Weekly Portfolio Review: 22 August 2010

BSE Sensex ended 1.29% higher and NSE Nifty 1.44% in the past week. During the month, Tata Communications, Berger Paints, Gujarat Gas, Biocon and HUl were top gainers and Suzlon Energy, Tata Global Beverages, NTPC, Maharashtra Seamless and Dr. Reddy Laboratories were top losers in my portfolio.

Good buys in my watch list

Company Sector 3 Years Target Current Price Expected Return
Mangalam Cement Cement 400.00 160.95 149%
Graphite India Engineering 200.00 97.50 105%
Swaraj Engines Auto Ancil 850.00 415.50 105%
KSB Pumps Engineering 1,072.00 575.50 86%
Maharashtra Seamless Metal 722.00 391.70 84%
HUL FMCG 466.00 269.00 73%
Bharti Airtel Telecom 510.00 310.15 64%
Hero Honda Auto 3,054.00 1,916.40 59%
Dr. Reddy Pharma 2,106.00 1,326.05 59%
Hindustan Zinc Metal 1,730.00 1,121.75 54%
NTPC Power 293.00 193.25 52%
M&M Auto 925.00 617.75 50%

–          Bharti Airtel announced that it has achieved Gold Certification from Cisco. With this, Bharti Airtel is the first Indian telecom service provider to achieve this certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco. – expressindia.com

–          Bharti Airtel saw the highest number of shares (1.3 crore) being bought by the fund houses, while Reliance Industries witnessed the maximum number of shares (1.7 crore) being sold, said a report from Sharekhan.com. – The Hindu Business Line

–          Bharti Airtel has outbid Idea Cellular, Karbonn Mobile and Micromax to win the sponsorship rights of all international cricket matches (barring the world cup tournament) to be played in India for the next three years. – The Economics Times

–          Bharti Airtel has dialled its highly successful minutes-factory strategy, this time for Africa. Zain Kenya, a Bharti subsidiary, halved tariffs for both prepaid and postpaid subscribers. The move is said to have led to many Kenyans switching from Safaricom, the largest Kenyan telco with about 12 million subscribers, to Zain Kenya. – DNA

–          Bharti Airtel, India’s top mobile operator, signed up 2.6 million mobile subscribers in July, taking its total to 139.2 million subscribers. Vodafone Essar, the country’s third-largest mobile phone operator and controlled by Vodafone, gained 2.4 million subscribers in July to have a total of 111.5 million, the Cellular Operators Association of India said. – The Indian Express

–          Bharti Airtel announced plans to invest $ 10 million in its newly acquired telecom network in Seychelles. The company will also participate in the Seychelles East Africa submarine cable (SEAS) project. – The Economic Times

–          Dr. Reddy’s Laboratories Ltd. is in talks to enter Japan’s generic-drug market, company announced last week. Japan is the world’s second-largest pharmaceutical market.

–          Keeping religious sentiments and environmental concerns in view, a Group of Ministers (GoM) on Friday scrapped the NTPC’s controversial 600 MW Loharinag Pala hydel project on Bhagirathi river in Uttarakhand. – The Economic Times

–          The legal dispute between Reliance Industries (RIL) and NTPC over D6 gas may be heading for a truce, with Solicitor General Gopal Subramanium recommending that the country’s biggest power generator be given gas at a concessional rate under a provision of the production sharing contract (PSC). – Business Standard

–          NTPC-BHEL Power Projects, the joint venture between state-run BHEL and NTPC for making power equipment among others, is likely to rope in a global technology provider and may offer a minority stake, an NTPC official said on Wednesday. – The Economic Times

–          Keen to get gas for its plant, state-run NTPC may offer equity stake to Qatar Petroleum in its gas-based projects, a move that would allow the company an assured supply of fuel for operations. – The Economic Times

–          Indian utility vehicles maker Mahindra & Mahindra could benefit in the long-run from its pending acquisition of Ssangyong but investors are wary about the investments it will need to make in the Korean automaker and its recent foray into commercial trucks. Analysts feel multiple moves at the same time will be a drain on Mahindra’s cash flows and the stock could enter a phase of underperformance in the next 18 to 24 months. Mahindra & Mahindra (M&M), India’s largest tractor maker, plans to scale up its production capacity by over 60% in two years to cash in on the growing rural demand, according to a senior official. – The Economic Times

–          Riding on a successful launch of ‘Maximo’ mini-trucks, Mahindra & Mahindra is in the process of developing passenger vehicles and other variants on the same platform, according to Rajesh Jejurikar, Chief Executive, Automobile division. – The Hindu

–          Mahindra & Mahindra on Friday said it has received environmental clearance from the US authorities for its diesel pick-up trucks, a step which could bring it closer to launching the vehicle there

