Weekly Portfolio Review: 28 November 2010

Decline in Indian stock market benchmark index continued for the third week in a row now. BSE Sensex declined 2.29% to close at 19,137 and NSE Nifty 2.35% to close at 5,752 in the past week. The Sensex dropped 4 out of 5 working days. On Monday market was up on Irish rescue deal. Then next four days saw the sharp falls as bribery scandal involving the officials of PSU banks and financial institution unearthed.

My portfolio’s return in the past week was -2.74% and the year to date return stands at 6.66%. Shares of 11 companies in my portfolio declined more than 5% while 4 companies gained more than 2% in the past week. Amara Raja Batteries was biggest saver with 6.36% gain.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
Mangalam Cement Cement 400.00 125.50 219%
Graphite India Engineering 200.00 85.95 133%
KSB Pumps Engineering 1,072.00 505.00 112%
Tata Sponge Iron Metal 700.00 347.95 101%
Maharashtra Seamless Metal 752.00 384.80 95%
Ess Dee Aluminium Packaging 942.00 487.05 93%
Swaraj Engines Auto Ancil 850.00 470.35 81%
Tech Mahindra IT 1,074.00 625.05 77%
Divis Laboratories Pharma 1,095.00 617.80 77%
Opto Circuits Healthcare 450.00 265.55 69%
Tractors India Ltd Construction 1,150.00 680.00 69%
NTPC Power 293.00 176.75 66%
HUL FMCG 485.00 293.40 65%
Honeywell Automation Engineering 4,100.00 2,482.75 65%
Amara Raja Batteries Auto Ancil 301.60 184.00 64%
Hero Honda Auto 3,151.00 1,936.40 63%

News Update

Dr Reddy’s Laboratories Limited has signed an agreement with GlaxoSmithKline (GSK), one of the world’s leading research-based pharmaceutical and healthcare companies, to buy the latter’s oral penicillin manufacturing facility at Tennessee in the US. The financial terms of the acquisition were not disclosed. The transaction is expected to be closed within the first half of calendar 2011.- Business Standard , 28 Nov. 10

Land acquisition for second phase of National Thermal Power Corporation (NTPC) power plant coming up near Mouda may run into trouble as farmers have scaled up their demand for compensation. They are now asking for Rs 25 lakh per acre compensation and job for one member of their family.  – Times of India, 26 NOV 2010

The National Thermal Power Corporation (NTPC), India’s largest power producer, has added a 500 MW coal-fired unit at Korba in Chhattisgarh, a company statement said Friday. ‘The new 500-MW unit of NTPC’s Korba super thermal power station in Chhattisgarh has been synchronised with the grid,’ the statement said. – Sify

NTPC has set up a joint venture with the Asian Development Bank and Japan’s Kyuden International Corporation to develop renewable energy projects with a capacity of 500 Mw over the next three years. NTPC will have 50 per cent stake in the JV, while ADB and Kyuden International will contribute 25 per cent each towards the equity share capital of the company, the power company said in a statement. The initial authorised share capital will be Rs 6.5 crore and the paid-up share capital Rs 1 crore. – Sify, Nov 25, 2010

Bharti Airtel Ltd.’s Kenyan mobile- phone unit will begin rolling out 3G services in the first quarter of 2011 as part of a push for more customers and a return to profit at its unprofitable African operations.  New products will include e-mail and e-commerce services, Rene Meza, managing director of Airtel Networks Kenya Ltd., said in an interview yesterday in Nairobi, the capital. Airtel is considering subsidizing laptops and Internet-enabled handsets to drive data use in East Africa’s biggest economy, he said. – Bloomberg 23 Nov 2010

IT company Mphasis said its consolidated net profit rose by 20 per cent to Rs 1,090.75 crore for the year ended October 31, 2010, over the same period last year. Revenues rose to Rs 5,036.52 crore during the year ended October 31, against Rs 4,263.88 crore in the same period last year. – The Economic Times, 22 NOV 2010

Mahindra & Mahindra today said it has signed a definitive agreement with Ssangyong Motor Company Limited (SYMC) to acquire 70 per cent stake in the ailing South Korean auto maker at a total cost of USD 463 million (about Rs 2,105 crore). The company said in a statement that it expected the deal to be concluded by March 2011. – Times of India, 23 NOV 2010

