Presentation On Portfolio Mngt

Prof. Udayan Das

What is a PORTFOLIO??? Portfolio is an appropriate mix of individual stocks or collection of investments held by institutions or a private individual for diversifying risk and its return. “ Money is like manure. We have to spread it around, otherwise it will smell.”

Fundamental analysis tools • • • • • • •

About Company Earnings Current valuation Future earnings growth Debit status Company’s announcements PAT (profit after tax)

Risk return analysis of different sector in India

PSU

Stocks we have taken • • • • • • •

ITBANKEXPSUPOWERAUTOMETALREALTY-

INFOSYS SBI ONGC NTPC Hero Honda TATA Steel DLF

IT- Why Infosys? • • • •

Infosys bags five-yr outsourcing deal from BP Infosys' Global Education Center (GEC) Infosys moving towards result-based pricing Infosys most admired Indian company: WSJ survey • Infosys eyeing Tier-II cities for expansion

Comparison

Attribute WIPPRO PE ratio 28.24 (1) EPS (Rs) 20.30 (1) Sales (Rs crore) 5,287.90 (2) Promoters 79.68 (3) holding Net profit margin 14.14 (1) (%) Dividend yield 0.68 (1) Debt equity ratio 0.40 (1)

TCS 12.95 (3) 47.99 (2) 5,744.40 (3) 75.09 (2)

INFOSYS 21.56 (2) 101.73 (3) 5,201.00 (1) 16.48 (1)

20.74 (2)

27.52 (3)

2.21 (3) 0.01 (2)

1.09 (2) 0 (3)

Quarterly results 22.25 (1)

23.56 (2)

26.47 (3)

Market 85,980.85 (2) capitalization in crore

61,989.42 (1)

124,036.98 (3)

Overall weights 13

20

21

AUTO-Why HERO HONDA • Hero Honda reported 83.28% jump in quarterly profit after tax to Rs 5001.1 million, which is all time high. • Over 59% share in domestic motorcycle market.

Comparison

Attribute

HERO HONDA MAHI & MAHI MARUTI SUZUKI 25.13 (1) 29.02 (2) 35.92 (3) 64.18 (3) 30.69 (1) 42.18 (2) 3,822.44 (1) 4,242.59 (2) 6,493.00 (3) 54.96 (2) 27.39 (1) 54.21 (2)

PE ratio EPS (Rs) Sales (Rs crore) Promoters holding % Net profit margin 10.30 (3) (%) Dividend yield % 1.24 (3)

6.22 (2)

5.72 (1)

1.12 (2)

0.23 (1)

Debt equity ratio 0.02 (3)

0.77 (1)

0.07 (2)

Quarterly results 12.94 (3) % Market 32,209.61 (2) capitalization (in cr.) Overall weights 21

9.40 (2)

8.70 (1)

24,834.11 (1)

43,492.45 (3)

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18

REALTY- Why DLF???  DLF conferred "Best Global Developer Award, 2009" by Euromoney  DLF garners Rs 100 cr from bookings of Delhi flats  Haryana to mull giving nod to DLF's Rs 1,703 cr project  DLF Metro on expansion spree  DLF shifts focus to hospitality

PSU- Why ONGC????  ONGC wins 17 oil and gas blocks in NELP VIII.  ONGC discovers gas in Tripura  ONGC to invest Rs 50,000 cr in oil, gas fields

Comparison Attribute

BHEL

ONGC

NTPC

PE ratio

38.50 (1)

16.02 (3)

21.72 (2)

EPS (Rs)

64.11 (2)

75.40 (3)

9.95 (1)

Sales (Rs crore)

5,875.36 (1)

14,945.44 (3)

12,527.97 (2)

Promoters holding %

67.72 (1)

74.14 (2)

89.50 (3)

Net profit margin (%)

11.36% (1)

23.50% (3)

18.11% (2)

Dividend yield %

0.70% (1)

2.71% (2.5)

2.71% (2.5)

Debt equity ratio

0.01 (3)

0.20 (2)

0.58 (1)

Quarterly results NPM% 7.71 (1)

30.44 (3) 17.17 (2)

Market capitalization in crore Over all weights

119,641.14 (1)

12

252,753.81 (3)

23.5

178,267.71 (2) 17.5

BANKEX- Why SBI??? • SBI plan to open four crore deposit account by March 2011 At present, the bank has about five crore deposit account holders in rural areas and one crore accounts on advances side. • The bank is using technology to cover villages where banking services are not available Meanwhile, SBI launched a special product called Defence Salary Package (DSP) for Army personnel and aims to open about 12 lakh accounts under the scheme

comparison Attribute

HDFC

SBI

PE ratio EPS (Rs) Sales (Rs crore) Promoters holding % Net profit margin (%) Dividend yield % Debt equity ratio Quarterly results % Market capitalization in crore Over all weights

31.71 (2) 52.78 (1) 4,093.10 (1) 19.29 (1) 11.35 (1) 0.60 (1) 9.75 (2 ) 13.75 (2) 70,595.13 (1)

17.16 (1) 143.67 (2) 17,472.76 (2) 59.41 (2) 12.03 (2) 1.22 (2) 12.81 (1) 11.08 (1) 151,442.70 (2)

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METAL- Why TATA STEEL???  Tata Steel looks to acquire mines for Corus  Tata Steel to raise up to Rs 5,000 crore  Merger of Hooghly Met Coke & Power Company Limited (HMPCL) with Tata Steel  Tata Steel subsidiary raises stake in Riversdale Mining Limited to 19.38%

Comparison Attribute Sterlite Industries PE ratio 45.43 (1) EPS (Rs) 17.45 (2) Sales (Rs crore) 2366.77 (1) Promoters holding % 61.71 (3)

Tata Steel 7.48 (1) 71.18 (3) 5615.55 (3) 31.18 (1)

Hindalco Industries 10.48 (2) 12.23 (1) 3899.49 (2) 36.10 (2)

Net profit margin (%)10.05 (1)

21.09 (3)

11.87 (2)

Dividend yield % 0.43 (1) Debt equity ratio 0.27 (3) Quarterly results 4.42 (1) NPM % Market capitalization 58,306.01 (3) in (cr.)

2.90 (3) 1.34 (1) 13.95 (3)

0.76 (2) 0.35 (2) 12.09 (2)

40,362.00 (2)

24,761.13 (1)

20

16

Overall points

16

POWER- Why NTPC? • Securing coking and thermal coal supplies • Setting up a power exchange • NTPC acquires 44.6% Stake in TELK

Comparison

Attribute

Reliance Infra.Tata Power

NTPC

PE ratio

28.2131.39

21.01

EPS (Rs)

47.1841.65

9.95

Sales (Rs crore)

2,446.332,015.62

Face Value (Rs)

1010

Net profit margin (%)

10.7312.32

Last bonus

1:11:5

Last dividend (%)

70115

Return on average equity

10.8110.66

PAT (Rs. Cr.)

1,138.88922.20

12,527.97 10 18.11

8 13.9 8,201.30

Allocation of Funds Company name

Allocation amount

% of investment

Beta co

Infosys

1,00,000

10%

ONGC

1,00,000

20%

NTPC

1,00,000

10%

TATA Steel

1,00,000

20%

0.65 0.80 0.66 1.49

SBI

1,00,000

10%

Hero Honda

1,00,000

10%

DLF

2,00,000

20%

1.05 0.41 1.49

Conclusion • It is our primary investment with the creation of the portfolio. So we have taken some of the good or best stocks in it. But as time changes, out portfolio can change according to the need.