Tag Archives: Review

Weekly Portfolio Review: 20 February 2011

Market put a break to its weekly losing streak with a gain in Sensex of 2.72% and Nifty 2.81% in the past week. My portfolio gained 3.39% in the last week. Top gainers in my portfolio were Tech Mahindra (15%), Mangalam Cement (11%), Clariant Chemicals (9%), TIL (7%) and Opto Circuits (7%).

Good buys in my watch list

Company Sector 3 Years Target Current Price Expected Margin
Technofab Engg. Engineering 300.00 154.55 94%
Mangalam Cements Cement 320.00 108.55 195%
Tata Sponge Iron Metal 700.00 337.15 108%

Technofab Engineering is a 38 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 has operations in India, Ghana, Ethiopia, Kenya, Zambia and Fiji. The company works on Industrial and Utility Piping Systems, Fuel Oil Storage and Handling Systems, Fire Detection and Protection Systems and Raw and Sea Water Intake System on a turnkey basis. www.technofabengineering.com

Tata Sponge Iron Ltd is an associate company of Tata Steel. It has its manufacturing facility at Bilaipada in Orissa. It is the first Indian sponge iron company to be accredited with ISO 9002 certification. Tata Sponge Iron Limited produces premium & consistent quality sponge iron.


Weekly Portfolio Review: 13 February 2011

The market continued to post weekly loss though the Friday witnessed an unexpected come back. The year to date loss in the BSE Sensex is 14% till the close of the last week and loss in my portfolio is 15%.

Good buys in my watch list

Company Sector 3 Years Target Current Price Expected Margin
Cera Sanitaryware Construction 330.00 163.95 101%
Cravatex Healthcare 1485.00 553.00 169%
Opto Circuits Healthcare 440.00 265.20 66%
GSK Consumer Food 3152.00 2150.00 47%

Launched in 1980, Cera is a pioneer in the sanitaryware segment in India. Based in Kadi, Gujarat, Cera Sanitaryware Ltd. was established with an initial capacity of 3,600 MTPA, the plant has undergone several periodical upgradations and modernisations to expand to 25,000 MTPA. To achieve growth in the rapidly changing retail market in the country, Cera, has launched its one of a kind Cera Bath Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad, Mumbai. With the opening of the Cera Bath Studios, the discerning consumers, architects and interior designers can have full view of the Cera’s premium ranges of WC’s, Wash Basins, Shower Panels, Shower Cubicles, Bath Tubs, Shower Temples, Whirlpools, CP fittings etc. Cera Bath Studios will complement its existing network of 600 dealers and 5000 retailers. Several Bathrooms are displayed live, so that the customers can get a feel of Cera’s vast range of products.  Having shown a growth rate of more than 25% since last 3 years, Cera Sanitaryware Ltd. today is the fastest growing sanitaryware company in India.  For its contribution towards the industrial growth, Cera’s ED ‘Mr. Vidhush Somany’ received “The Nirman Ratna Award” in September 2010. (www.cera-india.com ).

The Cravetex was incorporated in 1951 and was one of the largest chains of dyers and dry cleaners of it’s time. Along with these ventures, the Company also diversified into textile processing and printing. The Company expanded into the manufacture of sports and casual wear, culminating recently, in the distribution of fitness equipment for home and commercial use. The Company represents several reputed international brands of fitness equipment in India and is the only ISO certified & public listed company in this field. The Company has now integrated beauty therapy into its already versatile list of services. The Company offers a range of advanced international beauty therapies within spas across the country as well as providing clients with high-end beauty products from one of the leading beauty product manufacturers in the world. The Company continues its presence in the Garment Exports Market and the domestic footwear market where it caters to the needs of several international brands. www.cravatex.com

Opto Circuits (I) Limited, headquartered in Bangalore, India, has a range of products that includes, Pulse Oximeters, Pulse Oximeter Sensors, Fluid warmers, Cholesterol monitors & recently Stents. OCI is in a very specialized, technology oriented Opto electronic industry since 12 years. OCI has the status of Export House and has been awarded two star trading house status by the Federal Government of India. It has ISO 9001-2000 and ISO 13485-2003 quality system certification. OCI group companies have been awarded CE approval for its products. The subsidiaries of OCI possess FDA approval for different products being manufactured by them. www.optoindia.com