Bharat Heavy Electricals Ltd. (BHEL) and GE India Industrial Pvt. Ltd. (GEIIPL), a 100% owned subsidiary of GE, USA, have joined hands for cooperation on Water Treatment Equipment. As per the agreement, BHEL and GEIIPL will jointly engineer and supply water treatment solutions for the Indian market. Over the term of the agreement, through joint working, BHEL will acquire the capability to address large water treatment systems based on GE Products, on its own. – Indiainfoline.com 22 NOV 2010

Eurocor GmbH, wholly-owned subsidiary of Opto Circuits India, announced today the launch of FREEWAY, the latest second-generation, percutaneous transluminal angioplasty (PTA) balloon technology designed for the treatment of critical limb ischaemia associated with peripheral arterial disease (PAD). – Indiainfoline.com 22 NOV 2010

Interesting Read

Dr Reddy’s expands horizon

Acquistion of GSK’s facility in the US marks entry into a new therapeutic segment. Already having a deal with GlaxoSmithKline (GSK) for marketing its products in various emerging markets, Dr Reddy’s Laboratories (DRL) had this week inked an agreement to buy the latter’s oral penicillin manufacturing facility at Tennessee in the US. Though the financial terms were not disclosed, the transaction is expected to be closed within the first half of calendar 2011.

http://www.business-standard.com/india/news/dr-reddys-expands-horizon/416319/

DoT gearing up to penalise telcos over network roll-out delays

Even as the government contemplates the imposition of penalties worth over Rs 135 crore on old telcos that have not completed network roll-out in circles allotted to them, the Telecom Ministry is likely to issue showcause notices to new operators for similar lapses. As per the revised figures, Bharti Airtel faces a penalty of Rs 31 crore, while the Tatas (CDMA operations) are likely to be asked to be paid liquidated damages of over Rs 40 crore.

http://economictimes.indiatimes.com/news/news-by-industry/telecom/DoT-gearing-up-to-penalise-telcos-over-network-roll-out-delays/articleshow/7005003.cms

Rural FMGC markets ready to go premium

Market research firm Nielsen has sounded out premium goods marketers to take country roads, saying the rural FMCG market will grow 10 times to $100 billion by 2025 and that the rural consumer is increasingly buying premium and convenience-oriented products.

http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/Rural-FMGC-markets-ready-to-go-premium/articleshow/6985029.cms

MphasiS joins billion dollar club

Indian IT and BPO services company MphasiS, which is majority-owned by HP, has achieved the milestone of $1 billion in revenues during the accounting year-ended October 31, 2010. The company posted revenues of Rs 5,037 crore ($1.09 billion) during the period with a growth of 18.1 per cent over the previous accounting year. The Bangalore-based company took about 12 years to achieve this. With sight on the next phase of growth and bring in better alignment in its business, MphasiS has also initiated a restructuring process in partnership with global consulting firm, Boston Consulting Group.

http://www.business-standard.com/india/news/mphasis-joins-billion-dollar-club/416044/

Bharti Airtel: An emperor sized operation

Bharti Airtel is an emperor sized operation in every sense of the term, starting with the standalone gross revenues of Rs 356 bn that it recorded, to its gross fixed asset base of Rs 442 bn (that makes it all possible), to its investment portfolio base of Rs 157 bn, to its gross working capital base of Rs 93 bn, to the humungous net cash flow of Rs 127 bn that it generated, to its 22 subsidiaries and fellow subsidiaries, 2 associates, 3 joint ventures and 18 companies where the management exercises control of some sort, to the Rs 8 bn in cash and bank balances, to the 43 companies that it had related party transactions with in FY10, and the Rs 7 bn in services that it rendered to these related parties and the Rs 41 bn in services that it received in return from these related parties.

