Value Oriented Active Strategy Service

Value Oriented Active Strategy Service

Indian Equity Portfolio Average Net Return of 45%+ in last 7 Months*.

Out-Performed Indian Equity Index Benchmark by 30%.
Performance: Our Value Oriented Indian Equity Portfolio using Active Strategy is up by 45%+ during May 2012 to Dec 2012. We have out-performed the benchmark Index during this period by 30%+.
Overview: In the year 2012, we saw several global and local issues affecting market sentiment negatively. Despite all the gloom and doom reports, markets throughout the globe saw light at the end of tunnel and rallied. Warren Buffett has said, there are 3 things to master to do well in investing field. First one is learn how to value a company, second is to know how the market works and thirdly to have an even temperament through thick and thin. Due to our focus on finding high quality undervalued companies, we stick to our investment tenets and what we can find out more about these companies. Only thing which we may look time to time is the overall market P/E, presently around 17 which is moderate.
Highlights: On May 23rd 2012, we came out with 20 investment ideas and created an equally weighted portfolio. Out of these top 20 companies, some performed very well like PVR, Bannariamman Sugars, Symphony Ltd., Manappuram Finance. One investment idea specifically didn’t performed during the next 3 months was Torrent Power. Overall portfolio was up 20%+ in little over 3 months. On Sep 3rd 2012, we came out with total 16 stocks portfolio where 12 new ideas and 4 old ideas from May 23rd were considered. Portfolio was again equally weighted and till Dec 2012 provided returns around 20%+. PVR, Mangalam Cement, Persistent Systems, JB Chemicals & Pharmaceuticals did excellent. Foseco India didn’t performed to our expectation.
Overall since May 2012, in less than 7 months, portfolio is up 45%+ out-performing the market by 30%.
Outlook for 2013: Downside risk is limited as we move into 2013 with better earnings forecast, more liquidity in the system and improved market sentiments. Irrespective, we don’t worry much about things which are not in our hands, on the contrary there are few things which are in our hands, like to review the companies we invest in on the most stringent valuation criteria, management quality, strength of economic moats to make sure there is not much downside risk, upside is taken care of when the market realizes inherent intrinsic value.
Value Investing is a life long humbling learning process where we try to gain more when we get it right than we lose when we get it wrong.
Happy Investing in 2013!
Century Partners
Disclaimers: This summary is for generic information purpose only and express our views and not an offer to buy or sell. *Past performance is not a guarantee of future results.
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EQUITY RESEARCH REPORT: KOEL

EQUITY RESEARCH REPORT: Kirloskar Oil Engines Limited

NSE: KIRLOSENG; BSE: 533293; ISIN: INE146L01010;
Reuters: KIRO.NS; Bloomberg Ticker: KOEL:IN

Rating: Buy; Originally Recommended on May 23rd 2012 at Quote: Rs. 152

Equity Research Report

Disclaimer: This Report is for information purpose only and express our views about the company, not an offer to buy or sell. Risks involved in investing is not suitable for all kinds of investors. Seek professional advice if this research is suitable for you.

Portfolio Valuation Service

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We provide customized equity Portfolio Valuation Service (PVS) to Institutional Investors, PMS’s, and Brokerage Houses. Under this segment, we provide thorough diagnosis on client’s portfolio with actionable recommendations. We advise big client’s on several of their existing customer’s portfolio with a detailed analysis of present portfolio health and it’s monitoring. As per client’s requirement, we can add value with our expertise and as per the need evaluate the portfolio on a monthly/quarterly basis. Client’s benefit by receiving our expert opinion on their existing portfolio’s, manage risks along with getting new stocks ideas with good return potential. For more information on this, kindly contact us, thanks

Ten Companies

Ten Indian Companies We Like On Value Basis:

 

1. Selan Exploration Technology Ltd. is engaged in exploration and production of Crude Oil and Natural Gas. During Last Quarter they reported a Net profit of Rs. 114.80 millions, CAGR of 48.70%. Revenues and earnings are expected to grow at a CAGR of 20% for the next 3 years. Company is in the process of monetizing of oil and gas assets, have started drilling for the Lohar, Bakrol oilfield. Company’s valuation are cheap relative to its peers and makes it an attractive investment opportunity.

