Tag Archives: Biocon

Portfolio Review: 20 March 2011

14% loss so far this year!

My buys for this week

Selan Exploration (331.60)

Honeywell Automation (2117.65)

Opto Circuits (261.90)

Biocon (326.85)

Tata Power (1,229.00)


Weekly Portfolio Review: 11 December 2010

Concern of interest rate hike amid rise in food inflation and intensified probe into the 2G scam affected stock market negatively in the last week. Report of strong industrial production growth published on Friday helped to regain some of the loss of preceding three days. During the last week, Sensex lost 2.29% to 19,509 and Nifty 2.26% to 5,857. My portfolio lost 1.64% in the month to date.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
Graphite India Engineering 200.00 97.15 106%
Swaraj Engines Auto Ancil 850.00 474.65 79%
Tractors India Ltd Construction 1,150.00 664.75 73%
HUL FMCG 445.00 295.45 51%
BHEL Engineering 3,567.00 2,278.00 57%
NTPC Power 293.00 192.20 52%
Hindustan Zinc Metal 1,730.00 1,150.80 50%

I will be buying Swaraj Engines, Tractors India, HUL and Bhel in the coming week. Graphite India is in my top 5 holding.

News Update

Public sector undertaking NTPC today signed a power purchase agreement with Punjab State Power Corporation Ltd (PSPCL) for 2,640 MW coal-based thermal power project at Gidderbaha for Rs 15,000 crore. The plant consists of four units of 660 MW each, which would be entirely funded by NTPC. – The Economic Times, 11 DEC 2010

Country’s largest power producer NTPC has earmarked a whopping Rs 1,50,000 crore investment for sourcing equipment for its power projects in the next fiscal, the deliveries of which will be made over five years – The Economic Times, Dec 8, 2010

The board of state-run Bharat Heavy Electricals Ltd (Bhel) board has approved the company’s plan of starting a non-banking financial company (NBFC) to finance power projects, said B.S. Meena, secretary, department of heavy industries (DHI). Bhel plans to apply for a licence from the Reserve Bank of India. – Livemint, 10 DEC 2010

The Munjals of Hero Group have initiated talks with lenders to secure bridge financing for the buyout of its Japanese joint venture partner’s equity in Hero Honda. – Times of India, Dec 10, 2010

B.M Munjal promoted Hero group will buyout the Japanese partner Honda from the world’s largest two wheeler producing venture, a deal for which would signed this month. After months of negotiations, Hero group is believed to have reached an agreeemnt to acquire 26 per cent stake of Honda in the 26 year old joint venure but it is not clear at what price. – Economic Times, Dec 8, 2010

The country”s largest two-wheeler maker Hero Honda today said it has hiked the prices of its models in the range of Rs 500- Rs 1500 to offset the rising input costs. – The Economic Times, Dec 8, 2010

The Hero Group is in the process of scouting for technology partners in Europe and South East Asia given that the company has reached an agreement with Honda Motor Co to end its partnership in producing motorcycles. The technology agreement between Hero and Honda for bikes expires in 2014.  – NDTV, Dec 7, 2010

Opto Circuits India has announced that Cardiac Science Corporation, the wholly owned subsidiary of the company and a global leader in automated external defibrillator (AED) and diagnostic cardiac monitoring devices, added two electrocardiographs (ECGs) under its Burdick brand, known for its accuracy, reliability, and ease of use. The ECGs, available only in the US, deliver built-in, bi-directional communication so customers can connect to leading EMRs. – India Infoline, Dec 10, 2010

Andhra Pradesh-based Amara Raja Batteries on Friday said that it is scouting for locations to set up a new manufacturing unit in the Northern part of the country which is likely to be operational by 2012.

Amara Raja Batteries Ltd, the technology leader and one of the largest manufacturers of lead acid batteries in India, today unveiled Amaron Volt TM, a specialized storage battery for the Indian telecom industry in the era of 3G & BWA enabled Data driven market and Mobile Internet.  Availability of assured source of Green Energy even in rural and harsh outdoor conditions is what Amaron Volt TM offers. Amaron Volt TM, a 2V high integrity series product is the latest VRLA offering from Amaron Hi Life range to meet the emerging demanding applications requirement of reliable backup power in Indian telecom market. – Business Standard, Dec 10, 2010

Electric vehicle-maker, Mahindra Reva Electric Vehicles , today launched its Revai priced at Rs 3.10-lakh (ex-showroom Pune) and is targeting tripling its sales in the next 12-18-months. – Economic Times, Dec 10, 2010

