rOLL nO 63

PG - Finance

Equity Portfolio:
The investment activity was started on 09th July 2015. The stocks that were
chosen were
1.
2.
3.
4.
5.
6.

Sun pharma
Dr. Reddys Laboratories
Apollo tyres
Bharti Airtel
BHEL
Britannia

The reason for choosing these stocks were

1. Financial analysis of three companies Sun pharma, Dr. Reddys laboratories
and Cipla was performed recently and it was found that Sun pharma, and Dr.
Reddys laboratories have strong financials. So these companies were chosen
2. Likewise, financial analysis was done for Apollo tyres and it was chosen
3. To divest the portfolio, other industries prospects were analysed. In case of
telecommunication industry, Bharti Airtel was chosen because of its Q1-2015
performance results. Also there were news about Airtel starting 4G services in
India. Considering the growth, this stock was chosen.
4. BHEL was chosen for the purpose of investing in a Public sector company and
Britannia was chosen since I was following this companys stock for some time.
Top down investment approach was followed for the first three companies and in
case of BHEL and Britannia, bottom-up approach of investing method was
followed.
Note: All the articles that were referred to buy/sell stocks are added as
reference at the end of the word document.
So the portfolio as on 09th July, 2015 was

Company

Sun pharma
Apollo tyres
Dr. Reddy's
Laboratories
Bharti Airtel
BHEL
Britannia

No of
Stocks

Stock Price
Purch
ase
Selling
867.7
20
5
0
172.5
25
5
0
10
15
25
10

3712
432.3
5
264.4
2804

0
0
0
0
Total
Value

Total
Value
Purchas
e
17355
4313.75
37120
6485.25
6610
28040
99924

As on 17th July
1. A part of Sun pharma stock was sold due to news that Ranbaxys cost is going
to affect the profits of sun pharma.
2. In spite of Airtel tie up with Foxconn to manufacture 4g handsets for affordable
prices and its plan to start 4G services in many locations in India, it stock price
faced more volatility. Few reasons for that were found to be its stand on net
neutrality, its problem with network tower infrastructure in few locations. So this
stock was also sold.
3. Additional shares of BHEL and new shares of power grid was bought from the
money inflow after selling stocks of sun pharma and Airtel. Power grid was
chosen because of their plan to take up project in Maheswaram project and their
plans to invest 300 crore rupees for transmission project.
So the trade performed on 17th July was,
Bought/S Compan
old
y

Sold
Sold
Bought
Bought

No of
Stocks

Bharti
Airtel
Sun
pharma
Power
Grid
BHEL

Stock Price
Purcha Selli
se
ng
428.
15
432.35
7
943.
10
867.75
1
25
10

141.15
285.3

Total Value
Purcha Sellin Profit/L
se
g
oss
6485.2
6430.
5
5
-54.75
8677.5
3528.7
5
2853

9431

And the portfolio as on 17th July was,

Company

Sun pharma
Apollo tyres
Dr. Reddy's
Laboratories
BHEL
Britannia
Power Grid
BHEL

No
of
Stoc
ks

Stock
Price
Purchas Sellin
e
g
10
867.75
0
25
172.55
0
10
25
10
25
10

3712
264.4
2804
141.15
285.3

0
0
0
0
0

Total
Value
Purchase
8677.5
4313.75

37120
6610
28040
3528.75
2853
91143
The remaining amount was not invested in any stock and was kept aside for
future investment.

753.5

As on 21st July 2015

1. All the remaining stocks of Sun pharma were sold on this date. Sun pharma
performance results were disappointing and their profits reduced by 16 %. The
stock price tanked big time and went as low as 827 rupees. Because of the fall in
price, loss of Rs. 405 was incurred.
2. Infosys performance results were announced and its sales grew by 15 %. Also
because of the new CEO Vishal Sikka, there was positive mood in the
organization and he also took reforms to revive the organization. This led to
purchase of the stock.
The trade performed was

Bought/
Sold

Sold
Bought

Compan
y

No of
Stocks

Sun
pharma
Infosys

10
15

Stock Price
Purcha Sellin
se
g
827.2
867.75
5
1104

Total Value
Purcha Selli
se
ng
8272
8677.5
.5
16560

Profit/L
oss
-405

The portfolio was

Company

Infosys
Apollo tyres
Dr. Reddy's
Laboratories
BHEL
Britannia
Power Grid
BHEL

No of
Stock
s

Stock
Price

Total
Value

Sellin
Purchase g
15
1104
0
25
172.55
0
10
25
10
25
10

3712
264.4
2804
141.15
285.3

0
0
0
0
0

Purchase
16560
4313.75
37120
6610
28040
3528.75
2853
99025.5

As on 28th July 2015,

1. Stocks of Spice Jet was bought due to transformative actions taken by Ajay
Singh. He pledged over half of his stock to revamp the organization. Also during
the same week, performance results of Spice Jet was published and it posted net
profit of Rs. 71 crores and it reported profits for the second quarter. Looking at
the top management commitment and performance results, the stocks were
bought.

