Portfolio Review: 23 October 2010

In the past week, BSE Sensex gained 0.20 per cent NSE Nifty gained 0.06% and my portfolio 0.27%.

In the year to date, the gain in my portfolio is 14.51%. During the year, top 5 contributor to the gain in my portfolio are Gujarat Gas, Tata Global Beverages (Tata Tea), Infosys, HUL and Dabur India. Suzlon Energy, KSB Pumps, NTPC, Managalam Cement and Tata Communication made loss.

Good buys in my watch list

Script Sector 3 Years Target Current Price Margin
Mangalam Cement Cement 400.00 157.10 155%
Graphite India Engineering 200.00 97.25 106%
KSB Pumps Engineering 1,072.00 524.30 104%
Ess Dee Aluminium Packaging 942.00 479.90 96%
Swaraj Engines Auto Ancil 850.00 443.50 92%
Maharashtra Seamless Metal 741.00 424.70 74%
Tractors India Ltd Construction 1,150.00 680.85 69%
Hero Honda Auto 3,115.00 1,855.10 68%
HUL FMCG 478.00 301.55 59%
Divis Laboratories Pharma 1,095.00 713.05 54%
Bharti Airtel Telecom 510.00 333.40 53%
Opto Circuits Healthcare 450.00 296.70 52%

News Update

Hindustan Zinc today posted 1.47 rise in profit at 948.72 crore for the second quarter of the current fiscal, as against the year-ago period, on improved demand and rising prices. The revenues moved up in Q2 FY11 to Rs 2,162.8 crore, around 21 per cent, as compared to Rs 1,789.5 crore in the same period last fiscal. – The Economic Times

Opto Circuits India, a developer and manufacturer of patient monitoring systems and interventional products, has entered into a merger agreement with US-based cardiology device maker Cardiac Science Corporation. It will acquire all of the outstanding shares of Cardiac Science for $2.30 per share or $54.6 million. – The Financial Express

Medical device manufacturer Opto Circuits Friday said has received quality certification  — CE (Communite European) Mark — from European authorities for coronary bare metal stent brands, enabling it to sell products in the continent. The CE (Communite European) Mark approval has been granted to the company’s German subsidiary Eurocor GmbH for its products eMagic and eFlex, Opto Circuits said in a statement. – Business Standard

Software services and consulting company, Geometric, on Friday said that it was strongly focusing on the European markets and hoped to bag some big orders from there by this year-end. Europe presently contributes around 22 per cent of the company’s total revenues.  It hopes to up this to around 30 per cent next year. The company clocked an 18.5 per cent growth in its revenues in Q2 FY 11 at 151.9-crore as against Rs 128-crore in the year-ago period and added nine new customers in the quarter. It now has a client-base of 108 of which 70 per cent are recurring. Geometric’s PAT grew 35 per cent at Rs 13.81-crore as against Rs 10.23-crore in the year-ago period. –The Economic Times

State gas utility GAIL India on Friday said it has commenced construction of its Karanpur– Moradabad–Kashipur–Rudrapur/Pantnagar natural gas pipeline. “The estimated investment on the project is Rs 250 crore,” it said. The design capacity of the pipeline will be 2.5 million standard cubic meters per day. – Business Standard

Biocon Ltd on Friday reported decent numbers for the quarter ended September.  Consolidated net revenues rose 17% year on year to Rs679 crore, while net profit jumped 20% to Rs89.22 crore, riding on higher growth in profits in its core bio-pharmaceuticals segment. – DNA

Bangalore-headquartered biotech firm Biocon has entered into a $350-million (Rs 1,550 crore) strategic alliance with drug-major Pfizer on Monday for marketing Biocon’s insulin products. The agreement includes the commercialisation of Biocon’s biosimilar versions of insulin and insulin analog products: recombinant human insulin, glargine, aspart and lispro, Biocon said. – The Economic Times

Pharma major Dr Reddy’s Laboratories has reported a net profit of Rs 290 crore for the second quarter ended September 30, up by 32 per cent over the same period last year. Its revenue during the quarter stood at Rs 1,870 crore as against Rs 1,840 crore in the same period last year. – Indian Express

State run BHEL on Wednesday said it has bagged contracts worth Rs 35 crore to set up grid-interactive solar power plants of 1100 kW capacity at eight locations in the union territory of Lakshadweep. BHEL’s scope of work in the contract envisages design, manufacture, supply and installation of new solar power plants of 1,100 kW – The Economic Times

Drug firm Cadila Healthcare today said its consolidated net profit rose by 29.49 per cent to Rs 170.8 crore for the second quarter ended September 30. Total income of the company rose to Rs 1,120.5 crore for the second quarter ended September 30, compared to Rs 949.8 crore in the same period last fiscal. For the six month period ending September 30, 2010, the company net profit was Rs 370.02 crore against Rs 256.71 crore in the year-ago period. – The Economic Times

Mahindra Two Wheelers reported its best monthly sales of 16,569 scooters in September, a whopping 451% increase year-on-year.

