SAPM (MB 767) Portfolio

Management
Abhishek Mishra
215120003
Paper Trading Portfolio

A paper trade is a simulated trade that allows an investor to practice buying and selling without
risking real money. The term dates back to a time when aspiring traders would practice on
paper before risking money in live markets. While learning, a paper trader records all trades by
hand to keep track of hypothetical trading positions, portfolios, and profits or losses.

After the commencement of the assignment, a paper trading portfolio was created using the
Stock Trainer application. The available limit on the application was ₹ 5,00,000. Stocks were
bought in real time during market hours using both market and limit orders. The following
stocks were purchased at the buy price and the quantity mentioned. The current price these
stocks are trading at has also been mentioned. The total investment and the current value of the
investment including the gain or loss has also been calculated.

Stock Buy Date Buy Price Current Price Quantity

BEL 09/08/21 ₹165.00 ₹201.85 10
IOC 09/08/21 ₹104.00 ₹134.65 15
SHREECEM 10/08/21 ₹27,282.00 ₹29,047.20 2
RELIANCE 20/08/21 ₹2,155.00 ₹2,498.95 10
HDFCBANK 20/08/21 ₹1,503.00 ₹1,593.95 10

Stock Investment Value Return Gain/Loss

BEL ₹1,650.00 ₹2,018.50 ₹368.50 22.33%
IOC ₹1,560.00 ₹2,019.75 ₹459.75 29.47%
SHREECHEM ₹54,564.00 ₹58,094.40 ₹3,530.40 6.47%
RELIANCE ₹21,550.00 ₹24,989.50 ₹3,439.50 15.96%
HDFCBANK ₹15,030.00 ₹15,939.50 ₹909.50 6.05%
Rationale

1. BEL
• Stock passes majority of CANSLIM Investment criteria (47.3% returns for Nifty 500
over 1.6 years)
• Consistent highest return stocks over 5 years - Nifty500
• Rising net cash flow and cash from operating activity (375.3% returns for Nifty 500
over 5.9 years)
• Company with high TTM EPS Growth (413.9% returns for Nifty 500 over 5.4 years)
• Stock with improving cash flow, with good durability (875.5% returns for Nifty 500
over 5.1 years)
• Growth in net profit with increasing profit margin (QoQ)
• Growth in quarterly net profit with increasing profit margin (YoY)
• Company with No Debt
• Strong cash generating ability from core business - improving cash flow from operation
for last 2 years
• Book Value per share has been improving for last 2 years
• Company with zero promoter pledging
• FII / FPI or institutional investors have been increasing their shareholding
• Recent results show growth in operating profit with increase in operating margins
(YoY)

2. IOC
• Strong performer - high DVM stock (2659.7% returns for Nifty 500 over 8.6 years)
• Growth factor screener has shown rising returns on equity (ROE) and earnings yield
(671.7% returns for Nifty 500 over 5.8 years)
• Strong annual EPS growth
• Increasing revenue every quarter for the past 4 quarters
• Company with zero promoter pledging
• FII / FPI or institutional investors have been increasing their shareholding
• Near its 52 week high
• The stock has had a strong momentum with the price being above short, medium and
long term moving averages

3. SHREECEM
• Stock in PE Buy Zone with reasonable durability score, and rising momentum score
• Growth factor screener shows rising returns on equity (ROE) and earnings yield
(671.7% returns for Nifty 500 over 5.8 years)
• Effectively using its capital to generate profit - RoCE has been improving in last 2
years
• Effectively using shareholders fund - Return on equity (ROE) has been improving
since last 2 years
• Efficient in managing assets to generate profits – ROA has been improving since last
2 years
• Growth in quarterly net profit with increasing profit margin (YoY)
• Company with Low Debt
• Strong cash generating ability from core business - improving cash flow from
operation for last 2 years
• Annual Net Profits has been improving for last 2 years
• Book Value per share has been improving for last 2 years
• Company with zero promoter pledging
• FII / FPI or institutional investors have been increasing their shareholding
• Strong Momentum: Price above short, medium and long term moving averages

4. RELIANCE
• Stock passes majority of CANSLIM Investment criteria (47.3% returns for Nifty 500
over 1.6 years)
• Consistent highest return stocks over 5 years - Nifty500
• Company with high TTM EPS Growth
• Good quarterly growth in the recent results
• Top Indian exporters among listed companies
• Company with low debt
• Book Value per share has been improving for last 2 years
• Company with zero promoter pledging
• FII / FPI or Institutions increasing their shareholding

5. HDFCBANK
• Good aggregate candlestick strength (total bullish - bearish candlesticks) - 416.8%
returns for Nifty 500 over 5 years
• Growth in net profit with increasing profit margin (QoQ)
• Growth in quarterly net profit with increasing profit margin (YoY)
• Strong cash generating ability from core business - improving cash flow from
operation for last 2 years
• Company has been able to generate net cash - improving net cash flow for last 2 years
• Annual net profits have been improving for last 2 years
• Company with zero promoter pledging
• Recent results show aZx growth in operating profit with increase in operating margins
(YoY)
• Companies with rising net profit margins - quarterly as well as TTM basis
• Mutual Funds have been increasing their shareholding