 234.48
Bharti Airtel 266.05

Shares I sold this month

Company Average Price
Piramal Healthcare 556.23

Top 5 most gain (absolute)

Company Return Average Holding Period
Dabur India 132% 38 months
Gujarat Gas 127% 25 months
Tata Tea 106% 18 months
Infosys 55% 33 months
Berger Paints 54% 39 months

Archive of previous portfolio reviews


Crompton Greaves – update

Crompton Greaves: Buyouts, strong cash position offer comfort – Economic Times

http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/Crompton-Greaves-Buyouts-strong-cash-position-offer-comfort/articleshow/5938375.cms

Crompton Greaves posted another impressive quarterly performance for March 2010. Its consolidated profits grew by 40%, despite a modest sales growth…

… The outlook for the company remains strong, as its expansion strategy through acquisition has paid off, backed by a strong cash position. It has also managed its input prices well, which dented the profits of most engineering companies. While the lack of growth in international markets is a drag on topline, Crompton Greaves has used this to its advantage though buyouts, as the targets were available at more attractive prices. Clearly, there isn’t much for the company to worry, for now.

Crompton Greaves: Global concerns emerge – Business Standard

http://www.business-standard.com/india/news/crompton-greaves-global-concerns-emerge/394850/

Crompton Greaves’ consolidated financial performance in the March 2010 quarter was disappointing, as revenue grew marginally at 2 per cent to Rs 2,508 crore, compared to the same period a year ago. The domestic market, which grew at 19 per cent, supported the revenue stream…

… Moreover, there are concerns over the fate of its international business, as the Eruozone crisis might take a toll on revenue growth. The stock, like its peers in the engineering and capital goods space, looks expensive at 17 times and 15 times price to estimated earnings for FY11 and FY12, respectively. Attractive acquisitions, faster recovery in developed key markets, and unlocking value from listing of its 32 per cent group power generation company Avantha power will reinforce positive outlook and lead to further re-rating.

Weekly Portfolio Review

Year to date gain of my equity portfolio stands at mere 0.41% by end of this week. During the same period BSE Sensex lost 2.69% and NSE Nifty 2.07%!  Suzlon Energy, Tata Communication, Bharti Airtel,  and NTPC were the biggest loser and  Gujarat Gas, Dabur India, Glenmark Pharma and Tata Tea contributed to gain in my portfolio.

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Bharti Airtel Telecom 264.45 529.00 100%
Hindustan Unilever FMCG 233.75 445.00 90%
Hero Honda Auto 1876.20 2956.00 58%
Crompton Greaves Engineering 250.35 394.00 58%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 19% 33 months 59%
Tata Tea FMCG 12% 18 months 100%
Bharti Airtel Telecom 10% 5 months -9%
Dabur India FMCG 7% 38 months 129%
Gujarat Gas Energy 7% 25 months 128%

Shares I bought this month

Company Average Price
Crompton Greaves 258.95
Hindustan Unilever 234.48
Bharti Airtel 266.05

Shares I sold this month

Company Average Price
Piramal Healthcare 556.23

Top 5 most gain (absolute)

Company Return Average Holding Period
Gujarat Gas 128% 25 months
Dabur India 129% 38 months
Tata Tea 100% 18 months
Suzlon Energy 69% 17 months
Infosys 59% 33 months

Archive of previous portfolio reviews


Fixed Deposit with Islamic Banks in UAE

Fixed deposit is one option if you need to park your savings for a shorter period, say a year or less. Fixed deposit is for a fixed period from one month to one year or even more. Conventional banks offer a fixed interest rate which varies based on the duration. Islamic banks in UAE give better return compared to its counter part in the conventional banking sector. The rate with Islamic bank is not fixed upfront, but it is declared at the end of a fixed period which is mostly every three months.  It is a profit rate which is derived from the profit they make from the investment of your fund. The profit earned on the fund is shared between bank and the depositors in a fixed proportion and the share of depositor profit is distributed among depositors periodically. Recently more and more conventional banks are offering Sharia compliant deposits and investment products.

Profit rate declared for the quarter ended 31st March 2010

Bank

1 month

3 months

6 months

9 months

1 year

Dubai Islamic Bank 3.00% 3.05% 3.10% 3.15% 3.25%
Emirates Islamic Bank N/A 3.26% 3.35% 3.53% 3.80%
Mashreq Al Islami 1.82% 3.28% 3.77% 4.25% 4.49%
Noor Islamic Bank* 3.00% 3.40% 3.65% 3.60% 3.80%
ADCB Meethaq 2.47% 3.60% 4.08% N/A 4.70%

* Noor Islamic Bank rate is as declared for the month of April 2010

Related Links:

http://www.dib.ae/en/personalbanking_investmentaccount-profit.htm

http://www.emiratesislamicbank.ae/nr/eib/default.htm

http://www.mashreqalislami.com/personal/accounts/profit_rates/

http://www.noorbank.com/ae/english/personal/accounts/mudaraba-profit-rates/index.aspx

http://www.adcbmeethaq.com/PersonalBanking/accounts/terminvdepositrates/terminvestmentdepositrates2010.asp

More on savings

More on Fixed Deposit

A negative week for the markets!

