Tag Archives: Mphasis

11 companies for my portfolio!

For the last couple of months, I have been working to filter out companies in my portfolio to reduce the number of companies from the 54 to 20 or 30.  To find out the ones that I want to keep, I put all my companies to a quantitative test with investment criteria of Benjamin Graham, Kenneth Fisher and Martin Zweig as I mentioned in one of my recent posts.  I decided to keep those companies that pass any one of these three filters – and I got just 11! As usual, I am sharing with you what I found.

1. Opto Circuits

It is a technology company catering to healthcare industry. A multinational medical device company head-quartered in India and its products are used in about 150 countries.

Its revenue have been growing consistently every year for the last 10 years. Last four quarters also have shown impressive growth. Its EPS have grown at an impressive compound annual growth rate of 33% over the last five years.

Its debt equity ratio at 65% and not so healthy cash flows are points to be cautious!

2. Astral Poly Technik

Astral Poly Technik is a manufacturer of PVC plumbing systems. It has the license of Lubrizol of USA, equity joint venture with Speciality Process of USA and tie-up with many international names.  Its corporate clients include big names across various industries! Its products cater to the domestic and industrial applications.

Its revenue have been growing consistently every year for the last 10 years. Last four quarters have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 32% over the last five years.

Its debt equity ratio is moderate at 27% but its cash flow is not very healthy.

3. Page Industries

Page Industries Ltd. is the exclusive licensees of JOCKEY International Inc. (USA) for manufacture and distribution of the JOCKEY® brand Inner-wear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh, Nepal and UAE.

Its revenue has been growing consistently every year for the last 10 years. Last four quarters have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 36% over the last five years.

Its debt is huge at a debt-equity ratio of 93%  and its cash flow is also not very healthy.

4. Technofab Engineering

A 40 year old engineering and construction company, serving the Power, Industrial and Infrastructure Sectors, by executing comprehensive balance of plant (BOP) and auxiliary systems on a complete Turnkey EPC basis.

It is clearly a cyclical play which is affected by economic cycle and government policies due to its dependence on power and infrastructure sectors.

Its revenue have been growing consistently every year for the last 6 years. Last four quarters also have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 91% over the last five years.

Its debt is moderate at a debt-equity ratio of 11%  and its cash flow is not very bad.

5. Clariant Chemicals

Clariant Chemicals (India) Limited is one of India’s leading specialty chemicals companies and is the No. 1 player in Pigments, Textile Chemicals, Leather Chemicals, Biocides for Paints. Its products cater to the wide range of industries.

Its revenue growth in the last few years are not very impressive and  last four quarters also have shown muted or negative growth. Its EPS grown at an impressive compounded annual growth rate of 31% over the last five years.

Its is a zero debt company. Its cash flow is not very impressive and cash and cash equivalent in the balance sheet has been coming down in recent years.

6. Hinudstan Zinc

Hinustan Zinc is India’s largest and world’s second largest integrated producer of zinc & lead, with a global share of approximately 6.0% in zinc. Hindustan Zinc is a subsidiary of the NYSE listed – Sterlite Industries (India) Limited  and London listed FTSE 100 diversified metals and mining major – Vedanta Resources plc. Its core business comprises of mining and smelting of zinc and lead along with captive power generation. It has four mines and four smelting operations in India.

Its revenue have been growing consistently every year for the last 10 years except a dip in two years – 2008 and 2009.  Last four quarters have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 35% over last 10 years.

It is a zero debt company and its current ratio is 3.01! It has been paying dividend in all of the last 10 years.

7. Mayur Uniquoters

Mayur Uniquoters is manufacturer of PVC Vinyl. Its major clients are from Auto-mobile and footwear industries.

Its revenue have been growing consistently every year in the last 10 years. Last four quarters also have shown impressive growth. Its EPS grown at an impressive compounded annual growth rate of 65% over the last five years.

Its debt is moderate with a debt-equity ratio of 13%  and its cash flow is not very bad.

8. Wim Plast

Wim Plast manufacture plastic moulded furniture and bubble guard extrusion sheets in the brand name of Cello.

Its revenue have been growing consistently in the last 5 years.  Its EPS grown at an impressive compounded annual growth rate of 74% over the last five years.

It is a zero debt company and its cash flow is also healthy.

9. Mphasis

An IT company delivering Applications services, Infrastructure services, and Business Process Outsourcing (BPO) services globally serving clients across a wide range of industries.

Its revenue have been growing consistently every year in the last 7 years. However its last four quarters results were disappointing. Its EPS grown at an impressive compounded annual growth rate of 60% over the last five years.

