VALUE INVESTMENTS IN INDIAN MARKETS

Monday, May 21, 2018

Summary of Past Performance

Hi All, Its back to markets and value picking !! The market seems directionless and its time to see how our portfolio has done since we discussed last !! I am glad that this blog does not make recommendations every week. So that will also test our " Long term " Mantra .. does it really work? We last discussed our picks in May 2016. We are almost 02 years done.

There were 11 stocks in our portfolio. Assuming that we had invested 01 Lakh in each, our investment would have been 11 Lakhs. What would our return be

SN	STOCK	Reco in May 16	CMP- May 18	Dividend	Return PA	At 100K per stock	CMP
1	IB Securities	18	420	0	1116.67	5556	2333333
2	Gruh Finance	258	659	7	79.07	388	255426
3	Piramal	1263	2600	18	53.64	79	205859
4	Ibulls Hsg	713	1100	80	32.75	140	154278
5	SJVN	28	42	4	32.14	3571	150000
6	Balmer Lawrie	580	832	16	23.10	172	143448
7	Smartlink	94	120	4	15.96	1064	127660
8	Zensar	961	1216	24	14.52	104	126535
9	Swelect	414	380	16	-2.17	242	91787
10	PFS	40	21	2	-21.25	2500	52500
11	IB Power	9	4.7	0	-23.89	11111	52222
							3693049

The 11 Lakh that we would have invested would have been around 37 Lakhs. There were three underperformers among the eleven. Reiterates the principle , that diversification is critical for better returns ... Tune in for More Later !! Our picks for 2018-2019

Friday, August 25, 2017

STOCK - 2017-MOIL

1. Identifying Value when the index is near life time highs is a challenge . And yet, if you diligently seek, U may find!! I Think MOIL is one such stock in times as these.

2. MOIL has reserves of 81.47 MT as per its last annual report. It has seven mines in Maharashtra and three in Madhya Pradesh with a total mining area of 1,614 hectares, as of March 31, 2016. It acquired new mining area of 988 hectares and was allotted an additional 384 hectares by the Madhya Pradesh government. While there are several other players in this space, MOIL towers over them with 50% market share and the quality of its manganese ore which commands a premium in the market place. My reasons for this stock :-

(a) About 95% of manganese ore is used in steel-making, directly or indirectly. India is still dependent on manganese ore imports to meet around one-third of the steel producers’ requirement.

(b) The government is looking at boosting the country’s overall steel capacity to 300 MT by 2025.

(c) For the quarter ended June 2017, the company reported strong 84.9% year on year growth in revenue. This was led by higher volumes (up 20.9%) as a result of pickup in domestic steel demand and realisation that benefitted from higher international manganese prices.

Numbers

3. Now for some number crunching:-

(a) Market Capitalisation – 4800 Crores

(b) Cash in Hand -2300 Crores (195 Rs/share)

(d) EPS - Rs 25

(e) Yield - 2%

Looks a good candidate for SIP for a TP of 450 Rs at least in 12-18M

( ROI-25-30%)

Saturday, February 14, 2015

OUR PERFORMANCE TILL DATE

PORTFOLIO ANALYSIS

SN	STOCK	REC COST	DATE	CMP	DIV	%	RECO	REMARKS

1	IIB Housing finance	455	Jan 15	600	8	25	Accumulate
2	IB Securities	11	Jan-13	25	8	200	Hold. Buy on declines Book Profits. Buy back at lower value	Good div yield (16%)
3	Smartlink	50	Jan-13	77	4	140
4	Swelect	130	Jan-13	432	12	333
5	SJVN	18.5	Jan-13	24	1.8	80	Hold On
6	PFS	11.5	Jan-12	47	0.8	320	Hold On
7	Balmer Lawrie	475	Jan-12	900	60	200	Hold On	Bonus was at 2:3
8	Geojit	16	Jan-12	41	4	213	Prefer Sl 1
9	IB Power	9	Jan-12	12	0	11	Most promising	IPO was at 45
10	Gruh Finance	575	Jan-12	1980	0	342	Hold On	Catering for 1:5 split and 1:1 bonus
11	Cera	190	Jan-12	1637	0	856	Sell. Book profits	Overvalued at CMP
12	Sonata	22	Jan-12	134	12	614	Sell. Book profits	Overvalued at CMP
13	Zensar	120	Jan-12	656	7	543	Hold On
14	Piramal	390	Jan-12	770	70	213	Hold On
15	Sterlite Tech	28	Jan-12	70	0	211	Sell. Book profits Recommend Exit in 2014
16	Geodesic	40	Jan-12	4	0	-18		Underperformers
17	Alok	11	Jan-12	13	0	18		Underperformers
	NHPC	19	Jan-12	20	0	47		Underperformers