Weekly Portfolio Review: 18 September 2010

BSE Sensex closed the week 4.2% higher which is the biggest up-move in the last 10 months. Sensex beat me in leaps and bounds this week which brought the gain on Sensex close to the gain on my portfolio on year to date basis. It happened because the major gain in Sensex this week came from Banking and Realty sector in which I do not hold any shares! Now year to date gain on my portfolio and Sensex stands at 12%!

Berger Paints, Gujarat Gas, Suzlon Energy and Reliance were largest contributor of gain in the month so far for me while Hero Honda was in negative. Hero Honda is still in the grave uncertainty and I will be waiting until the cloud is cleared before buying further though I would prefer to hold what I already have. Please read the piece in which I have compiled news reports on Hero Honda.

Good buys in my watch list

Even though there are some companies in my watch list that still have potential and available at good price to buy, I would prefer to hold on for some time. It is in such a speed that stock market soared during the last couple of weeks and the euphoria may not last for so long.

News Update

Suzlon

–          China will make up about a third of Indian wind turbine maker Suzlon Energy Ltd’s total business by 2015, its chief said, helped by Beijing’s strong incentives to promote clean energy. China accounts for about 10 percent of the group’s total revenue. Research by China Wind Energy Association has projected that China would expand its wind power installed base by between 108 GW and 132 GW by 2020. – Reuters

–          Wind turbine-maker Suzlon Energy today said its subsidiary, REpower, will supply three turbines to Sweden’s Klagerup Kraft AB, to be installed by 2011. REpower Systems, in which Suzlon Energy is the majority shareholder with a 90 per cent stake, has signed an agreement with Klagerup Kraft AB for delivery of three wind turbines to Sweden, an official statement said. – Business Standard

Hero Honda

–          The Munjal family-promoted Hero group is likely to purchase the entire stake of Honda Motor Co in their joint venture Hero Honda Motors Ltd through a special purpose vehicle incorporated in Singapore. The group is also in talks with three international funds to offload a part of its stake in the special purpose vehicle, a source said. – DNA

–          KKR & Co., TPG Capital, Carlyle Group and Bain Capital LLC are competing to acquire a part of Honda Motor Co.’s stake in India’s biggest motorcycle maker, according to five people with direct knowledge of the situation. – Bloomberg

Bharti Airtel

–          India’s top mobile phone firm Bharti Airtel took the initial steps to replicate its hugely successful outsourcing model in Africa by awarding a $1.5-billion contract to IBM for managing its IT requirements across 16 countries in the continent. – The Economic Times

–          Bharti Airtel is in talks with other mobile operators, including Vodafone Essar and Idea Cellular, to form a strategic alliance to offer third generation services on a pan-India level. The alliance has been made necessary because none of the operators has won 3G spectrum in all the circles. While Bharti has won spectrum in 13 circles, Vodafone has 3G airwaves in nine and Idea in 11 circles. – Business Line

–          India added over 13.5 million new GSM mobile subscribers in August, with Bharti Airtel adding a little over two million users to achieve close to 30 per cent market share. The total GSM subscriber base stood at over 481 million in August this year, a growth of 2.89 per cent over the month of July, Cellular Operators Association of India ( CAOI) said in its latest figures. Country’s largest private telecom firm Bharti Airtel added a little over two million subscribers to take its total user base to 141.25 million and market share to 29.33 per cent. – Times of India

–          Bharti Airtel has become the first mobile operator in the country to get a licence from the Reserve Bank of India to start mobile payment services. This service will allow Airtel subscribers to exchange physical cash for virtual money which can be stored on mobile phones to pay for goods and services for transaction value less than Rs 5,000. Once the user loads up his phone with prepaid cash he can walk into specified merchant locations and purchase goods and services.

–          Bharti Airtel will sell the mobile phone towers of its African operations to arm Bharti Infratel, raising badly-needed cash and taking a big step towards replicating the outsourced business model that has underpinned its growth in India. The deal is expected to be sealed for Rs 12,000-15,000 crore by December 2010, two persons with direct knowledge of the proposed transaction said, adding that Bharti Infratel will in turn raise money by selling stakes to sovereign and private equity funds. Bharti Infratel is owned 90% by India’s largest cellphone service provider. – The Economic Times

NTPC

–          NTPC Ltd plans to produce coal from its captive mine in Jharkhand by the next financial year. “We have just got the environment clearance and we hope to produce coal from Pakri Barwadhi mine in 2011-12,” said the new Chairman and Managing Director, Mr Arup Roy Choudhury. – Business Line

–          NTPC plans to add 9,500 mega watt of gas-based power generation capacity in the 12th Five Year Plan beginning Apr 2012, chairman and managing director Arup Roy Choudhury said on Friday. “We are talking to the government for gas linkages and are in advanced stage,” Roy Choudhury told reporters. NTPC has capacity to generate 32,000 mw power currently out of which 18% is gas-based and the remaining is coal-based. – The Financial Express

Interesting Reading

HUL’s steady ride may upset co’s buyback plans

Shares of Hindustan Unilever (HUL) have been trading within kissing distance of the maximum buyback price at Rs 280 announced by the company in June this year. This has triggered speculation in the market that the company could revise the buyback price upwards, if the stock stayed above Rs 280. But the company has made it clear that it will not buy back shares, if the price exceeds that limit. http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/HULs-steady-ride-may-upset-cos-buyback-plans/articleshow/6556347.cms

European wind power, Indian technology

A century and a half ago, Siemens, Europe’s largest engineering company, changed the face of global communication by laying a telegraphic cable from London across the North Sea and onwards to Calcutta, then the capital of India. Next week, an Indian engineering company will proclaim its own feat of electrical engineering beneath the choppy waters of the North Sea in one of the marvels of the new age: renewable energy. Crompton Greaves, one of India’s largest electrical engineering companies, is building, as part of a wider consortium, one of Europe’s largest and deepest offshore wind farm projects, 50 kilometres off the coast of Belgium. http://blogs.ft.com/beyond-brics/2010/09/10/european-wind-power-indian-technology/

My Portfolio

Return (%)

Return
My Portfolio BSE Sensex NSE Nifty
This Week 0.93% 4.23% 4.34%
This month 5.59% 9.03% 8.93%
This Year 12.03% 12.20% 13.15%
Since 1-1-2009 129.38% 103.12% 98.88%
Since 1-1-2008 54.17% -3.03% -3.20%
Since 1-4-2007 91.54% 49.90% 53.99%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 10 2.85 Years 78
Tata Global Beverages FMCG 7 1.80 Years 130
Bharti Airtel Telecom 7 8 months 23
HUL FMCG 6 3 Months 10
KSB Pumps Engineering 6 1 month -2

Shares I bought this month

Company Average Price
Dr Reddy 1,363.00
KSB Pumps 562.99
Hero Honda 1709.70
Maharashtra Seamless 378.95
Hindustan Zinc 1140.86
HUL 279.15

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 225 2.3 Years
Dabur India 176 4.4 Years
Tata Tea 130 1.8 Years
Berger Paints 184 3.5 Years
Infosys 78 2.9 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
Hero Honda -5 3 months
Hindustan Zinc -5 1 month
Mangalam Cement -4 1 month
Swaraj Engines -3 1 month
Maharashtra Seamless -3 2 months

Archive of previous portfolio reviews


One thought on “Weekly Portfolio Review: 18 September 2010”

  1. Markets may pull back till 5400 and surge again, be cautious with your longs and buy only when markets pull back. Markets have to break 4700 decisively in September itself, else NIFTY can reach 6536 in next 3 months before crash ensues

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