2. And Tech Mahindra reported net profit rise of 7.2%. Due to positive conditions
in technology sector, Tech mahindra stocks were bought.
3. To buy these two stocks, a part of BHEL stocks were sold.
The trade was

Company

Sold
Boug
ht
Boug
ht

No of
Stock
s

Stock Price
Purch
ase
Selling

Total Value
Purchas Selli Profit/Lo
e
ng
ss
7106
284.25
6610
.3
496.25

BHEL

25

264.4

Spice Jet
Tech
Mahindra

25

27.1

677.5

10

522.4

5224

The portfolio was

Company

No of
Stocks

Stock Price
Purchas
Sellin
e
g
15
1104
0
25
172.55
0

Infosys
Apollo tyres
Dr. Reddy's
Laboratories
Tech Mahindra
Britannia
Power Grid
BHEL
Spice Jet

10
10
10
25
10
25

3712
522.4
2804
141.15
285.3
27.1

0
0
0
0
0

Total
Value
Purcha
se
16560
4313.75
37120
5224
28040
3528.75
2853
677.5
98317

As on 4th August
1. To diversify the portfolio, infrastructure sector was chosen; due to positive
macro-economic conditions and Prime ministers invitation to global companies
related to Make in India program, this sector was chosen. And DLF tried to
reduce its debt component by changing its asset (mainly capital assets). So DLF
stocks were bought. The remaining shares of BHEL were sold.
The trade was
Compa
ny

Sold
Boug

BHEL
DLF ltd

No of
Stocks

Stock Price
Total Value
Purch
Sellin Purcha Sellin Profit/Lo
ase
g
se
g
ss
10
285.3
282
2853
2820
-33
30 115.35
3460.5

ht
Portfolio was
Company

No of
Stocks

Stock Price
Purch
ase
Selling
15
1104
0
25 172.55
0

Infosys
Apollo tyres
Dr. Reddy's
Laboratories
Tech Mahindra
Britannia
DLF ltd
Spice Jet
Power Grid

10
10
10
30
25
25

3712
522.4
2804
115.35
27.1
141.15

Total
Value
Purchase
16560
4313.75

0
0
0
0
0

37120
5224
28040
3460.5
677.5
3528.75
98924.5

As on 10th August:
TATA companies tried to organize its ownership across different industries to help
each other business units. This action was done to cut down their debt and
increase the operating margin. Tata sons bought stakes in TITAN and
consolidated the ownership. This was seen as positive trend and stocks of Titan
was bought. To buy this stock, Power grid stocks and part of Apollo tyres stocks
were sold.
The trading information is
Company

Sold
Sold
Boug
ht

Power
Grid
Apollo
tyres
Titan

No of
Stocks

Stock Price
Purch
ase
Selling
25

141.15

15

172.55

20

328

Total Value
Purch
Sellin Profit/Los
ase
g
s
3528.7
138
5
3450
-78.75
2588.2 3121.
208.1
5
5
533.25
6560

The portfolio was,

Company

Infosys
Apollo tyres
Dr. Reddy's
Laboratories
Tech Mahindra

No of
Stocks

Stock Price
Purch Sellin
ase
g
15
1104
0
10 172.55
0
10
10

3712
522.4

0
0

Total Value
Purchase
16560
1725.5
37120
5224

Britannia
Titan
Spice Jet
DLF ltd

10
20
25
30

2804
328
27.1
115.35

0
0
0
0

28040
6560
677.5
3460.5
99367.5

As on 18th August:
All the stocks were sold on 17th august and the portfolio position was

Company

No of
Stock
s

Infosys
Apollo tyres
Dr. Reddy's
Laboratories

Stock Price
Purchas
e
Selling
1143.0
15
1104
5
10
172.55
192.2
4169.3
10
3712
5

Tech Mahindra

10

522.4

Britannia
Titan

10
20

Spice Jet
DLF ltd

Total
Value
Purcha
se
16560
1725.5
37120

2804
328

551.25
3290.0
5
336.35

28040
6560

25

27.1

27.05

677.5

30

115.35

129.05

5224

3460.5

Results:
Stocks

Profit/L
oss

Amount
invested

Bharti Airtel

-54.75

6485.25

Sun pharma

348.5

17355

BHEL

463.25

9463

Power Grid

-78.75

3528.75

Apollo tyres

729.75

4313.75

Infosys
Dr. Reddy's
Laboratories
Tech Mahindra

585.75

16560

4573.5
288.5

37120
5224

Retu
rn
0.84
%
2.01
%
4.90
%
2.23
%
16.92
%
3.54
%
12.32
%
5.52

Selli Profit/L
ng
oss
1714
6
585.75
1922
196.5
4169
4
4573.5
5512
.5
288.5
3290
1
4860.5
6727
167
676.
25
-1.25
3871
.5
411

Britannia
Titan
Spice Jet
DLF ltd

4860.5

28040

167

6560

-1.25

677.5

411

3460.5

%
17.33
%
2.55
%
0.18
%
11.88
%

The above table presents the net gain/loss of the portfolio and the return from
each of the stocks.
The net profit from the portfolio was Rs. 12293. The return from the
portfolio is 12.3 %.

Return
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%

16.92%
14.53%
11.88%
9.04%

2.96%

-0.84%

4.01%

-0.18%

Note: PSU is combined together as one component, but it includes power sector
(Power grid) and BHEL.

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