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 0.12% 1.29% 1.44%
This month 2.09% 2.99% 3.04%
This Year 8.01% 5.37% 6.34%
Since 1-1-2009 121.15% 90.75% 86.91%
Since 1-1-2008 48.64% -8.93% -9.03%
Since 1-4-2007 84.67% 40.77% 44.72%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 13 2.75 Years 66
Tata Global Beverages FMCG 8 1.75 Years 109
Bharti Airtel Telecom 8 8 months 7
Gujarat Gas Energy 5 2.30 Years 178
HUL FMCG 6 2 months 9

Shares I bought this month

Company Average Price
Graphite India 98.85
Mangalam Cement 158.20
KSB Pumps 562.95
Swaraj Engines 434.00

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 177 28 months
Dabur India 159 40 months
Tata Tea 109 21 months
Berger Paints 128 42 months
Infosys 66 36 months

Archive of previous portfolio reviews


Weekly Portfolio Review: 15 August 2010

– Happy Independence day to all my Indian friends –

Are you an investor or trader in stock market? I really don’t like trading which is to make profit out of day to day market volatility. Here there is no relevance to the fundamentals of the underlying assets or company. Technical analysis and speculation are the tools of the trade. On the other hand an investor look for good companies, do a study on its fundamentals and consider its valuation!

in the past week, gain on my portfolio was 1.12% while BSE Sensex gained 0.13% and NSE Nifty 0.24%. Among my holding, Tata Communications and Biocon gained 22% and 11% respectively in this month. Many other shares gained between 1 to 10 percent. Mangalam Cements which I recently added to my portfolio gave a negative return of 2.24%.

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Mangalam Cement Cement 157.00 400.00 155%
Graphite India Engineering 98.15 200.00 104%
Swaraj Engines Auto Ancillaries 426.00 850.00 100%
KSB Pumps Engineering 566.00 1,072.00 89%
Maharashtra Seamless Metal 404.00 720.00 78%

The above are small and mid cap companies. These are with high return potential and at the same with high risk. Limit the overall exposure to small and mid cap companies within a reasonable percentage of total portfolio value.

–          Graphite India’s net profit slumped 23.90% to Rs 34.39 crore on 10.2% rise in net sales to Rs 258.24 crore in Q1 June 2010 over Q1 June 2009. Reliance Mutual Fund acquired 70 lakh shares in Graphite India at Rs 96.50 per share in a bulk deal on the BSE on Friday, 6 August 2010. Lotus Global Investments was seller in the transaction to the tune of 79.41 lakh shares at an average price of Rs 96.56 per share. – indiainfoline.com

–          KSB Pumps has turned in a sales growth of 10% (to Rs 152.75 crore) for the quarter ended Jun 2010 but its net profit was lower by 8% (to Rs 15.85 crore). The operating profit was lower by 15% to Rs 22.49 crore as the operating margin eroded by 420 bps to 14.7% largely on account of higher material cost. – indiainfoline.com

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 1.12% 0.13% 0.24%
This month 1.97% 1.67% 1.57%
This Year 7.88% 4.02% 4.83%
Since 1-1-2009 120.89% 88.32% 84.25%
Since 1-1-2008 48.46% -10.10% -10.32%
Since 1-4-2007 84.45% 38.98% 42.67%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 13 2.75 Years 67
Tata Global Beverages FMCG 8 1.75 Years 114
Bharti Airtel Telecom 8 8 months 9
Maharashtra Seamless Metal 6 2 month 2
HUL FMCG 6 2 months 8

Shares I bought this month

Company Average Price
Graphite India 98.85
Mangalam Cement 158.20
KSB Pumps 562.95
Swaraj Engines 434.00

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 164 28 months
Dabur India 151 40 months
Tata Tea 114 21 months
Berger Paints 122 42 months
Infosys 67 36 months

Archive of previous portfolio reviews

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Graph: www.goldprice.org

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Weekly Portfolio Review: 8th August 2010

For an investor who looks for good companies and invests with a long term perspective like me, return on a week to week basis does not really matter. How much time does one need to invest in shares? It is just 5 or 10 minutes! Yes, you don’t have to be hooked on a computer screen looking the up and down of the Sensex! Time required is to study the company in which you are going to invest, not the graph of the Sensex!

Then why do I mention here how much Sensex gained in the last week or last month or year to date! Just to show that it does not really matter as it has no relevance on return on your investment! In the year to date, BSE Sensex gained 3.89%, NSE Nifty 4.58% and my return is 6.68%. Since 1st January 2008, Sensex registered a negative return of 10.21% while my return is 46.81%!

