Tag Archives: Oil Country

Weekly Portfolio Review: 31 December 2010

With a gain of 17% for the year 2010, the Bombay stock market became the best performer among the top 10 biggest stock markets in the world.

My net return for 2010 is 12%. It is after deducting the transaction cost including provision for selling cost on my holding. The top 5 contributors in the year are Infosys, HUL, Bharti Airtel, Dabur India and Tata Global Beverages which together add up to 46% of my total gain. The top 5 losers in the year are Mangalam Cement, Suzlon Energy, Tata Communications, Divis Laboratories and L&T which ate 29% of my total gain. In fact shares that are in loss took away 48% of total gain!

My hope for 2011 is on my holding which are in red at present. They are good companies and reversal of sentiments will guide those shares to reach higher and will give me a good return. Shares that hold 40% of total value of my portfolio are in red.

I have been paying hefty charges for brokerage with ICIC Direct. My average buying cost with ICICI Direct is 1.52% including taxes. I started using HDFC securities since last week and the average cost with them is 0.97% including tax which makes considerable savings on transaction cost. My target for 2011 is to completely shift demat and brokerage account to HDFC Securities.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
Mangalam Cement Cement 400.00 132.05 203%
KSB Pumps Engineering 1,072.00 531.40 102%
Maharashtra Seamless Metal 762.00 382.35 99%
Tata Sponge Iron Metal 700.00 363.20 93%
Zensar Tech IT 318.00 166.65 91%
Oil Country Tubular Metal 173.00 96.85 79%
Honeywell Automation Engineering 4,100.00 2,364.90 73%
Divis Laboratories Pharma 1,095.00 645.70 70%
Swaraj Engines Auto Ancil 850.00 501.70 69%
Shanthi Gears Engineering 71.00 44.80 58%
Amara Raja Batteries Auto Ancil 301.60 191.20 58%
Bharti Airtel Telecom 551.00 358.40 54%
Tech Mahindra IT 1,074.00 702.40 53%

I will be buying Zensar Technologies, Oil Country Tubular and Amara Raja Batteries in coming week. My cap on top 10 companies is 50% of total value and at present it has crossed the limit. That is why I am not buying some of the top in the above list this time.

Interesting Read

Shariah 50 index: The whys and the hows

BSE and TASIS have conducted a back-test of the index from 1/1/2008. As per this the BSE TASIS Shariah index has outperformed both the BSE-Sensex and the BSE 500 over all time periods. This demonstrates that the stocks which have been selected using the Shariah conditions are fundamentally sound. http://www.equitymaster.com/detail.asp?date=1/1/2011&story=1&title=Shariah-50-index-The-whys-and-the-hows

Consumption key to India growth story

Consumption is the sole purpose of all production. When a steel manufacturer says it is adding new production capacity, one can assume that people are buying more cars and consumer durables. The same is true for housing, which propels the growth in cement, or for that matter, apparel purchases which stoke the growth in textiles. Clearly, when demand for consumerdriven products rises, manufacturing across segments takes a leap. When that happens, new jobs are created. This, again, boosts consumption. And so on. http://timesofindia.indiatimes.com/business/india-business/Consumption-key-to-India-growth-story/articleshow/7199390.cms#ixzz19nwaLAnT

Gas pipelines set to compete on price

The Petroleum and Natural Gas Regulatory Board (PNGRB), the downstream regulator in the energy sector, has proposed to give gas pipeline operators freedom to compete in overlapping areas so that consumers benefit by way of lower tariff and softer gas prices. Now, pipeline operators like Gail India and Reliance Gas Transportation Infrastructure do not have that freedom and have to charge the regulator-fixed tariff without a premium or discount. http://www.indianexpress.com/news/gas-pipelines-set-to-compete-on-price/730502/