The week gone was one of the worst weeks for the stock market around the world and so the Indian market. BSE Sensex lost 4.5% and NSE Nifty lost 4.93% in the past week. Europe’s debt woes which adds to the fears of another crisis and UK election that resulted in a hung parliament added fuel to the decline in the market which is already perceived as over priced. The decline and gain in the index level shows the direction of the stock market, but it is not the concern of an investor. An investor is concerned about the companies in his portfolio – its business and its prospects!

While the index lost 4.5% in the week, my loss was 2.4%. Glenmark Pharma and Dabur India in my portfolio ended the week in positive.

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Hindustan Unilever FMCG 234.70 445.00 90%
Bharti Airtel Telecom 287.70 529.00 84%
Crompton Greaves Engineering 245.90 394.00 60%
Hero Honda Auto 1889.90 2949.00 56%

Top 5 in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 19% 33 months 57%
Tata Tea FMCG 12% 18 months 92%
Bharti Airtel Telecom 9% 6 months -3%
Dabur India FMCG 8% 38 months 127%
Gujarat Gas Energy 7% 25 months 127%

Shares I bought this month

Company Price
Crompton Greaves 258.95
Hindustan Unilever 233.00

Top 5 most gain (absolute)

Company Return Average Holding Period
Gujarat Gas 127% 25 months
Dabur India 127% 38 months
Tata Tea 92% 18 months
Suzlon Energy 74% 17 months
Infosys 57% 33 months

Archive of previous portfolio reviews


“I SAVE & I WIN” promotion from National Bonds

The new promotion ‘I save, I win’ announced by National Bonds gives away exciting prizes including Blackberrys,  iPhone,  iPads, Gold Coins and Gold Bars with a grand draw for 1 Kilo gold in addition to the regular weekly draws for bonds which is cashable immediately . National Bonds is the sharia compliant national savings scheme of the UAE that provides a profit based annual returns besides weekly prize draws!

The promotion runs from 5th May to 31st July 2010. There will be three draws for this promotion prizes on 29th May  and 26th June  and 31st July 2010. The grand draw for 1 kilo of gold will be on 31st July 2010. There will be a total of 163 prizes comprising Blackberry 9700 (30 numbers), iPhone  16GB (30 numbers), iPad – 16GB (60),  30 grams gold coins (30) and 100 grams Gold Bars (12) to be given away in three draws plus 1 kilo gold in grand draw.

To be eligible for the draw for Blackberry and iPhone, there should have a minimum savings in bonds of AED 1,000, for iPad AED 5,000, for 30 grams gold coins AED 10,000 and for 100 grams gold Bars AED 15,000 and for the grand draw of 1 kilo gold, minimum savings required is AED 25,000.

Prizes can be exchanged for National Bonds Savings certificates at the same value of the prizes.

Related Link:

Save with National Bonds

More on Savings


Crompton Greaves Limited

Crompton Greaves one of the India’s large private sector enterprises, has diversified business model  in designing, manufacturing and marketing technologically advanced electrical products and services related to power generation, transmission and distribution, besides executing turnkey projects. The company is the single largest source for a wide variety of electrical equipments and products. With several international acquisitions, Crompton Greaves is fast emerging as a first choice global supplier for high quality electrical equipment. The company addresses all the segments of the power industry from complex industrial solutions to basic household requirements.

The company is organized into three business groups viz. Power Systems, Industrial Systems, Consumer Products. Presently, the company is offering wide range of products such as power & industrial transformers, HT circuit breakers, LT & HT motors, DC motors, traction motors, alternators/ generators, railway signalling equipments, lighting products, fans, pumps and public switching, transmission and access products. In addition to offering broad range of products, the company undertakes turnkey projects from concept to commissioning. Apart from this, CG exports its products to more than 60 countries worldwide, which includes the emerging South-East Asian and Latin American markets.

Recent Developments

Crompton Greaves Ltd just concluded an arrangement for the acquisition of 3 businesses on a slump sale basis. The first one is Traction Electronics which deals with railways as the main customer. The second one is Supervisory Control and Data Acquisition (SCADA), of which the main customers the railways, Power Grid Corporation of India, NTPC, all utilities which do the transmission and distribution of electricity. The third one is Industrial Drives which is controlling the speed of the motors for energy efficiency through a variable voltage or variable frequency drives. For the year ending is September 2010, they hope to do a sale of about Rs 115 crore. These units have an opportunity to grow compounded at an annual growth rate of 30%. In five years time this should be a major business for Crompton Greaves.