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Mangalam Cement Cement 155.45 400.00 157%
Graphite India Engineering 98.25 200.00 104%
Swaraj Engines Auto Ancillaries 413.50 850.00 106%
KSB Pumps Engineering 548.05 1,072.25 96%
Hindustan Unilever FMCG 255.15 462.00 81%

–          Swaraj Engines announced its first quarter result for 2010-11 last week. Compared to the same period of last year, the net revenue grew by 26% and net profit by 10%. Its despatch to Mahindra and Mahindra and Swaraj Mazda showed an increase of 22% and 15% respectively.

Drops Model Portfolio

Drops Model Portfolio is built up based on the top buy list in my weekly portfolio review. If you have been investing following my Good Buy List as above, now you would have invested Rs. 1,00,000.00 in shares of 16 companies. By investing weekly with an amount of Rs. 5,000 per transaction, we were building a portfolio of 15-20 companies! I made this illustrated portfolio to just show how you can diversify your portfolio and invest systematically to build an equity portfolio on your own. With this imaginary investment of Rupees one lakh, I will update this portfolio monthly and will publish here how it performs over time.  Download the spreadsheet for more information.

The top 5 companies:

Company No. of Shares Market Value Return % Weight Rank
Bharti Airtel 36 11,602.80 15.37% 11% 1
Crompton Greave 39 10,951.20 8.94% 10% 2
NIIT Tech 58 10,544.40 6.84% 10% 3
NTPC 50 9,865.00 -1.39% 9% 4
Geometric 80 5,796.00 17.02% 6% 5

Top gainers to date:

Company Return % Weight in Portfolio % Rank in Portfolio
Geometric 17.02 6 5
Cadila Health 14.92 6 6
Bharti Airtel 15.37 11 1
Crompton Greaves 8.94 10 2
HUL 10.50 5 9

Top losers!

Company Return % Weight in Portfolio % Rank in Portfolio
Hero Honda -3.38 5 7
Suzlon Energy -4.43 5 15
Mangalam Cement -5.18 4 16
Dr. Reddy’s -1.73 5 8
NTPC -1.39 9 4

Valappil’s Portfolio

Return (%)

Period Valappil’s Portfolio BSE Sensex NSE Nifty
This month 0.83 1.54 1.33
This Year 6.68 3.89 4.58
Since 1-1-2009 118.43 88.08 83.82
Since 1-1-2008 46.81 -10.21 -10.53
Since 1-4-2007 82.40 38.80 42.33

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 13 3 Years 72
Tata Global Beverages FMCG 8 1.75 Years 110
Bharti Airtel Telecom 8 7 months 11
Maharashtra Seamless Metal 6 1 month 1
HUL FMCG 6 2 months 3

Shares I bought this month

Company Average Price
Graphite India 98.85
Mangalam Cement 158.95
KSB Pumps 562.95
Swaraj Engines 434.00

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 153 27 months
Dabur India 155 40 months
Tata Tea 110 21 months
Berger Paints 112 42 months
Infosys 72 36 months

Archive of previous portfolio reviews


Monthly Portfolio Review: July 2010

In the month of July, BSE Sensex gained 0.95% and NSE Nifty 1.05%, while my personal portfolio returned just 0.10%! Year to date gain on Sensex is 2.31% and my return stands at 5.80%. As at the end of this month, return on Drops’ Model Portfolio is 4.23% on an average investment period of 1.91 months down from 7.92% at the end of the last week!

In the month, top gainers in my Portfolio were Bharti Airtel (16.58%), HCL Tech (7.51%), Blue Star (7.19%), Crompton Greaves (6.89%) and NIIT Tech (5.24%) and top losers were Hero Honda (11.31%), Dr. Reddy’s (6.86%), GAIL (6.20%), HUL (5.92%) and Dabur India (5.79%).

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Mangalam Cement Cement 163.95 400.00 144%
Graphite India Engineering 95.15 200.00 110%
Swaraj Engines Auto Ancillaries 419.05 850.00 103%
KSB Pumps Engineering 569.25 1,072.25 88%
Hindustan Unilever FMCG 251.10 462.00 84%

–          Mangalam Cement Limited incorporated in 1978 is a prominent cement manufacturing company from the house of B.K. Birla group. Its stock price has come down 25% from its 52 week high. Cement industry growth hit 57-month low in June 2010 due to low demand from infrastructure sector and less construction since the monsoon’s spread. The demand and price is expected to rise after monsoon period.

–          Graphite India Limited is the largest producer of graphite electrodes in India and one of the largest globally, by total capacity. Its first plant was commissioned in 1967 and today it has 3 plants in India and one in Germany. GIL exports 65% of its production to over 50 countries. Its stock price has come down 24% from its 52 week high. Graphite India showed strong top line growth during Q1 FY 2011, both in terms of volume and value. The company is expected to grow in future from the increasing number of expansion projects in the steel sector, the main user of graphite electrodes. The graphite electrodes division contributes 78% to the company’s revenue.

