Weekly Portfolio Review: 3 October 2010

BSE Sensex closed the week 1.87% higher and NSE Nifty 1.88% and my portfolio gained 1.58%. When the three quarters of 2010 passed, return on my portfolio stands at 14.73%. In the year 2010, the 68% of my gain came from the 5 companies – Gujarat Gas, Infosys, Tata Global Beverages, HUL and Dabur India. Top 5 companies in my holding are Infosys, Tata Global Beverages, Bharti Airtel, HUL and Hero Honda.

Good buys in my watch list

Script Sector Target PoR CMP Margin
Mangalam Cement Cement 400.00 204.00 160.25 150%
Graphite India Engineering 200.00 79.00 92.65 116%
Swaraj Engines Auto Ancil 850.00 428.00 423.40 101%
Ess Dee Aluminium Packaging 942.00 490.00 492.45 91%
Divis Laboratories Pharma 1,094.75 755.00 702.30 56%
Hindustan Zinc Metal 1,730.00 1,203.00 1,110.70 56%
Opto Circuits Healthcare 450.00 316.00 301.00 50%

News Update

Mahindra and Mahindra

Mahindra and Mahindra Ltd (M&M), India’s largest utility vehicle maker by unit sales, on Thursday made its entry into the competitive motorcycle market by unveiling two models—the 106cc Stallio and the 300cc Mojo. The entry-level Stallio, priced at Rs. 41,199 (ex-showroom, Pune), will compete with Hero Honda Motors Ltd’s Splendor and Bajaj Auto Ltd’s Discover, among others. The Mojo, aimed at the premium luxury segment, will cost Rs. 1.75 lakh, (ex-showroom, Pune). M&M has 370 sales outlets for two-wheelers, and is expected to increase the network to 400 by October. –  Livemint.com 30 September 2010

Auto-maker Mahindra & Mahindra reported its highest ever sales in a month at 35,177 units in September, an increase of 23.71 per cent over the same period last year. Total sales of M&M utility vehicles, including Scorpio, Xylo, Bolero and Pick-Ups, stood at 16,537 units as against sales of 15,296 units in September 2009, up 8.11 per cent. Sales of the Logan sedan went up by 96.08 per cent to 1,000 units during the month, compared to 510 units in the same month a year ago. The company said sales of three-wheelers and Gio and Maxximo mini-trucks during September jumped by 40.90 per cent to 6,005 units from 4,262 units during the same month last year. – The Indian Express, 01 October 2010

Auto major Mahindra & Mahindra on Monday said it will raise prices of its all products by up to Rs 8,000 with effect from October 1 due to higher raw material costs and implementation of new emission norms. “This increase would be in the range of Rs 3,000 to Rs 8,000 depending on the model and will be effective from October 1, 2010,” Mahindra & Mahindra said in a statement. – The Times of India, 27 September 2010

Hero Honda

The country’s largest two-wheeler maker Hero Honda today reported a jump of 8.06 per cent in sales in September at 4,33,641 units. Besides, for the 5th consecutive time, the company has recorded more than 4 lakh dispatch sales in a single month. – Business Standard, 01 October 2010

The country’s largest two-wheeler maker, Hero Honda Motors Ltd, today launched a new version of its biggest selling motorcycle, Splendor, priced at Rs 39,950 and Rs 41,950 (ex-showroom Delhi). The new bike, Splendor Pro, has features such as a power start and a new engine and comes in two variants, the company said in a statement. – The Hindu, 27 September 2010

Dr Reddy’s Laboratories

Dr Reddy’s Laboratories expects U.S. revenue to more than double to about $1 billion by fiscal 2013 and is planning to expand its presence in emerging markets like Russia. Dr Reddy’s, India’s No. 2 drug maker by sales, plans to consolidate in Russia by acquiring more prescription generic drugs. – Reuters, 29 September 2010

