INTERNSHIP REPORT

A STUDY ON THE APPLICABILITY OF GRAHAM’S

PORTFOLIO MODEL IN INDIAN EQUITY MARKETS USING
NSE-500 INDEX
Submitted by
ADHITHYA.K.S
Reg No: 32318118
Under the guidance of
Dr. P.S.MANJULA, M.Sc., MBA, Ph.D.,
Assistant Professor

DEPARTMENT OF MANAGEMENT STUDIES

UNIVERSITY OF MADRAS
CHEPAUK
CHENNAI - 600005

Submitted in Partial Fulfilment of the requirement for the Degree of

MASTER OF BUSINESS ADMINISTRATION

July 2019

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 CERTIFICATE

This is to certify that this internship work on “A Study on the analysis of NSE
500 companies using Graham’s portfolio model using the Nifty-500 index” is
done by ADHITHYA.K.S, MBA class of 2018- 2020 under my supervisions for
the partial fulfilment of MBA program and the report is not submitted to any other
Institute/University.

During this internship, he successfully achieved the target assigned to him. I wish
him all the very best in all of his future endeavours.

Faculty guide,
Dr.P.S.Manjula Dr.R.Thenmozhi,
M.Sc.,M.B.A.,Ph.D., M.B.A.,M.Phil.,Ph.D.,
Assistant Professor Professor and Head,
Department of Management Studies Department of Management Studies
University of Madras University of Madras

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 DECLARATION

I, ADHITHYA K S, student of Department of Management Studies of

University of Madras, Chennai hereby declare that this internship titled “A

Study on the analysis of NSE 500 companies using Graham’s portfolio

model using the Nifty-500 index” is my original work submitted as a partial

fulfilment of the requirements for the award of the degree Master of Business

Administration. This summer internship has not been submitted to any other

university or institution for the award of any Degree/Diploma/Certificate.

Date:
Signature
(ADHITHYA K S)
Place: Chennai

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 ACKNOWLEDGEMENT
I convey my deepest and sincere gratitude to Dr. P.S.MANJULA, M.Sc.,
MBA, Ph.D., Assistant Professor, Department of Management studies,
University of Madras for providing me this opportunity and necessary suggestions
and support in completing this project.

I would also to extend my sincere thanks to MR.P.A.RUPA KUMAR

RAJA,Vice President, Go Stocks Advisors Pvt Ltd., for providing this opportunity
and guiding me all through the project.

I am obliged to thank all those who have helped me to finish the project
successfully.

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5
TABLE OF CONTENTS

CHAPTER CONTENTS PAGE NO

NO
1 INTRODUCTION 1

2 OBJECTIVES 2

3 SCOPE OF STUDY 2

4 NSE INDICES 3

4.1 Types of nifty index 4

4.2 Corporate actions and share 7
updates
4.3 Index governance 8
5 ABOUT NATIONAL STOCK
EXCHANGE OF INDIA LIMITED 9
(NSE)
6 GRAHAM’S PORTFOLIO MODEL 10
6.1 Significance of price earnings ratio 11
6.2Significance of debt equity ratio 13
7 DATA COLLECTION 14
7.1 Data analysis 14
7.2 Backtesting 16
7.3 Tools for backtesting 16
7.4 Excel workings 17
7.5 Sector-wise Highest Average 27
return Chart
8 FINDINGS AND CONCLUSION 35
9 BIBLIOGRAPHY 36

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 1. INTRODUCTION
“The big money is not in the buying and selling, but in the
waiting.”
Benjamin Graham’s portfolio model is all about Value Investing. Value
investing is an approach that is widely used today by individual investors and
portfolio managers. In simple words, it is the strategy of investing in
stocks that trade at less than their intrinsic values. In other words, the
goal of value investors is to determine companies that they believe are
undervalued relative to the market or are trading at a discount to their
intrinsic worth. A stock might trade at a discount to its intrinsic value due
to reasons like a dent in the company’s earnings or a one-off event that
may have depressed the stock price. A value investor would look at it as a
long-term investment opportunity. Warren Buffet, the Leader of
Berkshire Hathway built his wealth solely through value investing
principles using Benjamin Graham as his mentor. This is why Benjamin
Graham is known as “The Father of Value Investing.”

