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.
