Portfolio performance

It is very hard for the market to give positive returns in the month of April and May without any backup from earnings. Still Nifty 500 index had given a returns of 1.71% in the last month with a very mix bag of earnings season. This is the time when management comes out and interacts with its shareholders and share the financials and future prospects of the business.

Earnings season for us was also mix bag, especially in regards to this activity. But last month threw a lot of opportunities to add quality stocks in our portfolio. We started this activity with 3 stocks and now we hold 7 stocks.


Let us have a quick glance on returns for the May before I reveal our portfolio.

Nifty 500 1.71%
Valueoperations portfolio 2.03%
Birla sun life small & Midcap fund (G) -1.9%
ICICI Prudential top 100 fund (G) 0.6%

So the winners for the May month is our Valueoperations portfolio. I will give credit to our surplus cash holding while couple of our favourite stocks like Lupin and Tech Mahindra plummeted and we got the opportunity to buy them at lower prices.

We have never shared and compared returns of the mutual funds before in this activity but thought it will be a good idea to find out also how the professionals are performing against us and the market. These two mutual funds are ranked number one in large and mid-caps growth fund.

So this is how our portfolio looks like:

Stocks 1st April 2017 1st June 2017 Performance
  Buy Price Holding Cost 31st May price Dividends received Current value + income Return
Indiabulls Housing Rs 998 253 Rs 252,494 Rs 1,160.60 Rs 2,277 Rs 295,908.8 17.19%
Hind Zinc Rs 291.10 338 Rs98,391.80 Rs 240.35 Rs 81,238.3 -17.43%
ONGC Rs 185.20 750 Rs 138,900 Rs 177 Rs 132,750 -4.43%
  10th May 2017        
Kitex Garment Rs 401 630 Rs 252,630 Rs 371.05 Rs 233,761.5 -7.46%
  18th May 2017        
Yes Bank Rs 1400 36 Rs 50,400 Rs 1431.35 Rs 51,528.6 2.24%
  29th May 2017        
Tech Mahindra Rs 360 491 Rs 176,760 Rs 390 Rs 191,490 8.33%
Lupin Rs 1090 92 Rs 100,280 1161 Rs 106,812 6.51%
Cash     Rs 192,894     Rs 195,171  
Total     Rs 1,262,749.80     Rs 1,286,383.20 1.87%
Nifty 500     7,995.05     8,350.95 4.45%


We are still underperforming the market returns because we did not found any good opportunities to allocate all of our cash. We also underperformed because of the poor performance of Hindustan Zinc and ONGC in the past two months.

Indiabulls Housing Finance

This is our star stock and we have covered this stock a lot on this blog from the past 2 years. We are happy with this stock and we might think to cut down our allocation after this month if it runs up more. Its stock price above Rs 1,300 enters into expensive zone.

Hindustan Zinc

We normally do not like to invest with the resource stocks. They are cyclical and it is impossible to predict the low and high levels of the cycle. We also do not like hefty dividends that management is paying out to shareholders from the past two years. If they still continue same this financial year than for us this stock will be trading at very premium price and we will be the first to exit from it. If they don’t and Zinc price remains stable at current levels, then there is a room to make some money this financial year on Hindustan Zinc. We have covered this stock on our blog in the past.


Another resource stock and it looks little better than Hindustan Zinc because we might see a big increase in its volumes in gas production. Again it will only see earnings grow if prices of gas and oil stabilise. We think once the geopolitical concerns disappear then we might see some stability in its commodity prices.

Kitex Garment

Kitex Garment had a very bad last quarter and also the full financial year. This is again one of our star stock and we expect it to perform well this financial year. We think their revenues will grow fast because of their investments in the US subsidiary. Last year with USA elections, there was lot of uncertainty in front of Kitex Garments vendors and we did see the order books shrinking and inventories climbing up. We are looking forward for its first quarter results and expect them to be positive.

Yes Bank

There are few private banks trading at cheap price and we got an opportunity to accumulate few when its stock price fell on the news of GNPA’s. We have recently covered this stock and shared our views on this blog.

Tech Mahindra

Tech Mahindra is another stock who got beaten by market on its Q4 results. The results were bad but we think this stock is sitting on sweet spot to grow its earnings faster than its peers. There was a very good opportunity thrown by market in May and we just grabbed that opportunity.


Pharma and IT stocks are getting beaten in this high markets. Lupin is our favourite pharma stock and we have kept our eyes on it from the time it was trading around Rs 1,800. So we have seen its stock price to almost halve in past one year. We did not accumulate a lot because we think there is still a good chance for the stock price to fall further. But same time we did not wanted to lose the opportunity of not buying it when especially it is trading in our valuation zone.


With this 7 stocks in our portfolio and still holding close to 20% of our portfolio in cash, we think we will outperform this financial year against our past year performance. The only risk we see is with Hindustan Zinc and ONGC. I think it would have been wise if we bought Indiabulls housing only in April and wait for more opportunities to rise in the May. But we learn from our mistakes and it is still too early to come to the conclusion as there are still 10 long months to go in this financial year.