Weekly Portfolio Review: 11 September 2010

How do you track your investment in shares? Most of the brokers provide a portfolio tracker integrated to its online trading platform. It is enough for an average retail investor. The transaction and current market price will be automatically updated in the system. If you are so enthusiastic that you don’t mind spending some extra time in updating your transaction on another system, there are many paid and free online service to track and manage your investments. Those provide tools to analyse your investment with real time data including news related to shares in your portfolio. One such comprehensive and free portfolio tracker is provided by www.moneycontrol.com. You can also manage your portfolio with your own spreadsheet or download one here.

Indian benchmark indexes BSE Sensex and NSE Nifty surged over 3% this week. My portfolio gained 4.62% in the month to date and 11% year to date. Gujarat Gas, Suzlon Energy and Blue Star were largest contributor of gain in the month so far for me while Hero Honda was in negative. I bought Hero Honda, KSB Pumps and Maharashtra Seamless this week. This made Hero Honda and Maharashtra Seamless into my top 5 holding. Uncertainty about the parting of joint venture of Hero group and Honda still remain, though both parties have denied it. In case the Honda leaves the JV, the stock price may tumble!

Good buys in my watch list

Script Sector Target CMP Margin
KSB Pumps Engineering 1,072.25 572.45 87%
HUL FMCG 470.00 277.85 69%
Hindustan Zinc Metal 1,730.00 1,086.90 59%
Reliance Petro 1,450.00 957.95 51%
Dr. Reddy Pharma 2,106.00 1,401.50 50%

News Update

–          Mahindra & Mahindra (M&M), the country’s biggest sport utility vehicle (SUV) maker, is working on smaller fuel-efficient petrol engines to power its future growth, likely to be driven by overseas markets – Business Standard

–          Drug maker Dr Reddy’s Laboratories (DRL) has lined up investments worth around Rs 1,600 crore over the next two years for capacity expansion and building new capabilities. The company feels these investments will help it meet future growth requirements and become a $3-billion company by 2013. – Business Standard

–          Crompton Greaves Ltd said on Friday that it entered into pact with Spain-based ZIV Aplicaciones y Tecnologia, S. L (ZIV), for establishing a joint venture company in India, for the manufacture of sub-station automation systems. It is estimated that the total equity capital of the joint venture will be Rs. 10 crore, out of which the company will contribute Rs. 7 crore, for a 70 per cent shareholding. – Business Line

–          The Hero Honda stock is down six per cent over the last one week and over 15 per cent down over the last one month. The Street is worried about reports that Honda, the Japanese joint venture (JV) partner, may sell its stake in the company and exit to focus on its 100 per cent owned Indian subsidiary, Honda Motorcycles and Scooters India (HMSI). – Business Standard

–          FMCG major Hindustan Unilever (HUL), owner of well-known tea brand Brooke Bond, today launched a body to spread awareness, dispel “myths and misconceptions” existing around tea and educate people on its health benefits.

–          The number of mobile subscribers in the country crossed the 652.42 million mark in July, with the addition of 16.92 million connections, official data show. The growth in this category was led by Bharti Airtel, which added 2.6 million users to take its subscriber base to 139.2 million users. – The Times of India

–          Leading paint manufacturer Kansai Nerolac Paints (KNPL) on Tuesday said it plans to invest Rs 600 crore to enhance its production capacity by 50 per cent over the next three years.  The company has also appointed Bollywood superstar Shah Rukh Khan as brand ambassador for promoting its eco-friendly paints. – The Economic Times

–          India’s second largest paints maker Kansai Nerolac Paints is looking at an 18-20% sales growth for the 2010-11 fiscal. It had recorded a similar growth in 2009-10 when the company clocked a turnover of Rs 1,970 crore. The company, which holds a 12% market share in the decorative paints segment after Asian Paints, might go for a price hike post October. – The Financial Express

Interesting Reading

NTPC blues: Financial Express

NTPC, the other large PSE operating in the power segment, seems to be caught in a downward spiral. The company that was identified as a prize jewel and conferred the Maharatna status only recently has seen its fortunes dip sharply, mainly on account of growing competition from private sector units. Although NTPC was to commission an additional capacity of 9,220 mw by the middle of the Eleventh Plan, it was able to set up only 3,730 mw during the period.

Bharti Airtel: The making of a media conglomerate – Business Standard

Is Bharti Airtel India’s fourth-largest media company? If estimates are right, then its revenues from selling music downloads, DTH services, IPTV and digital media outsourcing were upwards of Rs 2,900 crore in March 2010. That is about 7 per cent of its Rs 41,829 crore revenues that year. This number puts India’s largest telecom operator right at the top of the media big league. The interesting part is not just the size of its media play, but the products and services that have taken Bharti Airtel to this position. Unlike other media biggies, its fortunes come not from selling newspapers or broadcasting TV channels, but from redistributing music, selling television signals and being the back-end for a host of media companies.

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 2.49% 3.26% 3.01%
This month 4.62% 4.61% 4.40%
This Year 11.00% 7.64% 8.44%
Since 1-1-2009 127.27% 94.88% 90.61%
Since 1-1-2008 52.76% -6.96% -7.23%
Since 1-4-2007 89.78% 43.82% 47.59%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 10 2.85 Years 73
Tata Global Beverages FMCG 7 1.80 Years 139
Bharti Airtel Telecom 7 8 months 20
Hero Honda Auto 6 3 Months -6
Maharashtra Seamless Metal 5 2 months -3

Shares I bought this month

Company Average Price
Dr Reddy 1,363.00
KSB Pumps 561.38
Hero Honda 1709.70
Maharashtra Seamless 378.95

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 221 2.3 Years
Dabur India 173 4.4 Years
Tata Tea 139 1.8 Years
Berger Paints 130 3.5 Years
Infosys 73 2.9 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
Hero Honda -6 3 months
Graphite India -4 1 month
Hindustan Zinc -4 1 month
Mangalam Cement -3 1 month
Maharashtra Seamless -3 2 months

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