http://www.equitymaster.com/outsideview/detail.asp?date=11/23/2010&story=2

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week -2.74% -2.29% -2.35%
This month -4.91% -4.47% -4.42%
This Year 6.66% 9.57% 10.59%
Since 1-1-2009 118.39% 98.37% 94.39%
Since 1-1-2008 46.79% -5.30% -5.39%
Since 1-4-2007 82.36% 46.39% 50.51%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3 Years 82
Tata Global Beverages FMCG 5 2 Years 111
KSB Pumps Engineering 5 3 Months -11
Mangalam Cements Cements 5 2 Months -20
Maharashtra Seamless Metal 5 4 Months -3

Shares I bought this month

Company Average Cost
Ess Dee Aluminium 490.76
Graphite India 93.19
Opto Circuits 297.70
Swaraj Engines 480.38
Tech Mahindra 757.83
Tractors India Ltd 710.47
Amara Raja Batteries 190.03
NTPC 197.65
Honeywell Automation 2,633.95
KSB Pumps 522.76
Mangalam Cements 146.60
Maharashtra Seamless 406.07
Tata Sponge Iron 372.62

Shares I sold this month

Company Average Price
Suzlon Energy 57.65
Blue Star 453.11
Kansai Nerolac 916.04

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 202 2.5 Years
Dabur India 137 4.5 Years
Tata Global Beverages 111 2.0 Years
Berger Paints 113 3.7 Years
Infosys 82 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
Tech Mahindra -18 1 month
BHEL -18 2 months
Tata Communication -23 10 months
Mangalam Cement -20 2 months
Divi’s Laboratories -15 2 months

Archive of previous portfolio reviews


Portfolio Review: 20 November 2010

After 4% decline in the previous week, Indian stock market benchmark index BSE Sensex dropped another 2.84% last week to close at 19585.44. NSE Nifty shed 2.99% in the week to close at 5890.30. The corruption scandal and global worries are cited as reasons for the decline. This week is beginning with political uncertainties in the wake of 2G scam!

My portfolio’s return in the past week was -2.18% and the year to date return stands at 9.66%. Shares of most of the companies in my portfolio declined in the past week with Berger Paints, Mangalam Cements, Tech Mahindra, Amara Raja Batteries and Reliance leading the losers! However Bharti Airtel and Hero Honda, which are in top 10 in my portfolio, gained more than 7% last week. The biggest news in my portfolio was the launch of new logo by Airtel.  The company crossed the significant milestone of 200 million customers.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
Mangalam Cement Cement 400.00 138.70 188%
Graphite India Engineering 200.00 92.30 117%
KSB Pumps Engineering 1,072.00 508.00 111%
Ess Dee Aluminium Packaging 942.00 487.00 93%
Tata Sponge Iron Metal 700.00 366.00 91%
Maharashtra Seamless Metal 750.00 392.50 91%
Swaraj Engines Auto Ancil 850.00 471.30 80%
Amara Raja Batteries Auto Ancil 301.60 173.00 74%
Tractors India Ltd Construction 1,150.00 676.55 70%
Divis Laboratories Pharma 1,095.00 669.50 64%
Tech Mahindra IT 1,112.00 680.75 63%
Opto Circuits Healthcare 450.00 277.10 62%
HUL FMCG 483.00 298.70 62%
NTPC Power 293.00 184.30 59%
BHEL Engineering 3,567.00 2,256.65 58%
Honeywell Automation Engineering 4,100.00 2,610.00 57%
Bharti Airtel Telecom 510.00 328.85 55%
Mphasis IT 841.00 561.15 50%

News Update

Dr Reddy’s Laboratories today said it has received approval from US health regulator to launch generic Zafirlukast tablets, used for treating asthma, in the American market. According to IMS health, Zafirlukast tablets had total sales of around USD 50 million in the US market for twelve months ended August 31, 2010. – Economic Times, 20 Nov 2010

India’s GSM subscribers base grew 3 per cent in October with the addition of 14.7 million subscribers with telecom giant Bharti Airtel alone signing over 3 million users. Bharti Airtel now gains a market share of 28.76 per cent, with 146.29 million subscribers — the highest in the country. Vodafone added 2.49 million subscribers in the country, a growth of 40 per cent as against 1.78 million the previous month to have a total of 118 million subscribers. – Economic Times