It is a zero debt company and its cash flow is healthy.

10. National Peroxide

National Peroxide Limited manufactures Chemicals “Hydrogen Peroxide”, “Sodium Perborate” and “Per Acetic Acid”. NPL, a pioneer in India for peroxygen chemicals, is the largest manufacturer of Hydrogen Peroxide in India. Hydrogen Peroxide is a highly versatile chemical used in various industries for bleaching, chemical synthesis, environmental control/effluent treatment, sterilisation etc.

Its revenue have been growing consistently every year in the last 5 years except a dip in 2010. However the sales were down in the June 2011 quarter. Its EPS grown at an impressive compounded annual growth rate of 62% over the last five years.

It has no significant debt with a debt equity ratio of 7% and has an healthy cash flow.

11. Voltas

Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.

Its revenue have been growing consistently every year in the last 10 years. However growth in last four quarters were not consistent and was low. Its EPS grown at a compounded annual growth rate of 25% over the last five years at 31% over 10 years.

Its debt position is low with a debt equity ration of just 7% and has a healthy cash flow.

 

Portfolio Review: 31 July 2011

It is after one month that I revisited my portfolio today. When the market is too volatile and uncertain, for a long term investor, it is good to go to hibernation for a while. I remember I kept my portfolio untouched and completely kept myself out of the market for six months a few years ago. Then when I went back, everything was well and better! And it was not quite different this time too. When the Sensex lost 3.44%, my portfolio gained 1.22% in the month of July.

The shocker was Crompton Greaves which lost 35% during the month. Mayur Uniquoter (17%), Selan Exploration (23%) and NIIT Technologies (24%) saved me!

Good buys in my watchlist

Bajaj Auto (1,464.85)

Selan Exploration (345.20)

Mphasis (447.35)

Opto Circuits (286.80)

Note: I buy shares for long term, may be for 3-5 years or even more. One should see the above buys in this perspective. It is not a recommendation to buy, but what I intend to buy.

Weekly News Round-up: 04 December 2010

Here is a quick look on the news of the last week that have a bearing on the stocks that is mentioned in the good buys watch list in my weekly portfolio review. A snapshot with link of some interesting reports is appended at the bottom. Hope it will be useful to you if you follow my wathclist.

News Update

Honda Motor Co plans to sell its stake in India’s top-ranked motorcycle maker, Hero Honda Motors , and instead focus on its wholly owned subsidiary in the country, a news report said on Saturday. The Japanese automaker may earn some 100 billion yen (1.2 billion dollars) from the sale of its shares in Hero Honda, founded in 1984 with India’s Hero Group, the Nikkei business daily said. Honda and the Hero Group reached a basic accord this week to dissolve their partnership, Nikkei said, adding that they will seek final approval from their respective boards of directors later this month for the break-up. – The Economic Times, Dec 4, 2010

India’s top motorcycle maker, Hero Honda, has agreed to increase its royalty payments to Honda Motor Co to 8 percent of annual sales in return for a technology makeover and a stake sale by the Japanese firm in the venture, the Business Standard reported. The newspaper cited unnamed industry sources as saying that Honda had agreed to cut stake in the joint venture with India’s Hero Group to 20 percent from 26 percent now, and to sell the balance to Hero Group at a discount to the current market price. – The Economic Times, Dec 2, 2010

The country’s largest two-wheeler maker Hero Honda today posted sale of 4,21,366 units for November, registering a jump of 10.48 per cent over the same month last year. The company had sold 3,81,378 units in the same month last year, Hero Honda said in a statement.  – The Indian Express, Dec 1, 2010

Auto major Mahindra and Mahindra said it will launch two SUV models — Kornado and Rexton — from its Ssangyong Motor Company Limited (SYMC) portfolio by next year. The company recently announced that it has signed a definitive agreement with SYMC to acquire 70 per cent stake in the ailing South Korean auto maker for USD 463 million (about Rs 2105 crore).  – The Indian Express, Dec 3, 2010

Auto maker Mahindra & Mahindra today (M&M) reported an 18-per cent jump in its total sales in November at 26,666 units. The company had sold 22,589 units in the corresponding month last year, M&M said in a statement.  – Business Standard, Dec 1, 2010

Mahindra & Mahindra will launch the compressed natural gas-powered variant of its Logan car at around Rs 5.20 lakh, in an attempt to spruce sales of the entry-level sedan. The car, to cost Rs 56,000 more than the traditional petrol model, will be made available in only two cities, Mumbai and Delhi initially, but will be distributed in other cities such as Kanpur, Surat and Ahmedabad at later stages. – Business Standard, Dec 1, 2010