Crompton Greave’s acquisitions over last five years overseas include PTS, Pauwels, Ganz, Microsol, MSE power and Sonomatra. PTS is a UK-based electrical engineering firm with rich exposure to comprehensive electrical engineering space and diverse clientele base in the UK. Pauwels with manufacturing facilities in five locations—Belgium, Canada, the US, Ireland and Indonesia – was catering to the US and west European markets. The Hungarian switchgears maker Ganz was selling in markets like the Middle-East and Eastern Europe. Microsol Holdings in Ireland provides automated technologies for running sub-stations. France-based Sonomatra will help enhance the Company’s capabilities in the services segment of its transmission & distribution business. US-based MSE Power would help to increase its strength as a systems integrator in the engineering, procurement & construction (EPC) international business arena, particularly in the renewable energy (wind) segment. MSE recently purchased wind-turbine monitoring technology from Second Wind Systems Inc.

Prospects

All economic indicators point towards the manufacturing sector being the future driver of India’s economic growth. India is today preferred destination for sourcing various engineering goods not only due to low cost but also due to high quality of products. Strong positioning in the domestic transformer market, steady profit margins despite competitive pressures and continuing inorganic growth augur well for the company’s earnings growth.

The concern is the threat of imminent competition from global players who are already in the process of setting up manufacturing facilities in India. The market is expected to remain competition with an added element of competition from imported products. Chinese and Korean players are biggest competitors for Crompton Greaves.

While European  subsidiaries have been unable to grow in 2009-10 owing to unfavourable economic conditions in Europe and North America, return to growth  is expected from 2010-11. Recent acquisition of Power Technology Solutions (PTS) will help to expand its geographical reach! PTS is also looking to tap the opportunity in the renewable energy space, a growing market in the UK.

The scenario for the Indian Economy in general and that for the Capital Goods Industry in particular has undoubtedly improved to an extent, after the political stability in the country along with the easing liquidity situation and the offshoots of recovery in the global economy. The capital goods companies catering to the Power Sector will continue to enjoy a degree of comfort, owing to the government’s thrust on this core sector. However the sector has its own set of issues, with around 49% of the planned power projects for the Eleventh Plan already running behind schedule.

Updates Company website | Market Information | News and Analysis |


Reference

Charged with global ambition

April 13, 2010

http://www.financialexpress.com/news/Charged-with-global-ambition/605446/

Crompton Greaves: Buy

April 4, 2010

http://www.blonnet.com/iw/2010/04/04/stories/2010040452800100.htm

Indian Capital Goods sector 4Q FY2010 outlook

April 8, 2010

http://www.stockmarketsreview.com/news/indian_capital_goods_sector_4q_fy2010_outlook_20100408%20%20_4089/

Four months, without much gain!

One third of the year 2010 passed without much excitement in the market. Stock market in India was dull during the first four months of 2010 which saw a gain of mere 0.54% in the BSE Sensex and 1.48% in NSE Nifty.

I managed a gain of 2.92% to date this year and maintained my record of beating the market even if it is a nominal gain. Which stocks helped me to beat the market this year? Piramal Healthcare which I bought towards end of January gave me a return of 54%. Piramal Healthcare constitutes 4.7% in my Indian equity portfolio. The other companies in my portfolio that gained most in the last four months are Gujarat Gas (23%), Dabur India (13%), and Tata Tea (12%). But of course it was not only gainers league. The stocks that dragged me down are Suzlon Energy (-24%), Tata Communications (-19%), NTPC (-12%), Bharti Airtel (-9%). Bharti Airtel constitutes 9% in my portfolio. Hope these will be contributing towards gain in coming months!

In my watch list, Bharti Airtel (Current Price: 298.40 – Target Price: 529.00) and Tata Communications (Current Price: 270.95 – Target Price: 484.00) in Telecom sector, Hero Honda (Current Price: 1,904.95 – Target Price: 2,943.00) in Automobile sector, Crompton Greaves (Current Price: 263.50 – Target Price: 394.00) in Engineering, and Cadila Healthcare (Current Price: 564.50 – Target Price: 818.00) are the good buys.

Top 5 in my equity portfolio

Company Sector % of Total Value
Infosys IT 20%
Tata Tea FMCG 12%
Bharti Airtel Telecom 9%
Dabur India FMCG 7%
Gujarat Fas Energy 7%

Shares I bought in April 2010

Company Price
Hero Honda 1,967.65

Most gain (absolute)

Company %  Gain Average period of holding
Gujarat Gas 130% 2.5 Years
Dabur India 127% 3 Years
Tata Tea 98% 1.5 Years
Suzlon Energy 77% 1.5 Years
Infosys 64% 2.5 Years