GlaxoSmithKline Consumer Healthcare Ltd., the Indian associate of Glaxosmithkline plc, U.K., is a market leader in the Health Food Drinks industry in India. Its flagship product is Horlicks which is over 100 years old in India. The Company also manufactures Boost, Viva, Maltova, Biscuits. It promotes and distributes prominent brands in diverse categories such as Eno, Crocin and Iodex.  GSKCH exports to more than 37 countries across the globe and around 8% of its sales comes from exports. The company has a strong marketing and distribution network in India comprising over 1800 wholesalers and direct coverage of around 6 Lakh retail outlets. Its manufacturing facilities are located at Nabha in Punjab, Rajahmundry in Andhra Pradesh and Sonepat in Haryana. It was incorporated in 1948 and went public in 1978. www.gsk-ch.in


Weekly Portfolio Review: 05 February 2011

A month passed in the new year with a huge loss of 11% in BSE Sensex, 10% in NSE Nifty and 10% in my portfolio. Rising inflation, political situation in the country and unrest in Egypt and west Asian countries continued to be a cause of concern in the past week as well. A report in the Economic Times states that the free-fall in the market is expected to continue. Industrial growth numbers for the month of December 2010 are expected to be announced coming week and it may have an effect on market direction.

Good buys in my watch list

Company Sector 3 Years Target Current Price Expected Margin
Cera Sanitaryware Construction 330.00 169.35 95%
Selan Exploration Energy 694.00 367.65 89%

I will be buying the above two in small quantities in the coming week. I didn’t buy anything last week .

Cera is a well known brand in sanitary ware. Launched in 1980, Cera is a pioneer in the sanitary ware segment in India ( www.cera-india.com ). The company’s net sales income for the period April-December 2010, totalled at Rs 167.42 crores compared to Rs 132.93 crores during April-December, 2009 reflecting an increase of 26.75%. It registered a net profit of Rs 19.32 crore for the nine month period ending December 31, 2010, which was up 44.71 per cent from Rs 13.35 crore in the corresponding period last year. The company expects the market for Sanitaryware to be buoyant in the wake of the construction boom in the commercial and residential segments. In order to take the full advantage of the market situation, the company has begun executing its expansion programme which will enhance the production capacity to 2.7 million pieces a year from the existing level of 2 million pieces annually.  – http://www.sify.com/finance/cera-apr-dec-profits-rise-44-news-default-lbubEzajcad.html

Selan Exploration Technology Limited (SELAN) is engaged in oil exploration and production with a right to develop three discovered oilfields situated in the state of Gujarat namely Bakrol, Indrora and Lohar, all with proven oil and gas reserves. SELAN was subsequently awarded two more fields in Gujarat namely Ognaj Oilfield and Karjisan Gas field. The Promoters and Management have extensive experience and domain knowledge in the field of Petroleum Exploration, Development and Production as well as in the field of Geophysical Data Acquisition, Processing and Interpretation. (www.selanoil.com)


Weekly Portfolio Review: 29 January 2011

You must be feeling letdown as market continue to go down mercilessly. I am not different! The loss in BSE Sensex is 10% in the month to date which is after a lacklustre year of 2010. My month to date loss also stands at 10%.

Declining foreign direct investments (FDI), widening trade deficit, escalating inflation, and RBI increasing benchmark short term rates all added to fire. On global front, though American economy grew at faster pace in the fourth quarter of last year, the unemployment rate is increasing. In the UK, amid increasing inflation, the consumer confidence plunged the most since 1994 as per a report.

HDFC Securities, in its weekly report, states that market closed below the 200 day EMA (Exponential Moving Average) and it expects further downside in the coming week.

It is not end of the world. A long term investor would see such ups and downs from time to time. In 2009 the market gained about 100% after a loss of 52% in 2008. It was just 17% gain in 2010! For a long term investor, the downturn in the market must be seen as opportunity to enter into fundamentally sound companies.

I am not buying anything in the coming week. There are a number of good companies available at attractive valuation. However most of them are trading below their daily moving averages. My investment decisions have never been based on technical analysis. But technical trend will give an indication of good entry/exit point. Sometimes it may turn out to be a wrong decision. Nobody can predict the market and we can’t say how far it will go down!


Weekly Portfolio Review: 23 January 2011

My portfolio lost 1.15% in the last week while BSE Sensex gained 0.78% and NSE Nifty 0.74%. The loss in the month to date for Sensex and Nifty is 7% and for my portfolio 6%.

Top gainers                                           Top Losers

Opto Circuits 10.88% Zensar Tech 7.11%
HCLT 6.36% GAIL 6.88%
Tata Communications 2.96% Mangalam Cement 4.99%
Ess Dee Aluminium 2.03% Amara Raja Batteries 4.99%
Tech Mahindra 1.77% Tractors India Ltd 4.21%

I bought Swaraj Engines, Bharti Airtel, Zensar Technology, Honeywell Automation and Clariant Chemicals in the last week.

