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


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