IT solutions provider NIIT Technologies said its net profit has increased by 35.6 per cent to Rs 43.5 crore for the second quarter, ended September 30. However, the company expressed concern over currency volatility, terming it “a headache” for the export-oriented Indian IT industry.  – The Financial Express

Interesting Reading

Munjals working on new branding strategy for Hero Honda

With the imminent exit of Honda from its 26-year old joint venture with the Hero group, the Munjals are now working on a new branding strategy for Hero Honda Motors, India’s largest motorcycle maker. The company has initiated talks with its brand managers on the new look of the brand which will drop “Honda” from all its advertising campaign.  http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/Munjals-working-on-new-branding-strategy-for-Hero-Honda/articleshow/6785632.cms

The Life After Separation

Sometimes heroes decide not to take sidekicks along because they are vulnerable to attacks. But in this story the sidekick (Honda) may be left holding all the aces as the Hero Honda joint venture heads for breakup. The engine and design technology come from Japan. Plus, Honda Motorcycle and Scooter India has already built up its distribution strength of 400 outlets in India and its sales have risen by 37 per cent as of April-September 2010. Hero will have to be wary of this fact because it has a technology review with Honda in 2014. Apart from paying royalties to Honda, which has risen by 28 per cent this year, Hero will have to come up with a product spec on its own if it is going to compete with original equipment manufacturer such as Bajaj and TVS. http://www.businessworld.in/bw/2010_10_22_The_Life_After_Separation.html

Cadila Healthcare: On a booster dose

Strong domestic performance, coupled with impressive growth in the US, helped Cadila Healthcare post revenue growth of 18.1 per cent year-on-year at Rs 1,117 crore in the September quarter. Cardio-vascular and respiratory care segment buoyed domestic revenues by 19 per cent to Rs 466.8 crore. Launch of 10 products during the quarter and a pick-up in the sales of H1N1 vaccine, too, helped earnings. The US business saw the launch of anticonvulsant drug Divalproex generics, which helped Cadila clock a business of Rs 226 crore from the region, up 41 per cent compared to the year-ago period. http://www.business-standard.com/india/news/cadila-healthcare-onbooster-dose/412341/

HUL’s appetite- experiments in marketing

In September 2010, women commuters in suburban Mumbai trains were in for a tasty surprise – they had Hindustan Unilever representatives serving out freshly cooked food prepared with Knorr Ready to Cook spice mixes. The ‘Baje ki Knorr Local’ campaign touched the right chord: the aroma of piping hot food was a treat for consumers enduring hours of travel after a hard day at work. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/HULs-appetite–experiments-in-marketing/articleshow/6790074.cms

FMCG firms on launch spree as demand revives

A new consumer product item hit the market every second day so far this year, signalling a bounce-back in new launches in the FMCG space after a couple of dull years. Hindustan Unilever, the country’s largest consumer products player, set the pace with 36 new products and variants as total launches in the first eight months increased 13% year-on-year. Dabur launched 11 products during the period, including Fem gold bleach, Odomos oil, Odonil air fresheners and new variants of Pudin Hara, Hajmola digestives and Vatika shampoo. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/FMCG-firms-on-launch-spree-as-demand-revives/articleshow/6795925.cms

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 0.27% 0.20% 0.06%
This month 1.39% 0.48% 0.60%
This Year 14.51% 15.47% 16.63%
Since 1-1-2009 134.48% 109.04% 105.00%
Since 1-1-2008 57.60% -0.20% -0.22%
Since 1-4-2007 95.79% 54.27% 58.73%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 9 2.91 Years 83
Tata Global Beverages FMCG 6 1.90 Years 141
Bharti Airtel Telecom 5 9 months 15
HUL FMCG 5 3 Months 18
Hero Honda Auto 5 4 months 0

Shares I bought this month

Company Avg Price
Graphite India 93.61
Mangalam Cement 160.87
Ess Dee Aluminium 491.95
Opto Circuits 309.05
Divi’s Laboratories 714.23
Tech Mahindra 758.80

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 215 2.4 Years
Dabur India 160 4.5 Years
Tata Global Beverages 141 1.9 Years
Berger Paints 151 3.6 Years
Infosys 83 2.9 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -9 1 month
Opto Circuits -5 1 months
Tata Communication -6 10 months
Mangalam Cement -4 2 months
Ess Dee Aluminum -4 1 months

Archive of previous portfolio reviews

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