BHEL & Bharat Electronics, two PSUs in top R&D spenders in India

In India Inc’s research and development firmament, it’s the Bharats that shine the brightest. Two public sector undertakings, Bharat Heavy Electricals Limited and Bharat Electronics Limited, are standout performers among brick-and-mortar companies in India. If you leave aside pharma companies, whose R&D average investments are traditionally higher owing to the research-driven sector they operate in, BHEL (Rs 830 crore) and BEL (Rs 292 crore) spend more on R&D than most of their manufacturing industry peers. While it is only recently that large sections of Indian industry have realised the importance of R&D, for both BEL and BHEL, it has been a part of their organisational DNA for more than a decade. http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/bhel–bharat-electronics-two-psus-in-top-rd-spenders-in-india/articleshow/7175544.cms

Industries: Looking back and ahead

As the year 2010 coming to an end, reports on various industries appeared across the news papers. Here are the links to those reports on the sectors related to our investments. http://dropssavings.com/2011/01/industries-looking-back-and-ahead/

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week 1.25% 2.17% 2.04%
This month 2.82% 5.05% 4.63%
This Year 12.11% 17.43% 17.95%
Since 1-1-2009 129.55% 112.60% 107.32%
Since 1-1-2008 54.29% 1.50% 0.90%
Since 1-4-2007 91.68% 56.89% 60.52%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3.2 Years 106
Graphite India Engineering 5 3 Months 5
HUL FMCG 5 5 Months 19
KSB Pumps Engineering 5 3 Months -4
Divi’s Laboratories Pharma 5 2 Months -7

Shares I bought this month

Company Average Cost
Tata Sponge Iron 364.43
Graphite India 95.62
BHEL 2,339.58
HUL 302.01
Tractors India Ltd 690.22
Swaraj Engines 491.85
KSB Pumps 506.95
Honeywell Automation 2,406.00
Zensar Technology 163.94
Oil Country Tubular 89.66

Shares I sold this month

Company Average Price
Glenmark Pharma 353.32
Dr. Reddy’s 1722.27

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 217 2.7 Years
Dabur India 152 4.7 Years
Tata Global Beverages 103 2.2 Years
Berger Paints 154 3.8 Years
Infosys 106 3.2 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
Opto Circuits -10 2 months
Ess Dee Aluminium -5 2 month
Tata Communication -24 12 months
Mangalam Cement -16 3 months
Divi’s Laboratories -7 2 months

Archive of previous portfolio reviews

Weekly Portfolio Review: 31 December 2010

With a gain of 17% for the year 2010 in BSE Sensex, the Bombay Stock market became the best performer among the top 10 biggest stock markets in the world.

My net return for 2010 is 12%. It is after deducting the transaction cost including provision for selling cost on my holding. The top 5 contributors in the year are Infosys, HUL, Bharti Airtel, Dabur India and Tata Global Beverages which together add up to 46% of my total gain. The top 5 losers in the year are Mangalam Cement, Suzlon Energy, Tata Communications, Divis Laboratories and L&T which ate 29% of my total gain. In fact shares that are in loss took away 48% of total gain!

My hope for 2011 is on my holding which are in red at present. They are good companies and reversal of negative sentiment will guide those shares to reach higher and will give me a good return. Shares that hold 40% of total value of my portfolio are in red.

I have been paying hefty charges for brokerage with ICIC Direct. My average buying cost with ICICI Direct is 1.52% including taxes. I started using HDFC securities since last week and the average cost with them is 0.97% including tax which makes considerable savings on transaction cost. My target for 2011 is to completely shift demat and brokerage account to HDFC Securities.

Good buys in my watch list

Script

Sector

3 Years Target

Current Price

Expected Margin

Mangalam Cement

Cement

400.00

132.05

203%

KSB Pumps

Engineering

1,072.00

531.40

102%

Maharashtra Seamless

Metal

762.00

382.35

99%

Tata Sponge Iron

Metal

700.00

363.20

93%

Zensar Tech

IT

318.00

166.65

91%

Oil Country Tubular

Metal

173.00

96.85

79%

Honeywell Automation

Engineering

4,100.00

2,364.90

73%

Divis Laboratories

Pharma

1,095.00

645.70

70%

Swaraj Engines

Auto Ancil

850.00

501.70

69%

Shanthi Gears

Engineering

71.00

44.80

58%

Amara Raja Batteries

Auto Ancil

301.60

191.20

58%

Bharti Airtel

Telecom

551.00

358.40

54%

Tech Mahindra

IT

1,074.00

702.40

53%

I will be buying Zensar Technologies, Oil Country Tubular and Amara Raja Batteries in coming week. My cap on top 10 companies is 50% of total value and at present it has crossed the limit. That is why I am not buying some of the top in the above list this time.

