Weekly Portfolio Review: 04 September 2010

162% return! Anybody will be tempted with such a recommendation to buy more and more shares of those companies. I have got a couple of recommendations that anticipate more than 100% return in 2-3 years. These recommendations are from reliable and professional equity researchers and I have good faith on them. However these reports and recommendations are based on various assumptions and estimates (not rumours and speculation of course). So things can go wrong. So I decided to have some control and limit on how much exposure I can have based on a single research product. Anyway, I have set limits to avoid concentration on a few companies or sectors. So, I would strongly suggest you to avoid over exposure to few companies or sectors. Diversify into a reasonable number of companies and sectors. Once you have built the base, you can add more of those which are already in your portfolio. You may miss out opportunities, but you can substantially reduce the risk. Some people may rubbish the idea of investing small amount in a company! Many drops make an ocean.

Past week ended with a gain of 1.31% in BSE Sensex and 1.34% NSE Nifty and 2.08% in my portfolio. My year to date gain is 8.30% while that of BSE Sensex is 4.24% and NSE Nifty 5.27%. In my last review, I mentioned it was Suzlon who stole a major chunk of my gain during the year. Afterward in the last two days, Suzlon gained 7.99%! Yes, it was on a rumour that Reliance would buy a stake in Suzlon which has been denied by Reliance later.  In the year largest contributors of gain for me remain Tata Global Beverages, Gujarat Gas and Dabur India.

Good buys in my watch list

Scipt Sector Target CMP Margin
Mangalam Cement Cement 400.00 152.90 162%
Graphite India Engineering 200.00 94.10 113%
Swaraj Engines Auto Ancil 850.00 408.85 108%
Maharashtra Seamless Metal 727.00 378.50 92%
KSB Pumps Engineering 1,072.25 573.50 87%
Hero Honda Auto 3,069.00 1,736.15 77%
HLL FMCG 469.00 272.05 72%
Hindustan Zinc Metal 1,730.00 1,081.55 60%
Reliance Petro 1,450.00 925.60 57%
Dr. Reddy Pharma 2,106.00 1,387.80 52%

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 2.08% 1.31% 1.34%
This month 2.08% 1.31% 1.34%
This Year 8.30% 4.24% 5.27%
Since 1-1-2009 121.76% 88.72% 85.03%
Since 1-1-2008 49.05% -9.90% -9.95%
Since 1-4-2007 85.18% 39.27% 43.27%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 11 2.80 Years 66
Tata Global Beverages FMCG 8 1.80 Years 129
Bharti Airtel Telecom 7 8 months 17
Gujarat Gas Energy 5 2.30 Years 181
HUL FMCG 5 3 months 10

Shares I bought this month

Company Average Price
Dr Reddy 1,363.00
KSB Pumps 547.75

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 181 28 months
Dabur India 166 53 months
Tata Tea 129 22 months
Berger Paints 125 42 months
Infosys 66 34 months

Top 5 most loss (absolute)

Company Return % Average Holding Period
Hero Honda – 8 4 months
Mangalam Cement – 6 1 month
Graphite India – 6 1 month
Swaraj Engines – 5 1 month
Hindustan Zinc – 5 2 weeks

Note that all those which are in loss are less than one year in my holding.

Archive of previous portfolio reviews

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