The world’s fifth largest telecom operator Bharti Airtel, has christened itself as ‘airtel’, launching a global campaign that would re-brand its operations across the world. On Thursday, company’s CMD Sunil Bharti Mittal lifted the veil off the new logo – an artistically written small ‘A’ above ‘Airtel’ with the letters in lower case – all in red against a white background. Subsequently, the brand name – Zain Telecom in Africa and Warid Telecom in Bangladesh would be changed to ‘airtel’. – The Times of India

GAIL (India) Ltd has struck a long-term natural gas supply deal with state-owned National Fertilisers Ltd and Gujarat Narmada Valley Fertiliser Company Ltd, which have decided to convert their manufacturing plants from naphtha to gas, a more efficient feedstock.  – The Financial Express

Looking to cash in on the boom in auto sales, domestic utility vehicle major Mahindra & Mahindra has lined up as many as seven new products in the passenger vehicle segment that will hit the roads over the next 15-18 months. The list includes an all-new premium SUV from its own stable and two from the recently-acquired Korean company Ssangyong , apart from new versions of Logan, the mid-sized passenger car. – The Economic Times

Anand Mahindra-led Mahindra Group, which entered aerospace last year, has zeroed in on yet another business opportunity.  The group has firmed up plans for getting into solar energy generation business and is looking to rope in a partner, which would bring in domain expertise as well as funding for the venture. – DNA

Crompton Greaves Ltd (CGL), a part of the $4 billion Avantha Group, has claimed that it has become the world’s first company to develop high range power product- 1200 KV Capacitive Voltage Transformer (CVT). The company has spent close to Rs.70 crore to develop this high range power product, which has been indigenously developed and manufactured at its state-of-the-art Nashik facility. – Business Standard

Opto Circuits (India) announced that Criticare Systems USA, the company`s wholly owned subsidiary has released its next-gen CO2N2O module. The module is a compact version of the proven Criticare Systems Poet series CO2 detection technology, which, using non-dispersive infrared technology, will measure inspired and expired CO2 and N2O gases. – Myiris

Interesting Read

Small commercial vehicles fly as rural demand strengthens

The small commercial vehicle (SCV) segment, which is growing at a rate of 18% annually on the back of strong demand from hinterland and boom in construction, retail and production sectors, has caught the fancy of commercial vehicle makers. Tata Motors is the dominant player with Ace while Piaggio Vehicles and Bajaj Auto are the other major companies.M&M has recently entered the segment with Maxximo, Force Motors and Ashok Leyland have lined up forays. General Motors plans to enter the segment in 2012. – http://www.dnaindia.com/money/report_smallcommercialvehiclesflyasruraldemandstrengthens_1468750

FMCG cos mull soap price hike

With increasing pressure on their margins, fast-moving consumer goods (FMCG) companies such as Godrej Consumer Products (GCPL) are considering taking a price hike on products like soaps. The cost of palm oil, a key raw material for making toilet soap, has risen by 30-35 % in one quarter. Although market leader Hindustan Unilever (HUL) has not yet passed on the cost escalation to consumers, industry analysts said it was only a matter of time before the company takes a price increase in toilet soaps. Read more: FMCG cos mull soap price hike – The Times of India http://timesofindia.indiatimes.com/business/india-business/FMCG-cos-mull-soap-price-hike/articleshow/6958162.cms#ixzz15vv5w18b

Unilever to halve ecological impact by 2020: Harish Manwani

Hindustan Unilever has embarked on a new journey, on the path of sustainable living. As part of Sustainable Living Plan, the FMCG major has chalked out a 10-year roadmap to halve its environmental impact in the form of reducing water usage and greenhouse gas emissions by 2020. The company, whose products touch the lives of 2 billion consumers around the world every day, in addition targets to source all its agricultural supplies including palm oil and tea from sustainable sources. http://www.moneycontrol.com/news/business/unilever-to-halve-ecological-impact-by-2020-harish-manwani_500360.html