Interesting Read

Shariah 50 index: The whys and the hows

BSE and TASIS have conducted a back-test of the index from 1/1/2008. As per this the BSE TASIS Shariah index has outperformed both the BSE-Sensex and the BSE 500 over all time periods. This demonstrates that the stocks which have been selected using the Shariah conditions are fundamentally sound. http://www.equitymaster.com/detail.asp?date=1/1/2011&story=1&title=Shariah-50-index-The-whys-and-the-hows

Consumption key to India growth story

Consumption is the sole purpose of all production. When a steel manufacturer says it is adding new production capacity, one can assume that people are buying more cars and consumer durables. The same is true for housing, which propels the growth in cement, or for that matter, apparel purchases which stoke the growth in textiles. Clearly, when demand for consumerdriven products rises, manufacturing across segments takes a leap. When that happens, new jobs are created. This, again, boosts consumption. And so on. http://timesofindia.indiatimes.com/business/india-business/Consumption-key-to-India-growth-story/articleshow/7199390.cms#ixzz19nwaLAnT

Gas pipelines set to compete on price

The Petroleum and Natural Gas Regulatory Board (PNGRB), the downstream regulator in the energy sector, has proposed to give gas pipeline operators freedom to compete in overlapping areas so that consumers benefit by way of lower tariff and softer gas prices. Now, pipeline operators like Gail India and Reliance Gas Transportation Infrastructure do not have that freedom and have to charge the regulator-fixed tariff without a premium or discount. http://www.indianexpress.com/news/gas-pipelines-set-to-compete-on-price/730502/

BHEL & Bharat Electronics, two PSUs in top R&D spenders in India

In India Inc’s research and development firmament, it’s the Bharats that shine the brightest. Two public sector undertakings, Bharat Heavy Electricals Limited and Bharat Electronics Limited, are standout performers among brick-and-mortar companies in India. If you leave aside pharma companies, whose R&D average investments are traditionally higher owing to the research-driven sector they operate in, BHEL (Rs 830 crore) and BEL (Rs 292 crore) spend more on R&D than most of their manufacturing industry peers. While it is only recently that large sections of Indian industry have realised the importance of R&D, for both BEL and BHEL, it has been a part of their organisational DNA for more than a decade. http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/bhel–bharat-electronics-two-psus-in-top-rd-spenders-in-india/articleshow/7175544.cms

Industries: Looking back and ahead

As the year 2010 coming to an end, reports on various industries appeared across the news papers. Here are the links to those reports on the sectors related to our investments. http://dropssavings.com/2011/01/industries-looking-back-and-ahead/

My Portfolio

Return

My Portfolio

BSE Sensex

NSE Nifty

This Week

1.25%

2.17%

2.04%

This month

2.82%

5.05%

4.63%

This Year

12.11%

17.43%

17.95%

Since 1-1-2009

129.55%

112.60%

107.32%

Since 1-1-2008

54.29%

1.50%

0.90%

Since 1-4-2007

91.68%

56.89%

60.52%

Top 5 holding in my equity portfolio

Company

Sector

% of Total Value

Average Holding Period

Absolute Return %

Infosys

IT

8

3.2 Years

106

Graphite India

Engineering

5

3 Months

5

HUL

FMCG

5

5 Months

19

KSB Pumps

Engineering

5

3 Months

-4

Divi’s Laboratories

Pharma

5

2 Months

-7

Shares I bought this month

Company

Average Cost

Tata Sponge Iron

364.43

Graphite India

95.62

BHEL

2,339.58

HUL

302.01

Tractors India Ltd

690.22

Swaraj Engines

491.85

KSB Pumps

506.95

Honeywell Automation

2,406.00

Zensar Technology

163.94

Oil Country Tubular

89.66

Shares I sold this month

Company

Average Price

Glenmark Pharma

353.32

Dr. Reddy’s

1722.27

Top 5 most gain (absolute)