The Study has been done in the form of two months internship program
with Gostocks Advisors Pvt. Ltd

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 2. OBJECTIVES

The main objectives of this study are:

 To Understand the concept of Value Investing
 To analyze the application of the Value investing concept in the
Indian Stock market
 Building an equity portfolio using Benjamin Graham’s Model
 To analyze the parameters that determine an equity portfolio model
 To test whether the Value Investing model really beats the Indian
Equity Market
 To Understand the differences between Value Investing and
Growth investing
 To understand the relationship between the parameters used in the
portfolio model
 To understand the limitations of the model suggested by Benjamin
Graham

3. SCOPE OF STUDY
The Benefit of the study is that it gave a meticulous knowledge on the
application of Value Investing portfolio models in the Indian stock markets.
The study focused on analysing the Nifty 500 companies and selection of the
qualifying stocks from the Nifty 500 universe for building the portfolio as per
the Benjamin Graham Model and backtesting it over an 8 year period to
conclude whether the strategy really beats the market performance with respect
to the NIFTY 500 index.

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 4. NSE INDICES

The National Stock Exchange’s index is known as NIFTY. NIFTY Index is

regarded as the proper benchmark for Indian capital markets. The numbers
related to this index is given by NSE Indices Limited (an NSE group of
company). NSE Indices Limited is India's specialised company focused upon
the index as a core product. NSE Indices Limited maintains equity indices
comprising broad-based benchmark indices, sectoral indices, strategy indices,
thematic indices, fixed income and customised indices. Many investment and
risk management products are developed on NSE Indices Limited indices in
India and abroad. The 'NIFTY 50' index is widely tracked and traded as the
benchmark for Indian Capital Markets.
NSE Indices Limited’s objective is to develop, construct and maintain indices
on Indian equities that serve as useful market performance benchmarks and can
be useful underlying indices for investment products. The index structure
efficiently represents large, mid and small market capitalisation segments of the
Indian capital market.

Under this structure, there are 13 broad market indices as shown below:

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 4.1 TYPES OF NIFTY INDEX

1. NIFTY 500:
NIFTY 500 represents the top 500 companies based on full market
capitalisation from the eligible universe.

2. NIFTY 100:

NIFTY 100 represents top 100 companies based on full market

capitalisation from NIFTY 500. This index intends to measure the
performance of large market capitalisation companies.

3. NIFTY Midcap 150:

NIFTY Midcap 150 represents the next 150 companies (companies

ranked 101-250) based on full market capitalisation from NIFTY 500.
This index intends to measure the performance of mid market
capitalisation companies.

4. NIFTY Smallcap 250:

NIFTY Smallcap 250 represents the balance 250 companies

(companies ranked 251-500) from NIFTY 500. This index intends to
measure the performance of small market capitalisation companies.

5. NIFTY 50:

The index represents 50 companies selected from the universe of

NIFTY 100 based on free-float market capitalisation and liquid
companies having average impact cost of 0.50% or less for 90% of
the observations for a basket size of Rs. 10 Crores. The constituents
should have derivative contracts available on NSE.

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6. NIFTY Next 50:

It represents the balance 50 companies from NIFTY 100 after

excluding the NIFTY 50 companies.

7. NIFTY Midcap 50:

It includes top 50 companies based on full market capitalisation from

NIFTY Midcap 150 index and on which derivative contracts are
available on NSE. In case 50 midcap stocks do not have derivatives
contract available on them then it could have less than 50 stocks in the
index.

8. NIFTY Midcap 100 (formerly NIFTY Free float Midcap 100):

It includes all companies from NIFTY Midcap 50. Remaining

companies are selected based on average daily turnover from NIFTY
Midcap 150 index.

