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

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>