So what’s next? Continue buying in instalments!

Good buys in my watch list

Company Sector 3 Years Target Current Price Expected Margin
Mazda Ltd Engineering 207.00 108.50 91%
Zensar Tech IT 318.00 167.20 90%
Honeywell Automation Engineering 4,100.00 2,394.85 71%

I will be buying all of the above in small quantities in the coming week.

Mazda Ltd is new to my portfolio. It is predominantly an engineering company producing different types of engineering equipments used by various industries. It has also ventured into food segment with brand name of BCool!


Weekly Portfolio Review: 08 January 2011

BSE Sensex lost 817 points (3.98%) to close the week at 19,692 and NSE Nifty 230 points (3.75%) to close at 5,905. My portfolio lost 1.69% in the week. In my portfolio, Opto Circuits lost 10.9%. Other major losers were L&T, Oil Country Tubular, Hero Honda, Bharti Airtel and Biocon which lost 5% to 7%.   Zensar Technology and GAIL were major gainers.

Interest rate hike fears amid raising inflation affected the market negatively and going forward it will be a great concern in the short term. Interest rate hike will affect the overall economic activities in the country while food inflation may continue in top gear due to supply constraints.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
Mangalam Cement Cement 400.00 133.25 200%
Tata Sponge Iron Metal 700.00 366.00 91%
Zensar Tech IT 318.00 173.25 84%
Tech Mahindra IT 1,074.00 707.95 52%
Clariant Chemicals Chemicals 1,092.00 751.05 45%

I will be buying Zensar Technologies, Tech Mahindra and Clariant Chemicals in coming week.

Clariant Chemicals is a new entrant to my portfolio. 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. Its products serve a wide range of industries from consumer goods to oil and gas. . www.clariant.in

Zensar Technologies is a globally focused software and services company spread across eighteen countries across the world. Zensar provides end-to-end services from IT development to Business Process Outsourcing, from consulting to implementation.

Tech Mahindra is part of the Mahindra Group, in partnership with British Telecommunications plc (BT), one of the world’s leading communications service providers. Focused primarily on the telecommunications industry, Tech Mahindra is a leading global systems integrator and business transformation consulting organization. Tech Mahindra expanded its IT portfolio by acquiring the leading global business and information technology services company, Mahindra Satyam (earlier known as Satyam Computer Services). www.techmahindra.com

Interesting Read

New arena for 2-wheeler firms

With global markets open to the Hero Group after its split with Japan’s Honda Motor, the next battleground for Indian two-wheeler companies could be overseas. Until now, the joint venture was restricted from exporting freely to other markets and was forced to ship to a handful of countries through Honda subsidiaries. http://www.business-standard.com/taketwo/news/new-arena-for-2-wheeler-firms/420613/

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week -1.69% -3.98% -3.75%
Since 1-1-2010 10.21% 12.75% 13.53%
Since 1-1-2009 125.66% 104.12% 99.55%
Since 1-1-2008 51.68% -2.55% -2.88%
Since 1-4-2007 88.44% 50.64% 54.51%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 7 3.2 Years 102
Graphite India Engineering 6 3 Months 7
HUL FMCG 5 5 Months 19
KSB Pumps Engineering 5 3 Months -5
Divi’s Laboratories Pharma 5 2 Months -9

Shares I bought this month

Company Average Cost
Amara Raja Batteries 195.57
Zensar Technology 170.48
Oil Country Tubular 98.45

Shares I sold this month

Company Average Price

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 209 2.7 Years
Dabur India 152 4.7 Years
Tata Global Beverages 103 2.2 Years
Berger Paints 148 3.8 Years
Infosys 102 3.2 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
Opto Circuits -19 2 months
Ess Dee Aluminium -5 2 month
Tata Communication -25 12 months
Mangalam Cement -15 3 months
Divi’s Laboratories -9 2 months

Archive of previous portfolio reviews

Clariant Chemicals (India) Limited represents a valuable repository of manufacturing and marketing experience. Its constituents were all well respected companies who played an invaluable role in the development of the textiles, leather, paints, plastics, printing inks and agrochemicals industries in India. Today Clariant Chemicals (India) Limited is – No.1 in pigments, No.1 in textile chemicals and No.1 in leather chemicals.


