Weekly Portfolio Review: 04 December 2010

After three weeks of decline, market turned positive past week. The investors’ hunting for bargain stocks after steep fall in the preceding 3 weeks, report of improved GDP growth for the second quarter at 8.9%, positive news of food inflation sliding to 18-month low – all helped the market to turn to positive in the past week. BSE Sensex closed at 19,967 with a gain of 4.34% and NSE Nifty at 5,993 with a gain of 4.19% for the week. My portfolio gained 2.97% in the past week and 9.83% year to date.

Hero Honda declined 5.37% in the past week on the news of huge hike in the royalty payable to the Honda while Honda offered 6% stake to Hero at a significant discount to the market price. It is in fact looting of other shareholder’s money. Current value of my investment in Hero Honda comes to 4% of my total portfolio. At present, my decision is to hold on to it, but not to add any more until the dust is cleared.

Other major news are: Opto Circuits concluded merger of US-based Cardiac Science, NTPC secured finance from a Singapore-based Bank, auto companies registered double digit growth in sales in the month of November, M&M plans to introduce SUVs in India from its subsidiary Ssangyong and gar powered variant of its Logan car, Bharti Airtel cut mobile phone call rate in Nigeria by half, Bhel received order worth Rs. 3,700 crore from Karnataka, Tech Mahindra and Geometric plan for acquisition abroad.

A complete news round-up for the past week and a collection of interesting read is given in separate posts.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
Mangalam Cement Cement 400.00 133.70 199%
Graphite India Engineering 200.00 92.35 117%
KSB Pumps Engineering 1,072.00 498.55 115%
Tata Sponge Iron Metal 700.00 352.85 98%
Maharashtra Seamless Metal 754.00 397.75 90%
Ess Dee Aluminium Packaging 942.00 504.65 87%
Divis Laboratories Pharma 1,095.00 620.10 77%
Swaraj Engines Auto Ancil 850.00 484.75 75%
Honeywell Automation Engineering 4,100.00 2,480.30 65%
Tractors India Ltd Construction 1,150.00 703.15 64%
Amara Raja Batteries Auto Ancil 301.60 185.00 63%
HUL FMCG 486.00 299.40 62%
BHEL Engineering 3,567.00 2,209.70 61%
Tech Mahindra IT 1,074.00 667.20 61%

I will be buying Graphite India and Tata Sponge Iron in the coming week. Managalam Cements and KSB Pumps are in my top 5 holding.

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week 2.97% 4.34% 4.19%
This month -2.08% -0.33% -0.41%
This Year 9.83% 14.33% 15.22%
Since 1-1-2009 124.88% 106.98% 102.53%
Since 1-1-2008 51.15% -1.19% -1.43%
Since 1-4-2007 87.78% 52.74% 56.82%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3 Years 87
Bharti Airtel Telecom 5 11 Months 19
KSB Pumps Engineering 5 3 Months -12
Mangalam Cements Cements 5 2 Months -15
Maharashtra Seamless Metal 5 4 Months 0

Shares I bought this month

Company Average Cost

Shares I sold this month

Company Average Price

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 217 2.6 Years
Dabur India 148 4.6 Years
Tata Global Beverages 113 2.0 Years
Berger Paints 129 3.8 Years
Infosys 87 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -12 3 months
BHEL -12 2 months
Tata Communication -22 11 months
Mangalam Cement -15 2 months
Divi’s Laboratories -12 1 month

Archive of previous portfolio reviews


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