FMCG cos see return of ‘premium’ demand

Two years after consumers began downtrading, or preferring cheaper alternatives to regular brands, the trend has reversed in the `1,30,000-crore FMCG industry. People are now uptrading, or buying premium products across personal care and foods segments, thanks to rising incomes and confidence. Companies such as Hindustan Unilever , Procter & Gamble, GlaxoSmithKline and Marico are responding to this new trend by promoting and launching a spree of premium brands across shampoos, skincare products, toothpastes, biscuits, breakfast cereals and fine cheese. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/FMCG-cos-see-return-of-premium-demand/articleshow/6944533.cms

GAIL to make waves via expansion, consolidation and diversification

GAIL India, the state-run gas transmission and marketing company, has charted a new corporate business plan up to 2020. The focus is on consolidation, expansion and diversification. It plans to increase turnover to Rs 1 lakh crore by 2020 from Rs 24,996 crore. It plans to consolidate presence in petrochemicals and renewable energy, allocate 15 per cent of annual capital expenditure for exploration and production (E&P), pick up equity in upstream LNG (liquefied natural gas) projects abroad, and pursue investments in shale gas projects in and outside India. Besides, GAIL India is keen to expand its city gas distribution business and undertake distributed generation projects along its pipelines. http://sify.com/finance/gail-to-make-waves-via-expansion-consolidation-and-diversification-news-equity-klpbFsaijha.html

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week -2.18% -2.84% -2.99%
This month -2.23% -2.23% -2.12%
This Year 9.66% 12.14% 13.25%
Since 1-1-2009 124.53% 103.02% 99.06%
Since 1-1-2008 50.92% -3.08% -3.12%
Since 1-4-2007 87.49% 49.83% 54.13%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3 Years 78
Tata Global Beverages FMCG 5 2 Years 122
HUL FMCG 5 4 Months 17
Hero Honda Auto 5 5Months 5
Graphite India Engineering 5 2 Months -5

Shares I bought this month

Company Average Price
Ess Dee Aluminium 484.19
Graphite India 93.19
Opto Circuits 297.70
Swaraj Engines 480.38
Tech Mahindra 757.83
Tractors India Ltd 710.47
Amara Raja Batteries 190.03
NTPC 197.65
Honeywell Automation 2,633.95
Mangalam Cement 147.00

Shares I sold this month

Company Average Price
Suzlon Energy 57.65
Blue Star 453.11
Kansai Nerolac 916.04

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 199 2.5 Years
Dabur India 145 4.5 Years
Tata Global Beverages 122 2.0 Years
Berger Paints 114 3.7 Years
Infosys 78 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -12 2 months
Tech Mahindra -11 1 month
Tata Communication -14 10 months
Mangalam Cement -13 2 months
BHEL -10 2 months

Archive of previous portfolio reviews


Portfolio Review: 13 November 2010

Indian stock market benchmark index declined sharply in the past week. BSE Sensex declined 4.04% to close at 20,157 and NSE Nifty 3.81% to close at 6,072. Some reports cited global worries of financial crisis and weak industrial output data as reasons for the crash. G20 summit in Seoul that concluded on Friday failed to take any reasonable action on the ongoing currency wars. Rate hike fears in China, payment default by Dubai group and Eurozone worries on Ireland’s worsening debt woes also added fuel to the fire.

My portfolio’s return in the past week was -2.65% and the year to date return stands at 12.11%. Shares of every company in my portfolio declined in the past week with Bharti Airtel, Berger Paints, Amara Raja Batterires, Bhel and TIL lead the decline.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
Mangalam Cement Cement 400.00 149.25 168%
Graphite India Engineering 200.00 93.70 113%
KSB Pumps Engineering 1,072.00 512.00 109%
Ess Dee Aluminium Packaging 942.00 488.00 93%
Maharashtra Seamless Metal 747.00 413.45 81%
Swaraj Engines Auto Ancil 850.00 484.40 75%
Bharti Airtel Telecom 510.00 306.05 67%
Tractors India Ltd Construction 1,150.00 695.55 65%
Amara Raja Batteries Auto Ancil 301.60 185.25 63%
HUL FMCG 482.00 301.55 60%
Honeywell Automation Engineering 4,100.00 2,581.50 59%