Medical equipment-maker Opto Circuits today said it will conclude the merger of US-based Cardiac Science Corp with itself in the next few days. In October, India-based Opto Circuits had announced that it would snap up cardiology device-maker Cardiac Science at a price tag of around $85 million (about Rs 375 crore). – Business Standard, Dec 2, 2010

Bharti Airtel Ltd.’s Nigerian unit cut its mobile-phone call rate by 50 percent in a bid to attract customers from rivals six months after entering Africa’s biggest telecommunications market. The move is in line with the company’s policy to reduce costs for customers, Rajan Swaroop, chief executive officer of Airtel Nigeria, said in an e-mailed statement late yesterday. The rate was cut to 12 naira ($0.08) a minute from 24 naira, according to information on its website. – Bloomberg, Dec 2, 2010

Country’s largest power producer NTPC has tied up with a Singapore-based bank for a $300 million loan for funding its financial plans in this fiscal, a senior company official said today. The loan is for seven-year period, Mr. Singhal added.  – The Hindu, Dec 1, 2010

NTPC Ltd., India’s biggest power producer, plans to place orders for generators worth at least 328.5 billion rupees ($7.2 billion) by March 31 as it accelerates capacity addition to help reduce blackouts.  The utility will buy nine generators of 660 megawatts each and the same number of 800-megawatt units, Chairman Arup Roy Choudhury said in an interview at his office in New Delhi Nov. 26. The equipment cost per megawatt is 25 million to 30 million rupees, he said. – Bloomberg, Nov 29, 2010

State-owned BHEL has bagged an order to supply the country’s first super critical 700-MW coal fire unit by Karnataka Power Corporation Ltd (KPCL) for its thermal power station (TPS) at Bellary. The order is valued at Rs 3,700 crore, BHEL said in a press release today. – The Economic Times, Nov 30, 2010

Indian technology outsourcing firm Tech Mahindra Ltd. is looking for potential acquisitions in Latin America jointly with its software outsourcing unit Satyam Computer Services Ltd. in a bid to bolster the two companies’ foothold in the region and cater to global customers. – The Wall Street Journal, Nov 30, 2010

India’s software services company Geometric Ltd is in price negotiations with a German firm for buyout and has earmarked $20-30 million for acquisitions over next three years, a top official told Reuters on Monday. – The Economic Times, Nov 30, 2010

Interesting Read

Mid-tier IT firms look to shore up onsite presence

A revival in information technology spends, rising demand and the lure of larger contracts are prompting mid-size software service firms to step up their onsite presence, especially in the United States, industry watchers said. Increasing resources at overseas locations could also shield IT companies from any potential protectionist moves by governments, while better positioning them to tap into gradually reviving IT budgets.

http://economictimes.indiatimes.com/tech/ites/Mid-tier-IT-firms-look-to-shore-up-onsite-presence/articleshow/7034520.cms

Rally in cement shares seems premature

Cement prices have weakened due to oversupply in most regions. Cement prices, up nearly 20% from April until August, fell sharply thereafter. In November, they dipped by an average of Rs.15-20/bag over August across the country, barring the eastern region. As if defying industry fundamentals, share prices of most cement firms have appreciated in the past three months. Output, too, has declined. November despatches of some pan-India players such as Ambuja Cements Ltd and UltraTech Cement Ltd are not very encouraging. They declined by 9-10% over the year-ago period. However, despatches from ACC Ltdand Jaiprakash Associates Ltd rose 5% and 13%, respectively, due to capacity addition. Demand growth, too, has been weak, partly due to the high base effect of fiscal 2010 and partly due to poor offtake from real estate and slower infrastructure growth. http://www.livemint.com/2010/12/02221446/Rally-in-cement-shares-seems-p.html?atype=tp

MphasiS bets on software products for next billion

The newest entrant into the billion-dollar club of Indian IT services companies, MphasiS, is looking at software products as a growth engine that could take it closer to the next billion. The firm has already incubated two products and is currently refining its go-to-market strategy. Executives from the company said the firm is “testing out” a hospital information management (HIM) product, designed and developed entirely for small to medium-sized hospitals in emerging geographies. According to industry watchers, hospital information system is globally a $20 billion market; the Asian market, including Japan, may be worth $4 billion. http://www.financialexpress.com/news/mphasis-bets-on-software-products-for-next-billion/717743/0

Past issues


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