GAIL India has proposed to set up 5,500 km of gas connectivity over the next two-three years investing USD 4 billion, a senior company official said today. Economic Times, Dec 10, 2010

State-owned Gas Authority of India (Gail), the country’s largest gas transmission and marketing company, has launched 10-year bond issue to raise funds at an upper cap of 8.9% per annum. The issue, which opened on Tuesday, has got close to Rs 1,000 crore bids between 8.85 and 8.89%. According to distributors, the firm has been negotiating with arrangers for the past few days to raise funds at not more than 8.8%. However, with the cost of funds inching up, it could not get commitment from the arrangers. Interestingly, even at this rate, arrangers were not willing to underwrite the issue on their books. – The Economic Times, Dec 8, 2010

Telecom giant Bharti Airtel Friday launched its IMEWE (India-Middle East-Western Europe) cable system, an ultra high capacity fiber optic submarine cable system to deliver better connectivity requirements of Middle East and European countries to Asia transiting through India. ‘IMEWE will open a second gateway for Airtel’s customers to the European market from Asia via Mumbai,’ the company said in a statement. – Economic Times, Dec 10, 2010

Developing a technology that may change the way the world approaches cancer, Biocon Limited, in collaboration with a US-based research company, is working on creating a “therapeutic vaccine” that will help the body activate the immune system to fight cancer on its own. – DNA, Dec 7, 2010

Agri machinery maker Mahindra & Mahindra today announced a tie-up with Italy based farm equipment company Maschio-Gaspardo S.p.A for getting supply of a complete range of rotary tillage equipment. As part of this agreement between Maschio and Mahindra AppliTrac (part of Mahindra & Mahindra’s farm equipment sector) the Italian company will manufacture rotovators. This will be bearing the Mahindra brand name which will be available through both Mahindra and Swaraj dealerships. Maschio will also manufacture other kinds of rotary tillage equipment for planting, seeding, crop care and crop residue management for Mahindra AppliTrac – The Economic Times, Dec 4, 2010

Interesting Read

Pharma companies line up for clinical trials

Signalling a growing interest in new drug discovery research, some major Indian pharmaceutical firms had applied for conducting clinical trials on at least 12 new drugs in 2010. The most sought therapeutic area is cancer. The numbers are the highest ever in the history of domestic drug discovery initiatives triggered by companies such as Dr Reddy’s and Ranbaxy over a decade ago. http://www.business-standard.com/india/news/pharma-companies-linefor-clinical-trials/417751/

Input, ad costs put pressure on FMCG cos

Several mid-sized fast moving consumer goods (FMCG) companies such as Godrej Consumer Products , Dabur India , Marico and Emami have outperformed their larger multi-national peers over several quarters during the year. Acquisitions abroad and consumers’ shift from high-priced premium products to low-priced mass-market products have helped the companies post good performances. But results of the quarter to September indicate that this stand-out performance could be difficult to sustain. http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/Input-ad-costs-put-pressure-on-FMCG-cos/articleshow/7068767.cms

Labour shortage in the fields drives farmers to tractors

Pawan Goenka noticed something unusual last year—tractor sales were climbing even though India had its worst monsoon in more than three decades and farm output dropped 2.8% in the three months to December last fiscal. The umbilical cord that tied rainfall patterns and tractor sales seemed to have been ruptured. The president of auto and tractor maker Mahindra and Mahindra Ltd offers an interesting explanation to this puzzle: growing labour shortages in rural India are encouraging farmers to mechanize operations. “The traditional model of predicting growth in the tractor market was only linked to the monsoon and didn’t factor in labour shortages,” says Goenka. http://www.livemint.com/2010/12/06233536/Labour-shortage-in-the-fields.html?atype=tp

Cement loosens grip again

With a meaningful demand recovery expected only around mid-CY11, analysts expect the demand-supply mismatch to prevail and stocks to underperform broader markets in the near term. After a superlative performance in October, when the overall dispatches of the cement industry grew over 18 per cent, the sector has taken a beating in November. In fact, on a sequential basis, the top five cement players have reported a 19.8 per cent drop in combined dispatches, indicating that demand is yet to pick up sufficiently to support prices. While analysts expect a demand recovery by mid-CY2011, most of them currently have a neutral to bearish view on the sector, as the valuations are not cheap. http://www.business-standard.com/india/news/cement-loosens-grip-again/417364/

What next for cement stocks?