News Update

Costs linked to the newly acquired African operations and stiff competition at home have pulled down Bharti Airtel‘s net profit 27 per cent to Rs 1,661 crore during the second quarter ended September 2010 compared with Rs 2,263 crore in the corresponding period last year. This was the first full quarter of the African operations. – The Hindu Business Line

Bharti Airtel is going in for a mega brand change of Airtel for which the company will spend Rs 300 crores globally, sources close to the development said. The unveiling of the brand is expected next week. The new brand is expected to be splashed all across India, Africa, Sri Lanka, Bangladesh, Seychelles.  – The Economic Times

Bharti Airtel on Wednesday said it may look at listing its telecom tower subsidiary – Bharti Infratel. Bharti Infratel has 31,831 towers in 11 circles. According to analysts, the IPO can help Airtel unlock value in its tower infrastructure company. Passive infrastructure generated Rs 2,116 crore revenue for Bharti during the second quarter ended September, 30. – The Economic Times

A report that Bharti Airtel is eyeing Qualcomm’s wireless broadband business in Delhi is “sheer speculation”, Bharti’s CEO for India and South Asia said on Wednesday. – Reuters

Mahindra & Mahindra (M&M) on Thursday said that the company’s new tractors plant in South India will commence operations by financial year 2013. The plant, expected to come up close to Chennai, will produce both Swaraj and M&M brand tractors and have a capacity of 75,000 to one lakh units per annum. – The Financial Express

NTPC will commission the first unit of Stage-II expansion project of Simhadri Super Thermal Power Station by March 2011. Two units of 500 MW each in the first phase were synchronised in 2002. Simhadri, the first shore-based power plant, is adding two more units each with 500 MW by investing around Rs.5,000 crore. – The Hindu

India’s top power producer NTPC Ltd said on Friday its board had approved investing 31.94 billion rupees for a coal mining project in the east Indian state of Jharkhand. The coal block, which was allotted to NTPC in October 2004, will start production in 2012. – Reuters

Swiss drugmaker Hoffmann-La Roche (Roche) has sued Dr Reddy’s Laboratories (DRL) a fourth time, this time for patent infringement involving its osteoporosis drug Boniva (ibandronate sodium). Boniva has been a major revenue earner for Roche and the sales are estimated to be between $850 million and $1 billion. Various patents covering the drug are due for expiry between 2019 and 2023. Boniva, a once-a-month drug, is used in treating or preventing post-menopausal osteoporosis. – DNA

Amara Raja Batteries will invest nearly Rs 130 crore by September next year to hike production capacity in a phased manner and on other capital expenditures. The company, which is aiming to become a global brand also said it is considering the possibility of setting up a manufacturing unit overseas, preferably in Southeast Asia and Africa. – The Economic Times

Opto Circuits (India) Ltd. (OCI), India’s leading developer and manufacturer of patient monitoring systems and interventional products registered 30% growth in consolidated net sales to Rs. 331.38 crore for the quarter ended September 2010. Operating profit margins contracted by 360 basis points to 31.9% on the back of increase in manufacturing, Administrative & Marketing Expenses.  – IIFL

Divi’s Laboratories reported 15% decrease in consolidated net profit to Rs. 71.93 crore despite 13% increase in net sales to Rs. 255.31 crore for the quarter ended September 2010. Operating profit margins contracted by whopping 1330 basis points to 33.9% on the back of increase in manufacturing expenses and consumption cost. Thus, operating profit decreased by 18% to Rs. 87.84 crore. Other income increased by 67% to Rs. 5.63 crore. – IIFL

TIL Ltd [Formerly Tractors India] announced financial results for its half year & quarter ended 30th Sept, 2010. On a consolidated basis, during April – September 10-11, the company reported a total income of Rs. 6.42bn vis-à-vis Rs. 4.23bn in April-September last year, registering a growth of 52% over same period previous year. Profit Before Tax stood at Rs. 348mn vis-à-vis Rs. 249mn, showing a growth of 40%. Profit After Tax also grew to Rs. 243mn from Rs. 174mn, in the corresponding period- previous year, registering a growth of 40%. EPS stood at Rs. 24.31as on 30th September, 2010 vis-à-vis Rs. 16.65 as on 30th September, 2009. – IIFL

