I have written on couple of different strategies (click here) but there was a lack of conviction in terms of the price to be paid for the stock. Hence, did not include them in the portfolio. They were good stocks, sustainable but maybe not priced properly.
So I just cross-checked the portfolio that I had made first (here) to get an idea how the portfolio is doing.
Scrip
|
Buy
|
Market
|
Quantity
|
Buy
|
Market
|
Gain/Loss
|
Gain/Loss
|
Price
|
Price
|
Value
|
Value
|
(%)
|
|||
Balmer Lawrie
|
297.05
|
446.8
|
16
|
4,753
|
7,149
|
2,396.00
|
50.4
|
Engineers India
|
152.7
|
277.8
|
32
|
4,886
|
8,890
|
4,003.20
|
81.9
|
India Motor Parts
|
420
|
468
|
11
|
4,620
|
5,148
|
528
|
11.4
|
India Nippon
|
175
|
208.95
|
28
|
4,900
|
5,851
|
950.6
|
19.4
|
Infotech Enterp.
|
349.15
|
306.05
|
14
|
4,888
|
4,285
|
-603.4
|
-12.3
|
Kirloskar Industries
|
240
|
364.8
|
20
|
4,800
|
7,296
|
2,496.00
|
52
|
Grand Total
|
28,847
|
38,618
|
9,770.40
|
33.9
|
Therefore, between Feb 14, 2014 and May 30, 2014 while the portfolio gave returns of 33.9%, S&P BSE Sensex has given returns of 19.93%.
Now this is the difficult part, what to do next? There are two options. And I will try and work out both in future blogs.
Option 1: It's a good time to book profit on Engineer's India and book the loss on Infotech Enterprises. This will allow to off-set the profit against the loss and simultaneously open up more options to utilise the capital for better opportunities.
Now this is the difficult part, what to do next? There are two options. And I will try and work out both in future blogs.
Option 1: It's a good time to book profit on Engineer's India and book the loss on Infotech Enterprises. This will allow to off-set the profit against the loss and simultaneously open up more options to utilise the capital for better opportunities.
Option 2: Bring in new capital and invest in debt funds, with higher maturity with a 12 month time horizon. For this dummy portfolio I would prefer to go with additional capital of Rs 20,000.
Meanwhile on the stocks I will only take a call at the end of 11 months. If I am in losses then I will book them at that time and reassess the deployment. In case if there is a profit then the same will be booked after 370 days of holding the stock, this will save on the capital gains tax front.
Meanwhile on the stocks I will only take a call at the end of 11 months. If I am in losses then I will book them at that time and reassess the deployment. In case if there is a profit then the same will be booked after 370 days of holding the stock, this will save on the capital gains tax front.
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