 
2. ITD Cementation India is a part of Italian Thai Development Public Company (ITD), Thailand. ITD has expertise in design and construction of large infrastructure projects and delivers key technical solutions provide solutions in the field of Civil Engineering. ITDCIL focuses on projects involving higher degree of engineering skills and by identifying and forming strategic JV’s for mutual benefit through sharing of resources and business skills. ITDCIL operates in 3 business divisions: 1. Construction of flyovers & bridges, steel & petrochemical plants. 2. Marine division which undertakes the construction of quays which handle cargo at ports. 3. Specialist engineering division which constructs railways and roads, power stations. Company exemplify good earnings growth rate, available at low valuation, expects re-rating of its multiple soon.

 
3. Mangalam Cement is a strong player in the cement sector with a strong foothold in Northern & Central India, is well placed to benefit from growth opportunities in the regions. Capacity expansion plans lined up along with self sufficiency in power coupled with usage of petcoke as fuel will enable it to continue its growth momentum. Company reported good numbers due to increase in volumes and significant improvement in operational parameters. EBIDTA/tn improved by 48.2% QoQ to INR 790/tn mainly on account of higher realisations and lower operating cost. Due to delay in monsoons, MCL witnessed a sharp increase of 45% in volumes to 0.52 mt. Future growth will be driven by expansion in capacity of it’s new clinker and cement plants. Overall a good value and growth opportunity.

 
4. Petronet LNG Ltd. was formed as a joint venture between Oil and Gas PSU’s like HPCL, IOCL, GAIL and ONGC each owning 12.5% equity in the company. Company currently has a regasification and LNG import terminal at Dahej in Gujarat with 10.0 mn tonnes p.a. capacity while the one in Kochi with 5.0mn tonnes p.a. capacity is under construction and will be ready by end of FY2013. PLNG is well-poised to benefit from gas demand-supply mismatch in the country. Company has planned for 75% capacity expansion from 10.0mn tonnes to 17.5mn tonnes over the next three years. PLNG provides an opportunity for investors who wants to benefit from the increasing gap in between India’s natural gas suppy and demand. GOI is making efforts to maintain long-term viability of LNG in the overall gas mix of the country.

 
5. Development Credit Bank came out with good last quarter results, a net profit of Rs. 18.9 crs in Q1FY2013 CAGR 114%. Non Interest Margins improved with a stable outlook for next few years. The bank’s core fee income increased 19% YoY to Rs. 20.2 Cr. Ratio of NII/Total Income stands at 30%. Management expects the momentum in fee income to continue going forward. Loan book shows good growth scenario. This was mainly due to increase in the corporate banking segment & growth in the bank’s mortgage book. Good pipeline for the SME book continues to remain strong. Improving fundamentals will lead to a re-rating of it’s multiple and expect company to reach it’s intrinsic value soon.

 

 

Disclaimer: This is for information purpose only and express our views, not an offer to buy or sell. Risks involved in investing is not suitable for all kinds of investors. Past performance is no guarantee of future performance. Seek professional advice if this research is suitable for you.

Indian Equity Research Advisory

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Indian Equity Research Advisory, Century Partners

We are pleased to inform that we now provide Recommendations for Indian companies.

We thoroughly research and analyze universe of publicly listed companies and come up with great investment ideas/thesis.

We have back tested our value oriented strategy and possess decades of experience in this field both on Wall Street, USA and Dalal Street, India.

Accredited and Institutional Investors are invited to contact us to receive more information about us and our track record.
Contact Us: Century.Partners03@gmail.com

We look forward to help you in ensuring a rewarding long-term investment success.