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


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

Weekly Portfolio Review: 19 December 2010

It is interesting to read the news reports to see the reason for up or down of share market every day – sometimes it is quite funny or weird! The last Monday Sensex closed up 183 points ‘taking support from positive Europe markets’, on Tuesday another 107 points high ‘amid hopes that dip in inflation rate will lead the Reserve Bank to halt the tightening of key policy rates for now’. However the Sensex was down by 151 points on Wednesday ‘reacting to profit booking in global peers. Rate sensitive sectors like realty and banks were under pressure ahead of Reserve Bank of India’s credit policy meet’ and then it closed higher by 217 points on Thursday, ‘after the RBI kept short term lending and borrowing rates unchanged’. Net effect is that the Sensex ended 356 points high at 19,865 and Nifty 91 points at 5,949 for the week.

In fact, one day it was up with the hope that RBI would halt the tightening of rate, next day it was down under pressure ahead of RBI’s meet and following day it went up as RBI kept rate unchanged!

The major news for the market last week was the official announcement of parting of Honda from the join venture, Hero Honda. It has been in the news for quite sometimes now and the uncertainty has ended with this formal announcement. But the ‘analysts’ are still divided on the outcome and long term effect on the company after Honda leaving the JV.

Good buys in my watch list

Script Sector 3 Years Target Current Price Expected Margin
KSB Pumps Engineering 1,072.00 501.15 114%
Graphite India Engineering 200.00 97.80 104%
Tata Sponge Iron Metal 700.00 352.95 98%
Mazda Engineering 207.00 111.80 85%
Tractors India Ltd Construction 1,150.00 631.30 82%
Divis Laboratories Pharma 1,095.00 602.10 82%
Zensar Tech IT 289.00 160.00 81%
Swaraj Engines Auto Ancil 850.00 481.45 77%
Tech Mahindra IT 1,074.00 669.45 60%
Opto Circuits Healthcare 450.00 280.95 60%
BHEL Engineering 3,567.00 2,304.70 55%
HUL FMCG 446.00 294.40 51%

I will be buying KSB Pumps and Tata Sponge Iron in coming week. Graphite India is within my top 5 holding, so not buying now.

News Update

Indian GSM telecom operators added a whopping 17.45 million new subscribers in November, taking the all-India GSM cellular subscriber base to 526.18 million, cellular operators’ association COAI said on Friday. Bharti Airtel, the largest GSM player, added 3.10 million new users in November, taking its total subscriber base to 149.39 million. It had 28.39 per cent market share as of the end of November, 2010, it added. – Indian Express, Dec 16, 2010

Bharti Airtel Ltd. plans to expand its mobile network coverage in Madagascar by about 25 percent in 2011 to attract customers in rural areas. The expansion will offer services to a further 5 million to 6 million people. The company plans to invest $50 million over 18 months and wants to increase customers to 3.2 million in Madagascar within a year from 2 million now. – Bloomberg, Dec 14, 2010

The Hero Group on Thursday announced that it would buyout the entire 26 per cent stake of its partner Honda Motor Company Group in Hero Honda thus breaking its 26-year-old partnership. Hero Honda will continue to produce and sell the existing models, while new models would be also launched. However, all future products will be rolled out under the new licensing agreement between Hero Group and Honda. Hero Honda brand name will also be changed over time. The new licensing arrangement signed between the Hero Group and Honda Motor Co., Japan, would also enable higher growth by giving it (Hero Group) the freedom to develop its own research and development capabilities and exploit global export and manufacturing opportunities.  The two-wheeler major will also start exporting products across the globe and look for manufacturing opportunities.  – The Hindu, Dec 16, 2010

State-run power producer NTPC may approach the government next fiscal for permission to raise funds through a follow-on public offer to part-finance power equipment purchases worth an estimated Rs 1,50,000 crore.  – The Economic Times, Dec 17, 2010

NTPC, the state-run power producer, signed a power purchase agreement (PPA) with the West Bengal government yesterday for a thermal unit it will be setting up at Katwa (Bardhaman district). “The total investment for the 2×800 Mw Katwa project will be Rs 9,600 crore, roughly around Rs 6 crore per Mw. Discussions are also going on for a greenfield (new) project at Santaldih (Purulia district),” – Business Standard, Dec 14, 2010

Public sector undertaking National Thermal Power Corporation Limited (NTPC) today signed a power purchase agreement with Punjab State Power Corporation Ltd (PSPCL) for a 2,640-Mw coal-based thermal power project at Gidderbaha, being undertaken at a cost of Rs 15,000 crore. – Business Standard, Dec 13, 2010

Gujarat plans to treble its cement production capacity in 3-5 years. Proposals have been invited from cement companies like ACC , ABG, Ambuja Cement, Emami , Indiabulls, Adani group, Ultratech and L&T and the state hopes to raise its capacity from 20 million tonnes per annum to 70 million tonne. – The Economic times, Dec 17, 2010