The July-September quarter was the worst for the cement industry in the recent down cycle. Sales were unimpressive. Profits fell sharply. Every variable played spoil-sport. The extended monsoons dampened demand as construction activity remained poor. Despatches were further curtailed by unavailability of wagons and shortage of labour. Overhang of excess capacity reduced realizations. Correspondingly, an upsurge in raw material prices hindered profitability. The October-December quarter is expected to bring some relief. The month of October witnessed a sharp rebound in production and despatches. This is a normal trend after a dull monsoon season. Cement realizations also improved significantly. Fear of price hikes led dealers to build-up their inventory. http://www.equitymaster.com/detail.asp?date=12/7/2010&story=4&title=What-next-for-cement-stocks

BHEL adopts strategy to venture into newer areas

Bharat Heavy Electricals Ltd (BHEL), the country’s biggest power equipment company, has adopted a policy of forming joint ventures and concluding technical tie-ups for venturing into newer areas of business. While parking of surplus funds in productive activities is one driver for the approach, attention on diversification and risk sharing seems to be the theme behind all such collaborations. The company has a cash surplus of Rs 10,000 crore. It has floated joint ventures (JVs) and technical tie-ups or started preliminary exercises for entry into nuclear equipment, wind energy, specialised grade steel, transmission, transportation and water treatment businesses. http://www.business-standard.com/india/news/bhel-adopts-strategy-to-venture-into-newer-areas/417525/

Hero may have to play on Honda terms after break-up

Hero Group is believed to have won rights to use the Honda brand till 2014-end. As the final draft of separation between the Hero Group and Honda Motor Company gets readied, concerns are being raised on the Indian company’s ability to promote and sell its indigenous products in the long term, while managing the added burden of royalty payouts to the Japanese company. http://www.business-standard.com/india/news/hero-may-have-to-playhonda-terms-after-break-up/417263/

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week -2.35% -2.29% -2.26%
This month -1.64% -0.08% -0.10%
This Year 7.24% 11.70% 12.62%
Since 1-1-2009 119.59% 102.23% 97.95%
Since 1-1-2008 47.59% -3.45% -3.66%
Since 1-4-2007 83.36% 49.24% 53.27%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3 Years 89
Graphite India Telecom 6 2 Months 1
KSB Pumps Engineering 5 3 Months -13
Mangalam Cements Cements 5 3 Months -17
Maharashtra Seamless Metal 5 4 Months -5

Shares I bought this month

Company Average Cost
Tata Sponge Iron 368.41
Graphite India 95.62

Shares I sold this month

Company Average Price

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 208 2.6 Years
Dabur India 143 4.6 Years
Tata Global Beverages 107 2.0 Years
Berger Paints 127 3.8 Years
Infosys 89 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -12 3 months
Honeywell Automation -14 1 month
Tata Communication -26 11 months
Mangalam Cement -17 2 months
Divi’s Laboratories -14 1 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


Portfolio Review: 30 October 2010

Many more companies published their quarterly results in the past week. Hero Honda posted biggest drop in quarterly profit in three years. Tata Communications’ consolidated loss widened to Rs 213 crore in the second quarter. Tata Global Q2 net profit slid 82%. KSB Pumps reported a 34% fall in net profit. NTPC’s net profit declined marginally in the second quarter despite a 20% increase in its net sales. Hindustan Unilever Ltd (HUL) beat market expectations by posting a 32 per cent rise in net profit. BHEL Q2 net up 33% at Rs 1142 crore on good revenue from power sector. Glenmark Pharma net up 38% to Rs 112 cr.  Reliance Industries profit Jumped 28% as gas output and refining earnings rise. Mahindra and Mahindra reported 8% rise in quarterly profit.

In the past week, BSE Sensex lost 0.66%, NSE Nifty 0.80% and my portfolio 2.05%. In the month of October, my portfolio made a loss of 0.69% while year to date gain is 12.16%. Many companies in which I have large holding such as Bharti Airtel, Mangalam Cement, KSB Pumps, HUL etc declined 5% to 11% during the month. Dr. Reddys Laboratories, Maharashtra Seamless, Tata Global Beverages helped me to trim the overall loss with a gain of 3% to 15% during the month.

