The beginning of September marks the start of a new season for Smart Portfolio. Starting this week, we began Smart Portfolio Season five with six participants. With a sum of Rs 10 lakh, each fund manager is expected to make best of this sum and to beat the benchmark index, S&P CNX 500.
Sachin Shah from Emkay Investment Managers from season 4 is continuing for Season 5.
A K PRABHAKAR
, Senior Vice President ( Equity Research), Anand Rathi Financial Services
Prabhakar started off on a positive note with a 0.4 per cent gain, investing almost Rs 9.83 lakh, while holding Rs 0.21 lakh in cash. His investment style would be to pick stocks that have superior and sustained growth with high return on equity. Some of his prominent investments so far are Tata Coffee, Grasim Industries, Tata Consultancy Services and Speciality Restaurants.
He expects the markets to remain range-bound with stock specific outperformance. Tata Coffee and Grasim Industries, according to him, are stocks nearing all time highs with further upside in the range of 35-50 per cent on both fundamental and technical basis.
| A K PRABHAKAR, Senior Vice President ( Equity Research), Anand Rathi Financial Services | |||
| Top holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Tata Coffee | 988.97 | 962.65 | 0.96 |
| Grasim Industries | 2,916.47 | 2,929.90 | 0.94 |
| Tata Consultancy Services | 1,339.39 | 1,375.60 | 0.82 |
| Speciality Restaurants | 162.10 | 172.80 | 0.52 |
| Aditya Birla Nuvo | 758.89 | 756.40 | 0.49 |
| Total investments | 9.83 | ||
| Cash | 0.21 | ||
| Net worth | 10.04 | ||
KISHOR OSTWAL,
CMD, CNI Research
Ostwal follows a bottom-up approach in mid-and small-cap companies meeting basic valuations matrix. He started off with a 0.2 per cent gain on account of positive returns from his investments in BF Utilities, Century Textiles and Industries and Reliance Industries.
He believes the market is nearing its bottom as all negative events are factored in. However, the only concern is the impending S&P India review where a downgrade is possible. He adds that in case of such a move, we may see a knee-jerk reaction in the negative, leading to a sharp recovery where the Nifty will break above 5,300. Otherwise, it’s going to be a range-bound market, with Nifty between 5,220-5,330. Of his holdings, the one stock he is extremely bullish on is BF Utilities. Over the next few quarters, he sees the stock value improving on account of land bank valuations.
| KISHOR OSTWAL, CMD, CNI Research | |||
| Top holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Reliance Industries | 766.26 | 768.20 | 0.96 |
| Century Textiles & Industries | 317.59 | 319.50 | 0.96 |
| State Bank of India | 1,859.14 | 1,853.95 | 0.93 |
| BF Utilities | 400.30 | 409.40 | 0.82 |
| Total investments | 3.66 | ||
| Cash | 6.36 | ||
| Net worth | 10.02 | ||
NAVEEN FERNANDES,
Fund Manager, Centrum Wealth
With focus on value-based investing, Fernandes looks out for deep value stocks and thematic stock ideas. He also seeks potential takeover candidates and turnaround sectors.
His investments are valued at Rs 7.57 lakh, while he holds Rs 2.42 lakh cash. Losses in ITC and Axis Bank have trimmed his portfolio value by 0.1 per cent to Rs 9.99 lakh.
He expects the markets to be positive in the near term. On the domestic front, there can be a possible hike in fuel price along with foreign direct investment in aviation and retail to counter the increasing stress on macro economy. Also, liquidity from the possible QE3 in the US and bond buying or other action from the European Central Bank will partly find its way into India keeping the equity markets buoyant. Private sector banks is one space he bets on as these banks have been consistently growing both business and profits much faster than industry standard.
| NAVEEN FERNANDES, Fund Manager, Centrum Wealth | |||
| Top holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| BASF India | 633.63 | 645.45 | 10.10 |
| Karur Vysya Bank | 394.99 | 390.10 | 0.99 |
| Lupin | 590.92 | 607.00 | 0.82 |
| Hindustan Zinc | 123.61 | 125.75 | 0.82 |
| Polaris Financial Technology | 121.65 | 121.40 | 0.80 |
| Total investments | 7.57 | ||
| Cash | 2.42 | ||
| Net worth | 9.99 | ||
SHARDUL KULKARNI,
Head - Technical Research, Angel Broking
Kulkarni spots quality companies based on valuations/business model and then applies technical analysis to buy into the stock at the appropriate time. His strategy remains the same for all stock categories.
His portfolio gained 0.8 per cent at Rs 10.08 lakh on the back of profitable investments in Autoline Industries, Shree Renuka Sugars and Hindustan Petroleum Corp. His investments are valued at Rs 5.01 lakh, while he holds Rs 5.07 lakh cash. Expecting a deregulation in the fertiliser space, he has invested in Chambal Fertilisers and Chemicals which is near to its 52-week low.
Going forward, he sees Indian markets to be at the mercy of the global events and data flow. For Nifty, a move beyond 5,360 will set the foundations for a strong upmove towards 5,500. On the sector front, metals and banking look extremely weak, he added.
| SHARDUL KULKARNI, Head - Technical Research, Angel Broking | |||
| Top holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Autoline Industries | 185.66 | 198.90 | 10.44 |
| Shree Renuka Sugars | 30.98 | 31.75 | 10.08 |
| Hindustan Petroleum Corporation | 307.47 | 309.10 | 10.04 |
| Indian Oil Corporation | 248.02 | 247.45 | 0.99 |
| Chambal Fertilisers & Chemicals | 67.62 | 66.70 | 0.97 |
| Total investments | 5.01 | ||
| Cash | 5.07 | ||
| Net worth | 10.08 | ||
SACHIN SHAH,
Fund Manager, Emkay Investment Managers
Shah follows both top-down and bottom-up approaches in large- and mid-cap companies. His portfolio took a 0.7 per cent hit as investments in IDFC, Astrazeneca Pharma India and PTC India slipped 5-8 per cent. His total investments are now worth Rs 5.06 lakh, while he holds Rs 4.87 lakh as cash in hand. Two of his biggest holdings are Exide Industries and IDFC.
According to Shah, markets will remain in narrow trading zone, with slightly negative bias due to negative headlines on political and economic front. Also, there are no positive cues from the global markets. On the stock front, he believes Exide to benefit significantly because of high-margin replacement demand which is expected to pick up in the next few quarters. IDFC is another pick where he bets on high asset quality.
| SACHIN SHAH, Fund Manager, Emkay Investment Managers | |||
| Top holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Exide Industries | 134.68 | 142.50 | 0.64 |
| IDFC | 135.14 | 124.05 | 0.62 |
| ICICI Bank | 910.22 | 896.45 | 0.45 |
| Astrazeneca Pharma India | 1,870.16 | 1,749.75 | 0.44 |
| Zee Entertainment Enterprises | 162.71 | 173.10 | 0.35 |
| Total investments | 5.06 | ||
| Cash | 4.87 | ||
| Net worth | 9.93 | ||
Taher Badshah,
senior vice-president and co-head equities, Motilal Oswal AMC- PMS
Badshah’s strategy is to buy quality and growth stocks with a long-term perspective. He remained inactive during the first week of Season 5. Commenting on the markets, Badshah opines that the markets can see a five-seven per cent upside from the current levels in the near term.
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