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Portfolio Assignment
Portfolio Assignment
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
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
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
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
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
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
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
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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