Saturday, March 31, 2012

Performance Review - Virtual Portfolio

 
We introduced Virtual stock portfolio of 10 stocks worth Rs 1 million here. While it has been a short period of just about 4 months, it is customary to evaluate the portfolio performance at the end of the financial year.



Scrip
Buy
price
CMP

Qty
(No.)
Invest.
Rs lakh
MV  
Rs lakh
Gains %
1
Bajaj Electricals
181.00
195.95
550
1.00
1.08
8.3
2
Balmer Lawrie
537.65
533.70
185
0.99
0.98
-0.7
3
Corporation Bk
352.00
424.80
287
1.01
1.22
20.7
4
Hawkins Cooker
1,500.1
1,532.05
67
1.00
1.02
2.1
5
Hinduja Global S
321.10
325.00
310
1.00
1.01
1.2
6
IL&FS Inv Mgrs
26.75
27.00
3,740
1.00
1.00
0.9
7
JB Chm Pharma
71.95
61.00
1,390
1.00
0.84
-15.2
8
South Indian Bk
21.95
24.70
4,560
1.00
1.12
12.5
9
Tata Global Bev
88.25
112.35
1,130
1.00
1.27
27.3
10
VST Industries
1,115.2
1,455.15
90
1.00
1.30
30.5

Total



10.00
10.88
8.8%

Sensex has returned 5.6% in the same period, so this portfolio has beaten the index comfortably.

Annualised returns of 25% is decent performance anyday, never mind if it’s virtual or notional. Having said this, we should not expect repeat of similar returns in future across periods and cycles.

Portfolio Moves
If this was my actual portfolio I’d not have made any change to it, and let it take its course. But to give the portfolio review a semblance of activity, we make just one change:

Exit VST Industries:
We are mindful that a hefty dividend will be announced in the next few months which will not hurt the returns but the stock has run up a bit, and the opportunity cost of holding it comes in the way.

Enter Unichem Laboratories:
Unichem Laboratories Limited (CMP: Rs 132.95, FV: Rs 2) is an established midcap Pharma company engaged in manufacturing of formulation products and Active Pharmaceutical Ingredients (API). Unichem has aligned its formulation segments into 7 divisions- 3 operating in Acute Therapies and 4 in Chronic Therapies. Ampoxin, Losar H, Losar, TGTOR, Olsar, Unienzyme and Telsar are some of its prominent brands in local markets. Unichem has strong focus on domestic formulations with plants at Baddi, Roha, Ghaziabad, Goa, Pithampur & Sikkim. Besides, Unichem has subsidiaries in UK, USA, Brazil and South Africa.

Consolidated sales of Rs 824.03 crore in FY11, PAT Rs 95.19 crore, EPS Rs 10.47
(Subsidiaries are incurring losses)

Standalone performance highlights of Unichem Laboratories are:


S.No
Particulars
FY 2010
FY 2011
 9mon-Dec11
9mon-Dec10
1
Sales (Rs crore)
690.59
764.73
603.54
581.60
2
PAT (Rs crore)
133.62
108.71
59.22
93.65
3
EPS (Rs)
14.77
11.95
6.53
10.32
4
ROE%  
21.88
16.03


5
ROCE%
26.41
19.92


Pursuant to court convened general meeting (minutes available on NSE under corporate announcements), there is a proposal to realign share capital between promoter group companies.
Performance for 9 month period ended 31-12-2011 has not been too encouraging, but company should be seen improving its performance from here.

 So now the overall portfolio looks like this:
No
Scrip
Entry price Rs
Qty
(No.)
Invest.
(Rs lakh)
MV
(Rs lakh)
1
Bajaj Electricals
181.00
550
1.00
1.08
2
Balmer Lawrie
537.65
185
0.99
0.98
3
Corporation Bank
352.00
287
1.01
1.22
4
Hawkins Cooker
1,500.1
67
1.00
1.02
5
Hinduja Global Sol
321.10
310
1.00
1.01
6
IL&FS Inv Mngrs
26.75
3,740
1.00
1.00
7
JB Chem & Pharma
71.95
1,390
1.00
0.84
8
South Indian Bank
21.95
4,560
1.00
1.12
9
Tata Global Bev
88.25
1,130
1.00
1.27
10
Unichem Laboratories
132.95
948
1.26
1.26

Total


10.26
10.83

After accounting for short term capital gains incurred on sale proceeds of VST Industries, we have accumulated 948 quantity in Unichem Laboratories at closing price of 30-03-2012. It’s only a coincidence that in serial order, 10th stock is replaced by 10th, they are still in alphabetical order. From next review onwards we will have to incorporate Portfolio IRR since transactions are on different dates.

Disclaimer: This is only for academic purpose & conceptual understanding. Nothing in this post constitutes a buy or sell recommendation. Read detailed disclaimer on the blog and do your due diligence and consult your financial advisor.

1 comment:

  1. do you have 'be a dividend millionaire by rubillo' ebook...
    can you upload it in case it is available with you..

    thks

    sg

    ReplyDelete