GAIL (India) plans a capex of Rs.40,000 crore for the next four years for undertaking various projects, including sourcing of LNG, a top company official said on Saturday. – The Hindu

Interesting Read

Bharti Airtel adds customers, not value

Bharti Airtel’s September 2010 quarter numbers raise doubts over the feasibility of adding new subscribers to the mobile network . The country’s largest telecom operator reported decent user additions during the quarter but failed to show any meaningful addition to the minutes of usage on its mobile network. … So far, Bharti’s stock has not participated in the broader stock market rally. It gained a meagre 2% in the past three months compared with the 14% gains in the benchmark Sensex. The benefits from the 3G launch expected in the next two quarters and a gradual turnaround in its African business are long term in nature. In the near term, however, the stock’s movement may be restricted given the lack of any fresh triggers.  http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/Bharti-Airtel-adds-customers-not-value/articleshow/6904529.cms

Hero Honda market share falls closer to 50% mark

The market share of India’s largest two-wheeler manufacturer Hero Honda Motors Ltd may slip to below 50% as competition heats up and production lags demand, say analysts. Amid talk of a possible exit by its Japanese partner Honda Motor Co. from the joint venture, the company’s market share in the motorcycle segment dropped to 52.9% at the end of the September quarter from 60.4% a year earlier, according to data from the Society of Indian Automobile Manufacturers. http://www.livemint.com/2010/11/09214824/Hero-Honda-market-share-falls.html?atype=tp

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week -2.65% -4.04% -3.81%
This month -0.05% 0.62% 0.90%
This Year 12.11% 15.41% 16.74%
Since 1-1-2009 129.54% 108.94% 105.19%
Since 1-1-2008 54.28% -0.25% -0.13%
Since 1-4-2007 91.68% 54.20% 58.88%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3 Years 80
Tata Global Beverages FMCG 6 2 Years 134
HUL FMCG 5 4 Months 18
Hero Honda Auto 5 5 months -2
Maharashtra Seamless Metal 5 4 months 5

Shares I bought this month

Company Average Cost
Ess Dee Aluminium 490.76
Graphite India 94.72
Opto Circuits 297.70
Swaraj Engines 482.21
Tech Mahindra 757.83
Tractors India Ltd 733.96
Amara Raja Batteries 197.71
NTPC 197.65

Shares I sold this month

Company Average Price
Suzlon Energy 57.65
Blue Star 453.11

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 204 2.5 Years
Dabur India 143 4.5 Years
Tata Global Beverages 134 2.0 Years
Berger Paints 136 3.7 Years
Infosys 80 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -11 2 months
Amara Raja Batteries -6 0 month
Tata Communication -10 10 months
Mangalam Cement -8 2 months
TIL -5 0 month

Archive of previous portfolio reviews


Portfolio Review: 6 November 2010

Last week saw the Sensex hitting all-time high breaking the record set in January 2008.  In the past week, BSE Sensex gained 4.86%, NSE Nifty 4.90% and my portfolio 2.67%.

Good buys in my watch list

Script Sector 3 Years Target Current Price Margin
Ess Dee Aluminium Packaging 942.00 495.00 90%
Maharashtra Seamless Metal 745.00 424.30 76%
Swaraj Engines Auto Ancil 850.00 489.15 74%
Tractors India Ltd Construction 1,150.00 738.80 56%
Divis Laboratories Pharma 1,095.00 706.55 55%
Bharti Airtel Telecom 510.00 329.45 55%
Amara Raja Batteries Auto Ancil 301.60 197.30 53%
NTPC Power 293.00 196.20 49%
Opto Circuits Healthcare 450.00 303.30 48%
Tech Mahindra IT 1,112.00 750.55 48%

News Update

Biocon Ltd., India’s biggest biotechnology company, may spin off its Syngene contract research unit as early as May 2012, Chairman Kiran Mazumdar-Shaw said. Biocon plans an initial public offering of Syngene during the next 18 to 24 months and expects to hire as many as 500 people in India by December 2011, Mazumdar-Shaw said in an interview yesterday. – Bloomberg, November 04, 2010

