As promised, the top stocks in my portfolio, at the beginning of the month. I have already published this for two prior months, and here is the portfolio as on May 02, 2014.
Notable additions during the month have been an increased exposure to IDFC. After a fairly stellar run in the middle of April due to the announcement of the new bank license, IDFC has been weak. I have taken advantage of this weakness to buy more. For me, IDFC represents an investment for 5 years, at least. Hopefully, over that period, it will become a multibagger. Right now, it is weak because a) It lends mostly to Infrastructure, and infrastructure has been a dog. People are afraid of NPA’s and rightfully so. But IDFC seems to have managed its NPA situation really well, even in a difficult environment. b) There is fear that the short term costs of IDFC transiting to a bank (increased SLR, CRR requirements, and increased expenses on opening branches) may put a lid on profitability and c) Uncertainty over the path to convert to a bank, and the likely FII dilution as a result.
For me, all of these are short term things, and ignores a) the phenomenal performance of IDFC NBFC relative to PSU banks in terms of NPA’s b) the excellent performance of IDFC PE Fund, IDFC AMC and other subsidiaries. and c) the increased long term profitability resulting from an ability to get CASA deposits.
My largest purchase is the month has been another AMC, IL & FS Investment Managers. I really like the Fund Management business. Once you get a fund going, you have a fixed income for several years, and in addition, you might just get additional income from Carry. IL & FS has a great track record, gives excellent dividends, and I think this will continue, especially if the Indian Investment Climate improves.
Another stock which has underperformed in the last month in Oberoi Realty. While all realty stocks have done poorly, Oberoi has done badly too. I expect the May 10 results to be poor (probably the last set of poor results), and if so, I will buy into the price dip.
This month, I also bought Clariant Chemicals, adding to my earlier position. I think that my initial purchase of Clariant was sound (around 580 levels). I am not sure my current purchases are sound. I will put up a detailed note on Clariant once the March results are out. However, I am holding on, since I expect a dividend of 350 to 400 Rs., and I could use the tax free income, and subsequent stripping loss.
This month, I added to RS Software and Munjal Showa, though the positions are still too modest to show up here. I will keep adding to these positions.
| Stock | Latest Price | Inv. Price | Overall Gain % | % of Portfolio |
| Selan Explore | 497.6 | 315.5 | 57.71 | 3.9 |
| Cummins | 524.45 | 404.1 | 29.78 | 3.7 |
| IDFC | 110.55 | 107.3 | 2.99 | 3.6 |
| Balkrishna Ind | 528.3 | 231.2 | 128.48 | 3.0 |
| Larsen | 1,263.55 | 949.9 | 33.01 | 2.5 |
| ILandFS | 13.7 | 13.6 | 0.64 | 2.5 |
| Kaveri Seed | 656.35 | 296.6 | 121.26 | 2.4 |
| Oberoi Realty | 208.05 | 177.6 | 17.14 | 2.4 |
| Mayur Uniquoter | 288.6 | 111.0 | 159.92 | 2.3 |
| Sun Pharma Adv | 170.45 | 121.9 | 39.8 | 2.3 |
| Clariant | 705 | 615.9 | 14.47 | 2.3 |
| NMDC | 152.2 | 121.7 | 25.11 | 2.3 |
| MPS | 363.75 | 123.4 | 194.85 | 2.2 |
| NTPC | 114.45 | 131.6 | -13.02 | 2.1 |
| Sesa Sterlite | 180.55 | 151.0 | 19.57 | 2.0 |
| Hind Zinc | 126.1 | 121.0 | 4.21 | 1.8 |
| Tata Inv Corp | 477.1 | 405.0 | 17.81 | 1.8 |
| Jaypee Infra | 24.85 | 18.6 | 33.48 | 1.7 |
| EID Parry | 152.35 | 139.7 | 9.09 | 1.7 |
| ITC | 340.25 | 301.0 | 13.05 | 1.7 |
| IRB Infra | 115.8 | 81.3 | 42.35 | 1.7 |
| Bharat Forge | 406 | 272.3 | 49.13 | 1.7 |
| eClerx Services | 1,239.80 | 757.3 | 63.71 | 1.6 |
| Reliance | 928.1 | 756.1 | 22.74 | 1.6 |
| ICICI Bank | 1,252.40 | 933.8 | 34.12 | 1.5 |
| Sobha Developer | 377.3 | 288.6 | 30.72 | 1.5 |
| TCS | 2,208.45 | 1771.2 | 24.69 | 1.5 |
| Indian Hotels | 70.95 | 53.3 | 33.2 | 1.4 |
| Poly Medicure | 481.25 | 278.4 | 72.89 | 1.4 |
| Bajaj Electric | 287.75 | 209.8 | 37.13 | 1.4 |
| Munjal Auto Ind | 52.95 | 34.0 | 55.77 | 1.4 |
| PI Industries | 249.65 | 144.6 | 72.61 | 1.3 |