Portfolio Review: 9 October 2010

BSE Sensex dipped 0.95% and NSE Nifty 0.65% in the week after the five-week rally and my portfolio gained 0.35% during the week. In the year to date, the gain in my portfolio is 15.13%. In the year 2010, the 65% of my total gain came from the 5 companies – Gujarat Gas, Infosys, Tata Global Beverages, HUL and Dabur India. Top 5 companies in terms of market value in my holding are Infosys, Tata Global Beverages, Bharti Airtel, HUL and Hero Honda.

Good buys in my watch list

Script Sector 3 Years Target CMP Margin
Maharashtra Seamless Metal 737.00 398.30 85%
Hero Honda Auto 3,101.00 1,833.75 69%
HLL FMCG 475.00 295.85 61%
Divis Laboratories Pharma 1,094.00 726.65 51%
Tech Mahindra IT 1,112.00 765.95 45%

News Update

Tata Communications

Tata Communications on Thursday launched InstaCompute and InstaOffice to offer productivity enhancing services to Indian businesses. This marks the company’s expansion in to the cloud space to deliver self-service, pay-as-you-use IT application and data centre infrastructure services, accessed through the Internet. – The Hindu 2010 October 07

Tata Communications expects its international operations, that contribute 65% to the overall revenues of the company, to turn profitable in the next two years. Its president and COO, Vinod Kumar, said, “We expect to break even in the next two years. The wholesale and enterprise services are expected to grow 25% and these will accelerate our growth.” – The Financial Express, 2010 October 09

Hero Honda

Hero Honda plans to set up a fourth manufacturing unit in the Baddi-Barrotiwala-Nalagarh industrial belt of Himachal Pradesh, on the expectation that it will exhaust its installed capacity in the current fiscal year. The world’s largest two-wheeler maker by volumes has sought the Himachal Pradesh government’s help in acquiring land for the project, which includes a mother plant and ancillary units. – The Economic Times, 2010 October 08

Mahindra & Mahindra

Mahindra & Mahindra (M&M), the country’s largest utility vehicles manufacturer, is planning to launch a sub-100 cc motorcycle. The bike, which will be the first of its kind in India, will help company carve out a niche of its own in the highly competitive motorcycle market in India. – The Financial Express, 2010 October 07

Auto major Mahindra & Mahindra (M&M) on Friday said it has advanced the period for redeeming the outstanding Foreign Currency Convertible Bonds (FCCBs) worth USD 141.2 million to this year from earlier April 14, 2011. – The Economic Times, 2010 October 08


Noting that a thermal power plant near human habitat and on agricultural land was not viable, a Central green panel has refused to give approval to the National Thermal Power Corporation (NTPC) to set up a 1320 MW coal-based project in Madhya Pradesh. The Public Sector Unit had proposed 2×660 MW coal based thermal power plant over 1000 acres of land in Jhikoli and Tumra villages in Narsinghpur district.  – The Hindi, 2010 October 08

The Centre will compensate NTPC to the tune of Rs 600 crore for cancellation of its 600 megawatt hydropower project at Loharinag-Pala in Uttarakhand, Power Minister Sushil Kumar Shinde said on Friday. NTPC has so far invested about Rs 600-crore on the project and placed orders worth Rs 2,000-crore for equipment. – The Indian Express, 2010 October 08

State-owned NTPC today said it may invest over Rs 10,000 crore to set up a 2,640 MW thermal power project at Gidarbaha in Punjab. – The Economic Times, 2010 October 08


Public sector power equipment manufacturer Bharat Heavy Electricals Ltd. (BHEL) has bagged an order from the Karnataka Power Corporation Limited (KPCL) for setting up 700 MW supercritical Unit-3 at the Bellary Thermal Power Station (TPS) in Karnataka on a turnkey basis. The company won the bid for the Rs.3,700-crore contract in an international competitive bidding process, according to a BHEL release. – The Hindu, 2010 October 08


State-owned gas utility GAIL India Ltd today placed orders worth Rs 677 crore for laying a gas pipeline from Dabhol in Maharashtra to Bangalore.  With this, within the last 3 months GAIL has placed orders worth about Rs 2,000 crore for both line pipes and pipeline laying to enable swift project implementation, a company press statement said here. – The Economic Times, 2010 October 06

Suzlon Energy Ltd

Suzlon Energy Ltd., India’s largest maker of wind turbines, said it plans to install 800 megawatts of wind energy plants in South Africa over the next two years as the country looks to reduce its power shortage. – Bloomberg Business Week, 2010 October 06

Dr Reddy’s Laboratories

Dr Reddy’s Laboratories is likely to see a major upside coming its way in the form of olanzapine, a drug to treat schizophrenia and bipolar disorder. Currently being marketed under the brand Zyprexa by Eli Lilly, the drug is seen having sales of $1 billion. Eli Lilly has the patent for it now, but this would expire in 2011, and Reddy’s is expected to launch it in the fourth quarter next year. – DNA, 2010 October 05

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 0.35% -0.95% -0.65%
This month 1.93% 0.90% 1.22%
This Year 15.13% 15.95% 17.35%
Since 1-1-2009 135.74% 109.91% 106.27%
Since 1-1-2008 58.45% 0.21% 0.39%
Since 1-4-2007 96.85% 54.91% 59.71%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 10 2.91 Years 84
Tata Global Beverages FMCG 7 1.90 Years 149
Bharti Airtel Telecom 6 9 months 21
HUL FMCG 6 3 Months 16
Hero Honda Auto 5 4 months -1

Shares I bought this month

Graphite India 93.61
Mangalam Cement 160.87
Ess Dee Aluminium 491.95
Opto Circuits 309.05

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 212 2.4 Years
Dabur India 168 4.5 Years
Tata Tea 149 1.9 Years
Berger Paints 176 3.6 Years
Infosys 84 2.9 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -6 1 month
Graphite India -5 2 months
Opto Circuits -1 0 month
Hero Honda -1 4 months
Tata Communications -1 9 months

Archive of previous portfolio reviews

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