Good buys in my watch list

Script Sector 3 Years Target Current Price Margin
Mangalam Cement Cement 400.00 149.20 168%
Graphite India Engineering 200.00 93.20 115%
KSB Pumps Engineering 1,072.00 503.00 113%
Ess Dee Aluminium Packaging 942.00 471.30 100%
Swaraj Engines Auto Ancil 850.00 468.10 82%
Maharashtra Seamless Metal 743.00 417.20 78%
Hero Honda Auto 3,122.00 1,865.80 67%
HUL FMCG 479.00 294.10 63%
Tractors India Ltd Construction 1,150.00 715.00 61%
Divis Laboratories Pharma 1,095.00 691.85 58%

News Update

Reliance Industries Ltd., India’s biggest company by market value, posted its highest quarterly profit since 2007 after growing fuel demand boosted refining earnings and natural gas production rose. – Bloomberg

Hero Honda on Friday registered a 15% decline in net profit in September quarter, its biggest drop in quarterly profit in three years, on higher raw material costs, capacity constraints and increased competition. Net profit stood at Rs 505.60 crore against Rs 597.14 crore in the same period last fiscal. Net sales increased 11.8% to Rs 4,551.95 crore against Rs 4,069.60 crore in the same period last fiscal. Ebidta margin for the period stood at 13.36%. – The Financial Express

Mahindra & Mahindra India’s largest utility vehicles maker, reported a 7.8 percent rise in second-quarter net profit, as robust volumes in a fast-growing auto market mitigated higher input costs. Costs rose 4-7 percent between April and September, Mahindra’s automotive president Pawan Goenka told reporters on Friday and he expects them to increase further, which may prompt the automaker to pass on some of the rise to consumers, he added. – Reuters

World’s largest electric carmaker Reva Motors, owned by utility vehicle major Mahindra & Mahindra (M&M ), plans to enter China, hoping to cash in on a rising demand for ecofriendly cars as governments push for stricter emission norms globally. The Bangalore-based company looks to introduce its mass market model in China which promotes ecofriendly vehicles through a subsidy programme. – The Economic Times

State-run BHEL reported a 33 per cent increase in its net profit at Rs 1,142.28 crore for the quarter ended September 30 on the back of good revenues from the power sector. The company had posted a net profit of Rs 857.88 crore during the same period last year. BHEL’s revenues from power sector stood at Rs 6,965 crore during the July-September quarter, registering a growth of over 28 per cent against Rs 5,428.3 crore reported during the corresponding quarter of the last year. – The Economic Times

Biocon will invest $161 million in a facility in Malaysia, joining a number of Indian companies that have chosen to establish facilities in the South-East Asian country. This investment would be done through a strategic partnership with a Malaysian firm Biotechnology. – The Economic Times

NTPC’s net profit declined marginally in the second quarter despite a 20% increase in its net sales. This was because of rise in employee cost following pay revision and higher tax burden. The company reported a net profit of Rs 2,107 crore in the September quarter against Rs 2,152 crore in the same period last year. The company’s employee cost for the latest quarter worked out to Rs 709 crore against Rs 504 crore in the corresponding period of 2009-10. The company’s net tax burden for the latest quarter was Rs 9,216 crore against Rs 6,183 crore.  – The Financial Express

State-run NTPC will invest about Rs 20,000 crore to set up a 3,960-megawatt (Mw) coal-based power project in Madhya Pradesh. NTPC had signed a memorandum of understanding with the state government and MP Power Trading Company regarding this, the company said in a filing to the Bombay Stock Exchange. The project is likely to be commissioned during the Twelfth Five-Year Plan Period (2012-17). NTPC currently generates over 32,000 Mw, of which nearly 60 per cent is coal-based. It plans to increase its capacity to 75,000 Mw by 2017. – Business Standard

NTPC Ltd is scouting for tie-ups with global reactor manufacturers for setting up nuclear power projects on its own. The thermal power major, which already has a minority stake in a partnership with its state-owned counterpart Nuclear Power Corporation of India Ltd (NPCIL) for setting up nuclear units, also plans to firm up independent collaborations with global reactor vendors to set up imported Light Water Reactor-based atomic projects. – The Hindu Business Line

KSB Pumps has announced its September quarter results. The company has reported a 6% growth in topline and a 34% fall in bottomline on a YoY basis.

