Inside Our Portfolio – 2

This video talks about positions in Delta Corp, AU Small Finance Bank, Bandhan Bank, Bajaj Finserve, HCL Infosys, Himadri Speciality Chemicals, Sterlite Technologies, L&T Technology Services Going light on this week as there is no commitment to buy stocks, stops on existing positions getting closer to current prices indicates that market will take a breather. Having a little extra transaction cost is better to having weak stocks in the portfolio, getting in and out of stocks benefits in having a smooth equity curve, which brings confidence to invest more in the portfolio.

272% profits from Hitachi investment…


The summer in 2014 was hotter than it was in the previous years. Air conditioner sales peaked & Hitachi Home Solutions, one of the leaders in this segment, came into our portfolio following the consumer durable growth story in July 2014. We identified this company when the stock was at 314.00.

The company continued its robust results in the September 2014 Quarter, which helped us increase our exposure in this company. We reached our maximum permissible 3% exposure when the stock was priced at 900.


Today there is an announcement that this company is to be acquired by Johnson Controls, a global leader in HVAC Equipments. Following this news, Hitachi stock has closed at Rs. 1169.00 a share today.

As of 22nd January 2015, the net gain on this stock from its first investment is 272% in 6 months. An annualized return in this business is 528.65%. This stock is not going to stop its run and we are likely to hold till it gets exhausted.

Wireless is a boon to battery companies…..

I invested in Eveready Industries in the month of June 2014 after the stock came into our ranking tables. The ranking table measures a stocks earnings and its stock price against  a group of stocks and ranks them. We invest in those stocks that have both their earnings(EPS) and price (PRS) above 80. At that time the stock price was ₹. 45.00. At the price, the stock’s chart was showing pretty high strength, it has a good run up I price. I normally don’t buy into a stock that has already run up. Now, the decision has changed, I had committed myself that I will follow the system without second guessing or judgement.


After I bought the stock it was going higher and higher. By September it crossed the 100 mark.

BatteryAABy the end of November 2014, it has reached 195.00, has given 350% profit on our investment in 5 months period. September quarter results came out and the performance was stronger, but, still was not in a position to give a growth signal, which we consider when a stock gives 25% plus growth in its sales as well as its earnings in comparison with the same quarter of the previous year.

One day when I had asked my son to buy batteries for the mouse and keyboards at home. He bought 6 nos, stating that, we need that much as it is used in the clocks, remotes, keyboards and mouse. This made me think, if we are consuming so much, it would be the same to others around the country too. With the world going wireless, usage of batteries has at least multiplied 3 times. And this is  going to increase going forward. A reason enough for Eveready to sky rocket in its sales and earnings. Eveready has been the leader in this industry segment, when we think of batteries we only think of ‘EVEREADY’, it has become a ‘XEROX’ for copy machines. This means, there is a very high potential for this stock to give us 1000% profits along with some fancy dividends. The beauty is that, all of this profit will be tax free, as the period it would take to hold on to this growth is going to be above 365 days. What a nice choice to be invested in Equities.

This incidence also made me think, if I can search such kind of supporting thoughts to find companies that have the highest potential to growth, the returns on my investments will be triple digit year-on-year.