–          Swaraj Engines Limited manufactures diesel engines, diesel engine components and spare parts. M&M currently holds 33.2% stake in Swaraj Engines while Kirloskar Oil holds 17.39%.

–          KSB Pumps makes industrial pumps and industrial valves. It is part of The KSB group.

–          Hindustan Unilever saw its quarterly net profit dip 1.8 percent on slow volume growth from a year earlier and higher advertising and promotional expenses aimed at battling competition and protecting its market share. Commenting on the results, HUL Chairman Harish Manwani said: “Despite an intensely competitive environment, we have sustained double digits volume growth. We continue to invest fully to defend our strong leadership position and build competitive growth momentum through bigger and better innovations.”

–          In what could be its biggest acquisition, power equipment maker Crompton Greaves has offered $400 million (Rs 1,860 crore) for the transformer division of the US-based Emerson Electric Company, Business Standard reported.

–          Profit at NTPC Ltd unexpectedly declined 16.1 percent last quarter, the most in two years, after fuel costs rose as the government doubled natural gas prices.

–          NTPC Ltd’s plans to sell electricity in the spot market, under which around 65 per cent power generated from two of its projects is to be offered at a market-based price through short-term sales, is set to get the Centre’s nod shortly. The company — the country’s largest power generator — is in the process of working out a pricing policy for such sales. The merchant power business is risky by virtue of power not being tied-up upfront but offers lucrative returns in light of the electricity shortages across the country – The Hindu Business Line

–          NTPC Ltd seeks 14.5 million metric tons of coal for the year ending March 2012 in its largest annual import, a company official said. NTPC is importing the fuel directly for the first time rather than arranging for supplies through Indian state-owned trading companies such as MMTC Ltd. and the State Trading Corp. of India – Bloomberg Businessweek

Drops Model Portfolio

Drops Model Portfolio is built up based on the top buy list in my weekly portfolio review. If you have been investing following my Good Buy List as above, now you would have accumulated shares of 15 companies. By investing weekly with an amount of Rs. 5,000 per transaction, we are building a portfolio of 15-20 companies! As of end of the month, the average investment period is 1.91 months and gave a return of 4.23%. Download the spreadsheet for more information.

Last week there were 5 companies in good buy list. Since Top Ten holding is 75% of the total value and all except Dr. Reddy’s are already in the top ten holding, only Dr. Reddy’s was taken as bought in the last week.

The top 5 companies:

Company No. of Shares Market Value Return % Weight Rank
Bharti Airtel 36 11,048.40 9.86% 11% 1
Crompton Greave 39 10,764.00 7.08% 11% 2
NIIT Tech 58 10,425.50 5.65% 10% 3
NTPC 50 9,930.00 -0.74% 10% 4
Cadila Healthcare 9 5,704.20 13.38% 8% 5

Top gainers to date:

Company No. of Shares Market Value Return % Weight in Portfolio % Rank in Portfolio
Geometric 80 5,700.00 15.10 6 6
Cadila Health 9 5,704.20 13.38 6 5
Bharti Airtel 36 11,048.40 9.86 11 1
Mahindra & Mahindra 8 5,292.00 9.50 5 9
HUL 21 5,273.10 8.77 5 10

Top losers!

Company No. of Shares Market Value Return % Weight in Portfolio % Rank in Portfolio
Hero Honda 3 5,446.20 -4.70 5 7
Suzlon Energy 85 4,802.50 -3.67 5 15
Tata Communication 18 4,869.00 -2.56 5 13
Dr. Reddy’s 4 5,410.40 -0.90 5 8
Gail 11 4,820.00 -0.80 5 14

Valappil’s Portfolio

Return (%)

Period Valappil’s Portfolio BSE Sensex NSE Nifty
This month 0.10 0.95 1.05
This Year 5.80 2.31 3.20
Since 1-1-2009 116.63 85.22 81.40
Since 1-1-2008 45.60 -11.57 -11.71
Since 1-4-2007 80.89 36.69 40.46

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 14 3 Years 67
Tata Global Beverages FMCG 9 1.75 Years 118
Bharti Airtel Telecom 8 7 months 6
Maharashtra Seamless Metal 6 1 month 1
NTPC Power 6 10 months -1

Shares I bought this month

Company Average Price
Maharashtra Seamless 388.88
NIIT Tech 176.30
NTPC 198.28
GAIL 449.20
Dr. Reddy’s 1,360.00
HUL 262.20

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 144 27 months
Dabur India 148 40 months
Tata Tea 118 21 months
Berger Paints 93 42 months
Infosys 67 36 months

Archive of previous portfolio reviews