Interesting Read

Record car sales mark 2010 for Indian auto sector

Record sales made 2010 a special year for automakers in India, which also saw the iconic Maruti 800 take a bow from big cities, Hero split with Honda and demand for the promising Nano sputter following a string of accidents. For a country whose economy has been expanding at near 9% rate, it was not surprising that automobile sales broke all records between July and October to average a growth of 30%. Such was the appeal of the country and the appetite of the Indian motorist that Bugatti launched its Veyron 16.4 Grand Sport, which at Rs 16 crore became the costliest car in India, while other niche marques Aston Martin and Spyker Cars said they too would drive in soon. http://www.hindustantimes.com/Record-car-sales-mark-2010-for-Indian-auto-sector/Article1-640211.aspx

Car Trouble In India

India’s automobile industry has raced from a crippling slowdown to scorching growth in less than two years. But a severe shortage of parts is applying the brake in this otherwise rosy journey. http://www.forbes.com/2010/12/15/forbes-india-auto-industry-faces-ugly-turn.html

FMCG cos fastracked expansion in 2010

A total of 13 acquisitions in 2010, mostly global, that is how Indian companies announced their arrival in the global FMCG space as they looked to fastrack their way to international expansion. Led by Godrej, which had seven acquisitions on its account, domestic firms, including Marico (2 buyouts) and Dabur (2 acquisitions) and Emami (1 buyout) went on a global buying-spree during the year. The total valuations of the acquisitions could not be ascertained as the firms decided to keep it under wraps except in one or two cases.  http://www.indianexpress.com/news/domestic-fmcg-cos-fastracked-expansion-via-buyouts/726409/

Food in the fast lane

Although the market for ready-to-eat (RTE) and ready-to-cook (RTC) foods is still nascent, the fact that there is heightened activity from brands in both these segments points to the opportunities they see in them. While there is a lot more in Indian cuisine in RTE, RTC foods are more about non-traditional foods such as soups, noodles and pasta; vermicelli is also popular. For instance, Maggi is seeing some serious competition from big and small, national, regional and retail brands now. http://www.hindustantimes.com/Food-in-the-fast-lane/Article1-637647.aspx

HUL: from survival to revival

A year ago, India’s largest consumer firm by revenue seemed to be floundering. Here’s how the company achieved a turnaround. http://www.livemint.com/2010/12/13220503/HUL-from-survival-to-revival.html

Telcos unlikely to start tariff war in 3G

Consumers awaiting high-speed third-generation (3G) services should be ready to shell out a premium for data as telecom players gear up to rollout their services over the next few months. Industry experts say the price war fought during the 2G days will not hold true for the 3G services considering the hefty prices that operators have paid for acquiring licences. http://timesofindia.indiatimes.com/business/india-business/Telcos-unlikely-to-start-tariff-war-in-3G-/articleshow/7097008.cms

All that’s cheap is not good

Avoid buying stocks based on cost alone. Highly priced stocks may be expensive but provide better returns. Whenever we buy a product or service, we look at its cost. Cheaper products seem more affordable and hence attractive to buy. The same applies to stocks. Low-priced ones attract more buying interest. However, do they give good returns? One must know how to compare stocks, the pricing and how to find value for money. http://www.business-standard.com/india/news/all-that%5Cs-cheap-is-not-good/417884/

My Portfolio

Return

My Portfolio BSE Sensex NSE Nifty
This Week 1.46% 1.82% 1.56%
This month -0.21% 1.75% 1.46%
This Year 8.80% 13.74% 14.38%
Since 1-1-2009 122.78% 105.92% 101.04%
Since 1-1-2008 49.74% -1.69% -2.15%
Since 1-4-2007 86.03% 51.96% 55.66%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 8 3 Years 97
Graphite India Telecom 5 2 Months 1
HUL FMCG 5 5 Months 12
Mangalam Cements Cements 5 3 Months -17
Swaraj Engines Auto Ancillory 5 2 Months 3

Shares I bought this month

Company Average Cost
Tata Sponge Iron 368.41
Graphite India 95.62
BHEL 2,339.58
HUL 302.01
Tractors India Ltd 690.22
Swaraj Engines 491.85

Shares I sold this month

Company Average Price

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 219 2.6 Years
Dabur India 153 4.6 Years
Tata Global Beverages 115 2.0 Years
Berger Paints 159 3.8 Years
Infosys 97 3.0 Years

Top 5 most loss (absolute)

Company Return % Average Holding Period
KSB Pumps -11 3 months
Honeywell Automation -14 1 month
Tata Communication -25 11 months
Mangalam Cement -17 2 months
Divi’s Laboratories -15 1 month

Archive of previous portfolio reviews

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