GAIL India Ltd., the country’s biggest natural gas distributor, posted a 30 percent increase in second-quarter profit after sales climbed. Net income in the three months ended Sept. 30 rose to 9.24 billion rupees ($208 million) from 7.13 billion rupees a year earlier, the company said in a statement to the Bombay Stock Exchange today. – Bloomberg, November 03, 2010

Graphite India disclosed a steep drop in standalone net profit for the quarter ended September 2010.  During the quarter, the profit of the company declined 28.08% to Rs 491.90 million from Rs 684.00 million in the same quarter last year. – myiris.com, November 02

Auto maker Mahindra & Mahindra (M&M) reported 34.38% jump in its total sales in October at 34,495 units. Its Farm Equipment Sector (FES) division reported a 29.35 per cent increase in tractor sales in October to 24,281 units. It also reported over three-fold jump in its two-wheeler sales at 21,204 units in October.

The country’s largest two-wheeler maker Hero Honda reported its highest ever monthly sales at 5,05,553 units in October, registering a jump of 42.75 per cent over the same month last year. The five-lakh mark is the highest ever for a two-wheeler company in India. The company launched the new Super Splendor, Hunk and Splendor Pro during the festive season.

Interesting Read

Amara Raja sees telecom batteries spurring growth

Installation of new towers by telecom companies and most of the batteries in the existing towers falling due for replacement are seen as key factors for revival of demand. Amara Raja is also eyeing the solar segment. Though details are being worked out, the official said the growth in the segment would have a positive impact in the long term. Within the automobile segment, the company is working on a capacity expansion. While the four-wheeler battery capacity would be expanded from the existing 4.2 million units to 6 million units, the two-wheeler battery capacity would go up from 2.4 million units to 5 million units. http://www.dnaindia.com/money/report_amara-raja-sees-telecom-batteries-spurring-growth_1461857

Expansion, more gas to benefit GAIL

The company has embarked upon an ambitious expansion project, which will triple its gross block in the next four years. Being the largest player in its field, it is also a natural beneficiary of the increasing gas volumes in the country. With the government planning to introduce some formula to apportion oil industry’s under-recoveries, Gail stands to benefit from a better visibility on its earnings. http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/Expansion-more-gas-to-benefit-GAIL/articleshow/6868288.cms

IT sector to benefit from surge in global demand

The enthused investor attention in IT stocks is on account of a recovery in global IT spends. On the back of a revival in the global IT spending, the industry biggies, including TCS, Infy and HCL, have delivered robust growth for the quarter ended September 2010. However, the country’s third largest IT outsourcing company Wipro seems to be a laggard. Another factor that fuelled the investor interest in the IT scrips was the revised recruitment targets to higher levels by the top players. Also, rupee’s appreciation against dollar towards the end of the September 2010 quarter has further pulled the margin down. http://economictimes.indiatimes.com/features/investors-guide/IT-sector-to-benefit-from-surge-in-global-demand-/articleshow/6845682.cms

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week 2.67% 4.86% 4.90%
This month 2.67% 4.86% 4.90%
This Year 15.15% 20.27% 21.37%
Since 1-1-2009 135.78% 117.74% 113.33%
Since 1-1-2008 58.48% 3.95% 3.83%
Since 1-4-2007 96.88% 60.69% 65.18%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 9 3 Years 85
Tata Global Beverages FMCG 6 2 Years 135
Bharti Airtel Telecom 5 10 months 13
HUL FMCG 5 4 Months 18
Hero Honda Auto 5 5 months 0

Shares I bought this month

Company Average Cost
Ess Dee Aluminium 490.76
Graphite India 94.72
Opto Circuits 297.70
Swaraj Engines 482.21
Tech Mahindra 749.71
Tractors India Ltd 733.96

Shares I sold this month

Company Average Price
Suzlon Energy 57.65
Blue Star 453.11

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 212 2.5 Years
Dabur India 152 4.5 Years
Tata Global Beverages 135 2.0 Years
Berger Paints 153 3.7 Years
Infosys 85 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -10 2 months
Divis Laboratories -3 1 month
Tata Communication -7 10 months
Mangalam Cement -5 2 months
Graphite India -2 2 months

Archive of previous portfolio reviews