Company

Return %

Average Holding Period

Gujarat Gas

217

2.7 Years

Dabur India

152

4.7 Years

Tata Global Beverages

103

2.2 Years

Berger Paints

154

3.8 Years

Infosys

106

3.2 Years

Top 5 most loss (absolute)

Company

Return %

Average Holding Period

Opto Circuits

-10

2 months

Ess Dee Aluminium

-5

2 month

Tata Communication

-24

12 months

Mangalam Cement

-16

3 months

Divi’s Laboratories

-7

2 months

Archive of previous portfolio reviews


Oil Country Tubular Limited

Oil Country Tubular Limited (OCTL), is one of the leading companies in the world processing a range of Oil Country Tubular Goods required for the Oil Drilling and Exploration Industry. OCTL has earned worldwide recognition for the quality of its products and services.  At OCTL, the complete processing activity is concentrated in a single unique integrated plant located at Narketpally and with Corporate Headquarters in Hyderabad, India. The facilities include Upsetting, Heat Treatment, Non-Destructive Testing, Metallurgical Laboratory, Gaging and Calibration Laboratory, Tool Joint and Coupling Threading, Casing and Tubing Threading, Friction Welding of Drill Pipe, Hydrostatic Testing and Internal Plastic Coating of Tubulars. OCTL’s wide product range covers Drill Pipe, Heavy Weight Drill Pipe, Drill Collars, Production Tubing, Casing, Tool Joints, Couplings, Pup Joints, Nipples, Subs, and Cross Overs. OCTL’s Oil Field Accessories include Rotary Subs, Lift Plugs and Lift Subs, Cross Overs (Drill Pipe to Drill Collar or Drill Collar to Drill Collar), Stabilizer Sleeves, Welded Blade Stabilizers & Integral Stabilizers and Cast Steel Lifting Bails. Services include Tool Joint Hardbanding, Make and Break of Tool Joints, Internal Plastic Coating of Drill Pipe and Tubing, Reconditioning of Drill Pipe, Re-threading of Drill Pipe, Tubing and Casing, and Field Inspection of Tubulars. OCTL can also manufacture and supply in large numbers finished Tool Joints and API Couplings for Tubing and Casing of all grades.

Finished Products

Products include drill pipe, tubing, heavy weight drill pipe, casing, drill collars and accessories.

Services include tool Joint hardfacing, make and break of tool joints, internal plastic coating of drill pipe and tubing, reconditioning of drill pipe, re-threading of drill pipe, tubing and casing and field inspection.

Industry

Steel – Tubes/Pipes

Consuming Industry

Oil Drilling and Exploration

Peers/Competitors

Jindal Saw, Welspun Corp, Mah Seamless, Ratnamani Metal

Related Links

Updates on Drops Savings | Company website | NSE Market Tracker | Information at Moneycontrol.com | Information at HDFC Securities


Weekly Portfolio Review: 26 December 2010

BSE Sensex ended the last week higher by 209 points to close at 20,074 and NSE Nifty 63 points at 6,012. Return on my portfolio in the past week was 1.76%. Hero Honda gained 15% in the past week. Other gainers in my portfolio were TIL, Graphite India, NIIT Tech, Divi’s Lab, and Swaraj Engines which gained from 5% to 8%. In the losers pack were Opto Circuits, Dr. Reddy’s Lab, and Crompton Greaves which lost 5% to 9%.

The surge in Hero Honda was after the Hero Group management allayed fears that there won’t be any impact on minority shareholders in Hero Honda after its split from the Japanese auto major Honda. The official disclosure of details of the parting of the joint venture with Honda ended all rumours that were going around for sometimes now.

