Tag Archives: Zensar Tech

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: 16 January 2011

My portfolio lost 3.15% in the last week, the biggest weekly loss in over a year. BSE Sensex lost 4.22% and NSE Nifty 4.23%. The loss in the month to date for Sensex is 8.04%, for Nifty 7.82% and for my portfolio 4.79%. Inflation continued to be the major news that affected the market negatively.

Zensar Technology, NIIT Technology and Bharti Airtel gained 1% to 4% while TIL, L&T, GAIL and Reliance lost 6% to 8%. I bought Tech Mahindra, Zensar Technology and Clariant Chemicals in the last week.

The market may go up or down J , but what an investor should do is use the opportunity to buy good companies at a better price. Keep buying, slow and steady.

Good buys in my watch list

Company Sector 3 Years Target Current Price Expected Margin
Swaraj Engines Auto Ancil 850.00 471.65 80%
Zensar Tech IT 318.00 180.00 77%
Honeywell Automation Engineering 4,100.00 2,362.90 74%
Bharti Airtel Telecom 551.00 342.70 61%
Clariant Chemicals Chemicals 1,095.00 735.25 49%

I will be buying all of the above in small quantities in the coming week. All of them are already in my portfolio.  Even though it is advised to diversify into multiple companies, it is better to keep within a manageable numbers.  I have 33 companies at present, but would bring it down to 30 as soon as I get an opportunity to sell some of them at a good price.


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


Zensar Technologies

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. With more than 5400 associates and sales and operations presence across US, UK, Germany, Sweden, Finland, Middle East, South Africa, Singapore, Australia, Japan and Poland, the Company delivers comprehensive services in mission-critical applications, enterprise applications, e-business, BPO Services. Zensar is the world’s first enterprise-wide SEI CMM Level 5 Company and now a CMMI Level 5 Company with industry expertise that spans across Retail and Distribution, Banking, Financial Services and Insurance, Healthcare and Life Sciences, Manufacturing, Energy and Utilities.

Finished Products/Services

Software development

Industry

Information Technology, Computers – Software, Business Process Outsourcing (BPO)

Depend on Industries:

Retail and Distribution, Banking, Financial Services and Insurance, Healthcare and Life Sciences, Manufacturing, Energy and Utilities

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

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