Tata Communications on Thursday reported a consolidated net loss of Rs 213.50 crore for the quarter ended September 30, 2010. The Tata Group company had posted a net loss of Rs 155.54 crore for the same period last year. The company’s total income, however, increased by 8.82 per cent to Rs 2,960.66 crore in Q2, FY’11, from Rs 2,720.48 crore in the same quarter last fiscal. – The Economic Times

Bharti Airtel and Aircel Cellular are interested in buying the yet-to-be-launched Indian wireless broadband business of Qualcomm, industry executives said, an indication that the scales are tilting in favour of the wireless technology being championed by the US-based cellphone chip maker. Bharti Airtel, India’s largest mobile phone company, is primarily interested in Qualcomm’s airwaves and permits for Delhi, complementing the 3G frequencies it won in the circle earlier this year, the executives said. – The Economic Times

Riding on the back of strong growth in domestic sales and R&D innovation, FMCG major Hindustan Unilever (HUL) has clocked a 32.2 per cent jump in net profit at Rs 566 crore in Q2 FY’11 against Rs 428 crore in the year-ago period. Net profit also included an exceptional gain of Rs 40 crore that HUL received through sale of property and restructuring of its closed units. – The Indian Express

Tech Mahindra Ltd has reported a positive earnings surprise for the September quarter, with operating profit adjusted for one-offs rising by 32.1% quarter-on-quarter. But investors are likely to have questions about the sustainability of this growth – The Livemint

Mangalam Cement disclosed a phenomenon drop in standalone net profit for the quarter ended September 2010.  During the quarter, the profit of the company declined 97.58% to Rs 8.57 million from Rs 354.39 million in the same quarter last year. Net sales for the quarter declined 28.08% to Rs 1,157 million, while total income for the quarter fell 27.76% to Rs 1,179.03 million, when compared with the prior year period. – Myiris.com

Swaraj Engines announced that its board has approved expansion program to increase its installed capacity from 36,000 engines to 60,000 engines p.a. The proposed expansion project will entail total capex of around Rs 400 million, which will be fully financed from internal resources. – Myiris.com

For the Sep 10 quarter, Swaraj Engines reported net profit growth of 13% to Rs. 10.82 crore on overall poor performance though partially offset by crash in effective tax rate. The topline grew by 24% to Rs. 86.20 crore on increased sales in engine and high tech components. However fall in OPM by 100 bps limited the growth in operating profit to 17% to Rs. 15.01 crore. The profits were further affected by fall in other income and interest income though partially boosted by crash in effective tax rate. – IIFL

Interesting Reading

Opto Circuits Acquisition of Unetixs Vascular Creates Strong Synergies for Criticare Systems

The acquisition of Unetixs Vascular’s detection and diagnostics products complements and strengthens the existing Opto Circuits (I) Ltd. product portfolio investment in Criticare Systems, Inc.’s vital signs monitoring line and pulse oximetry sensors. Unetixs Vascular is a leader in products aimed at the detection of peripheral arterial disease (PAD), a condition that is affecting a growing portion of the population in both the developed world and in emerging economies.

Read more: http://www.centredaily.com/2010/10/28/2302348/opto-circuits-acquisition-of-unetixs.html#ixzz13rJu5Ctj

Suzlon Energy in a soup

The high-level committee headed by the Chief Secretary that investigated the Attappadi tribal land scam has demanded stringent action against power giant Suzlon Energy Ltd and the provider of the land, Sarjan Realities Ltd, in its report submitted to the government. The committee recommended the dismantling and removal of all the windmills and related accessories from the site. Read more:  http://expressbuzz.com/cities/kochi/suzlon-energy-in-a-soup/219329.html

End of privileges

NTPC is bracing itself for competition as the government mulls starting mandatory tariff-based bidding for power projects allocation from January. The company is taking a fresh look at various cost components of power generation. In the current cost-plus regime, any escalation in cost from project delays gets capitalised. And electricity consumers bear the extra cost, since project delays and cost escalation are not the developer’s headache.  Read more: http://www.indianexpress.com/news/end-of-privileges/701812/

My Portfolio

Return (%)

My Portfolio BSE Sensex NSE Nifty
This Week -2.05% -0.66% -0.80%
This month -0.69% -0.18% -0.20%
This Year 12.16% 14.70% 15.70%
Since 1-1-2009 129.66% 107.65% 103.37%
Since 1-1-2008 54.36% -0.86% -1.02%
Since 1-4-2007 91.77% 53.25% 57.47%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 9 2.99 Years 78
Tata Global Beverages FMCG 6 1.98 Years 133
Bharti Airtel Telecom 5 10 months 15
HUL FMCG 5 4 Months 15
Hero Honda Auto 5 5 months 1

Shares I bought this month

Company Avg Cost
Graphite India 98.12
Mangalam Cement 162.85
Ess Dee Aluminium 499.41
Opto Circuits 313.74
Divi’s Laboratories 727.32
Tech Mahindra 770.31

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 203 2.5 Years
Dabur India 150 4.5 Years
Tata Global Beverages 133 2.0 Years
Berger Paints 152 3.7 Years
Infosys 78 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -13 2 months
Opto Circuits -9 1 month
Tata Communication -9 10 months
Mangalam Cement -8 2 months
Ess Dee Aluminum -6 1 month

Archive of previous portfolio reviews


Weekly Portfolio Review

The major gainers in my portfolio in the month to date are L&T, HUL, Berger Paints, Crompton Greaves and Biocon and with no major losers. It helped a 3.18% gain in my portfolio in the month to date.