NIIT Technologies acquired an electronic health records and referral management platform called “Preferr” to initiate its foray into the lucrative healthcare segment in the US. In another tragic incident, 2 persons died after inhaling poisonous gas at a manufacturing facility of Dr. Reddy’s Laboratories.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
KSB Pumps Engineering 1,072.00 521.95 105%
Zensar Tech IT 318.00 159.85 99%
Tata Sponge Iron Metal 700.00 357.10 96%
Oil Country Tubular Metal 173.00 90.70 91%
Graphite India Engineering 200.00 105.40 90%
Divis Laboratories Pharma 1,095.00 635.95 72%
Honeywell Automation Engineering 4,100.00 2,398.05 71%
Tractors India Ltd Construction 1,150.00 683.00 68%
Swaraj Engines Auto Ancil 850.00 505.95 68%
Amara Raja Batteries Auto Ancil 301.60 182.00 66%
Bharti Airtel Telecom 551.00 348.50 58%
BHEL Engineering 3,567.00 2,284.75 56%
Tech Mahindra IT 1,074.00 688.10 56%

I will be buying Zensar Technologies, Oil Country Tubular, Divis Laboratories and Honeywell Automation in this week. KSB Pumps and Tata Sponge Iron are already within my top 5 holding.

My plan is to limit number of companies in my holding to 30. At present I have 32 companies and when I buy Zensar Tech and Oil Country Tubular this week, it will reach 34. In order to align my portfolio with my plan, I will be selling shares of four companies in coming weeks.

I will sell Glenmark Pharma and Dr. Reddy’s in this week. My return on Glenmark Pharma is 47% in 9 months and on Dr. Reddy’s Laboratories is 23% in 4 months.

News Update

I am discontinuing this part from my weekly portfolio review. However I will share on twitter any news on companies that has been mentioned in ‘good buys in my watchlist’.  You may follow me on twitter at www.twitter.com/mvalappil

Interesting Read

Margins to remain under pressure at consumer goods firms

In a year during which food inflation stayed stubbornly high for the most part, packaged consumer goods companies engaged in a pitched battle for market share, driving up volumes with price wars, new launches and increased spending on high-decibel promotions even as margins got squeezed. http://www.livemint.com/2010/12/21045902/Margins-to-remain-under-pressu.html?atype=tp

Tariff-based bids to hurt power PSUs

Competition among power companies could become fiercer soon, with the Centre all set to introduce tariff-based competitive bidding for the allocation of projects from January 6. Consumers can rejoice as the new regime would bring down electricity tariffs across the country. Private sector players like Reliance Power, Tata Power, Sterlite, JSW Energy, Adani and Lanco Infratech, who are well-equipped to negotiate prices with vendors and also have access to secure fuel supplies, would be at an advantage when it comes to grabbing projects under the new regime. However, NTPC, despite its unmatched project-execution expertise, is expected to face the heat, at least initially. http://www.indianexpress.com/news/tariffbased-bids-to-hurt-power-psus/728274/

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week 1.76% 1.05% 1.06%
This month 1.55% 2.82% 2.53%
This Year 10.72% 14.94% 15.58%
Since 1-1-2009 126.71% 108.08% 103.16%
Since 1-1-2008 52.38% -0.66% -1.12%
Since 1-4-2007 89.31% 53.56% 57.31%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3 Years 102
Graphite India Telecom 6 2 Months 9
HUL FMCG 5 5 Months 12
KSB Pumps Engineering 5 3 Months -6
Swaraj Engines Auto Ancillory 5 2 Months 9

Shares I bought this month

Company Average Cost
Tata Sponge Iron 364.43
Graphite India 95.62
BHEL 2,339.58
HUL 302.01
Tractors India Ltd 690.22
Swaraj Engines 491.85
KSB Pumps 506.95

Shares I sold this month

Company Average Price

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 218 2.6 Years
Dabur India 152 4.6 Years
Tata Global Beverages 111 2.0 Years
Berger Paints 168 3.8 Years
Infosys 102 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
Opto Circuits -14 2 months
Honeywell Automation -10 1 month
Tata Communication -25 11 months
Mangalam Cement -17 2 months
Divi’s Laboratories -10 2 months

Archive of previous portfolio reviews