Hindustan Unilever

Hindustan Unilever (HUL) has forayed into the retail cafes segment to promote its beverages and food brands, in a significant brand extension to capitalise on the increasing trend of eating out. The FMCG major is test-marketing ‘Lipton Cafes’ and kiosks across the education, travel, corporate and leisure channels in key cities. While it is principally a beverages business, the cafés also sell other HUL products like soups. They also offer food items like pastries and cakes at locations in airports and malls. Currently, HUL has over 40 Lipton Cafes (with seating arrangement) and kiosks as pilot models in India. – The Financial Express, 29 September 2010

Suzlon Energy

Suzlon Group Company, REpower Systems, wind turbine manufacturer, said on Wednesday it signed a contract with German wind farm project developer Denker and Wulf AG, to set up, operate and maintain wind power plants with the capacity of generating 74.8 megawatts of power. The 74.8 megawatt (MW) project will be constructed by 2012. The contract includes a 15-year integrated service package, which covers project servicing and maintenance, in addition to delivery and installation of the turbines. – International Business Times, 29 September 2010

Indian wind turbine maker Suzlon Energy is in talks to buy the remaining nine percent stake in German unit REpower Systems AG, its chief financial officer said on Monday. – Reuters, 27 September 2010

Opto Circuits India Ltd

Opto Circuits India Ltd. plans to spend 7.5 billion rupees ($167 million) over three years to set up two medical equipment factories in India and Malaysia as the global incidence of diabetes and heart disease rises. People are becoming more aware of lifestyle diseases, said Vinod Ramnani, managing director at Opto Circuits, India’s largest domestic medical equipment maker. “That is the main driver” for growth, he said. – Bloomberg, 30 September 2010

Interesting Reading

M&M is not a conglomerate; it’s a federation

In an interview, Mahindra answers critics who say M&M is spreading itself too thin by entering too many areas—two- and three-wheelers, tractors, utility vehicles, cars, light commercial vehicles, trucks and even aeroplanes, and offers insights into his leadership style. http://www.livemint.com/2010/09/29205723/MampM-is-not-a-conglomerate.html?atype=tp

Mahindra & Mahindra: The Italian job

Mahindra & Mahindra is set to launch its range of motorbikes by this month-end. It had launched scooters last year, leveraging its Kinetic purchase. With incumbents well-entrenched in the market, Mahindra & Mahindra has started on an offensive even before the launch. “It had to go aggressive with a bevy of bikes because it has to break the clutter,” says PricewaterhouseCoopers Leader (automotive practice) Abdul Majeed. http://www.business-standard.com/india/news/mahindramahindraitalian-job/409208/

Ess Dee set to take on Hindalco in household aluminium foils market

Ess Dee Aluminium, which acquired India Foils from Sterlite Industries in 2008, is poised to mark its maiden entry into the retail market for household aluminium foils, pitching it against the industry leader Hindalco Industries . Ess Dee’s foray into foils comes at a time when global aluminium giants, like Novelis, have decided to shut their foils unit in the UK and consolidate operations across Europe. Earlier, Alcoa too had divested Reynolds, its packaging and consumer business best known for the ‘Reynolds’ foil wrap. http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals–mining/Ess-Dee-set-to-take-on-Hindalco-in-household-aluminium-foils-market/articleshow/6550191.cms

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 1.58% 1.87% 1.88%
This month 1.58% 1.87% 1.88%
This Year 14.73% 17.06% 18.12%
Since 1-1-2009 134.91% 111.93% 107.62%
Since 1-1-2008 57.89% 1.18% 1.05%
Since 1-4-2007 96.16% 56.40% 60.76%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 10 2.91 Years 86
Tata Global Beverages FMCG 6 1.90 Years 131
Bharti Airtel Telecom 6 9 months 26
HUL FMCG 6 3 Months 21
Hero Honda Auto 6 4 months 0

Shares I bought this month

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 220 2.4 Years
Dabur India 174 4.5 Years
Tata Tea 131 1.9 Years
Berger Paints 175 3.6 Years
Infosys 86 2.9 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
Divis Laboratories -3 1 month
KSB Pumps -3 1 month
Graphite India -7 2 months
Swaraj Engines -2 2 months
Tata Communications -8 9 months

Archive of previous portfolio reviews

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