Return

Drops Portfolio BSE Sensex NSE Nifty
This month 3.18% 3.70% 3.47%
This Year 3.35% 0.61% 1.18%
Since 1-4-2007 76.70% 34.41% 37.71%
Since 1-1-2008 42.23% -13.05% -13.44%
Since 1-1-2009 111.61% 82.14% 77.85%
Since 1-1-2010 3.35% 0.61% 1.18%

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Bharti Airtel Telecom 264.85 531.00 100%
Maharashtra Seamless Metal 388.95 703.00 81%
Hindustan Unilever FMCG 257.30 450.00 76%
Crompton Greaves Engineering 252.60 394.00 56%
Geometric IT 64.00 98.00 54%
Biocon Pharma 309.65 468.00 51%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 18% 34 months 67%
Tata Tea FMCG 11% 19 months 112%
Bharti Airtel Telecom 9% 5 months -9%
Dabur India FMCG 7% 39 months 134%
Gujarat Gas Energy 6% 25 months 135%

Shares I bought this month

Company Average Price
NTPC 200.90

Shares I sold this month

Company Average Price
NIL

Top 5 most gain (absolute)

Company Return Average Holding Period
Gujarat Gas 135% 25 months
Dabur India 134% 39 months
Tata Tea 112% 19 months
Berger Paints 86% 40 months
Infosys 67% 34 months

Archive of previous portfolio reviews


Pharma may log modest growth in Q4

The pharma sector is expected to log a modest performance for the quarter ended March 2010. Mid-sized pharma companies like Cadila Healthcare, Lupin, Piramal Healthcare, Biocon, Glenmark Pharma are likely to outperform sector biggies like Cipla and Ranbaxy. – A report in Economic Times says.

Aggressive product launches in the US, growth registered in the emerging markets and revival in contract manufacturing are likely to trigger this growth. Though rupee appreciation is negative for export oriented companies, the companies with foreign debts will benefit.

Read complete report of Economic Times

Related Link

Biocon | Cadila Healthcare | Glenmark Pharma | Pharma


Bought Biocon Limited

I bought Biocon Limited at 270.75 today. Pharmaceutical sector is a good defensive sector to be included in one’s equity portfolio. At present I have only two companies from pharma sector and with this buy, pharma constitute 7% of my total equity portfolio.

Biocon is a fully integrated biopharmaceutical company with expertise in the fields of biopharmaceuticals, custom research and clinical research. The company is a bulk drug supplier and has a market share of about 40% in the European market in bulk statins a drug class used for treatment of cardio-vascular diseases. Biocon is the largest Indian company in the biotechnology space and has a strong product portfolio.

The biopharmaceutical segment contributes 75% to the Indian biotech industry’s revenues and has been the key growth driver. The Indian biotech industry is expected to generate US$ 5 bn in revenues by 2010 and create more than one million biotech jobs over the next five years. On a global basis too, the biopharmaceutical market has undergone rapid expansion since its emergence 30 years ago.

The positive points for Biocon are healthy operating margin, long term earning growth, decent return on capital invested, consistent dividend payout history, larger promoter holding, lower FII holding, high liquidity, reasonable current ratio and low leverage.

In the global scale, while the fundamental factors driving the industry remain strong, the same is bogged down by intense competition and severe price erosion. The Indian domestic pharma industry is expected to grow at a CAGR of 16% over the next five years, however company’s success is highly depended on R&D efforts, and industry is fragmented and highly competitive. Thus the risk is that whether the company will be able to withstand these industry risks.

Recently Equitymaster recommended Buy with a target price of 360.00 with a two-three year perspective in their paid research service. HDFC Securities has recommended buy rating on the stock of Biocon with a target of Rs 327, in its February 11, 2010 research report. IndiaInfoline recommended buy rating on the stock with a target of Rs 320, in its anuary 14, 2010 research report.