9. NIFTY Smallcap 50:

It represents top 50 companies selected based on average daily

turnover from top 100 companies selected based on full market
capitalisation in NIFTY Smallcap 250 index.

10. NIFTY Smallcap 100 (formerly NIFTY Free float Smallcap

100):

It includes all companies from NIFTY Smallcap 50. Remaining

companies are selected based on average daily turnover from top 150
companies selected based on full market capitalisation from NIFTY
Smallcap 250 index.

11. NIFTY 200:

NIFTY 200 includes all companies forming part of NIFTY 100 and
NIFTY Midcap 100 index.
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12. NIFTY LargeMidcap 250

It includes all companies from NIFTY 100 and NIFTY Midcap 150. It
intends to measure performance of the large and mid-market
capitalisation companies.

13. NIFTY MidSmallcap 400:

It includes all companies from NIFTY Midcap 150 and NIFTY

Smallcap 250. It intends to measure performance of the mid and small
market capitalisation companies.

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 4.2 CORPORATE ACTIONS AND SHARE UPDATES

Maintenance of NIFTY indices includes carrying out adjustments for corporate

actions like stock splits, stock dividends, share changes and scheme of
arrangements. Some corporate actions, such as stock splits and stock dividends,
require simple changes in the equity shares outstanding and the stock prices of
the companies in the index.
Other corporate actions, such as share issuances, change the market value of an
index and require a divisor adjustment to prevent the value of the index from
changing.
This helps in keeping the value of the index accurate and ensures that the
movement of the index does not get impacted due to corporate actions of the
companies in it. Divisor adjustments are made after the close of trading and
after the calculation of the closing value of the index. Corporate actions such as
splits, stock dividends, spin-offs, rights offerings, and share changes are applied
on the ex-date.
All singular instances of share changes arising out of additional issue of capital,
such as ESOPs, QIPs, ADR/GDR issues, private placements, warrant
conversions, and FCCB conversions, which have an impact of 5% or more on
the issued share capital of the security, are implemented after providing a five
working days’ prior notice. Share buyback also have the same rules as
applicable to share changes.

Changes entailing less than 5% impact on the issued share capital or a free-float
are accumulated and implemented from the first working day after F&O expiry
of March, June, September and December after providing five working days’
prior notice.

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 Formatted: Centered
4.3 INDEX GOVERNANCE

A professional team at NSE Indices Limited manages the index. NSE Indices
Limited has constituted the Index Advisory Committee (Equity), which
provides guidance on macro issues pertaining to equity indices. The Index
Maintenance Sub-committee makes all decisions on additions and deletions of
companies in equity indices and Index Advisory Committee (Debt) provides
guidance on macro issues pertaining to fixed income indices. The Committees
comprises of representatives from financial market such as Asset Management
Company, insurance company, rating agency etc. In order to maintain
transparency, the names of the committee member are publicly displayed on the
website. None of the member in the above committee except the exchange
representative(s) (who co-ordinates between the Index Advisory Committee -
Equity and IMSC) represent more than one committee and thereby the
independence of each of the committees is maintained.

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 5. ABOUT NATIONAL STOCK EXCHANGE OF INDIA
LIMITED (NSE)

The National Stock Exchange of India Ltd. (NSE) is the leading stock exchange
in India and the third largest in the world by nos. of trades in equity shares in
2017, according to World Federation of Exchanges (WFE) report. NSE was the
first exchange in India to implement electronic or screen based trading. It began
operations in 1994 and is ranked as the largest stock exchange in India in terms
of total and average daily turnover for equity shares every year since 1995,
based on SEBI data. NSE has a fully-integrated business model comprising
exchange listings, trading services, clearing and settlement services, indices,
market data feeds, technology solutions and financial education offerings. NSE
also oversees compliance by trading and clearing members with the rules and
regulations of the exchange. NSE is a pioneer in technology and ensures the
reliability and performance of its systems through a culture of innovation and
investment in technology. NSE believes that the scale and breadth of its
products and services, sustained leadership positions across multiple asset
classes in India and globally enable it to be highly reactive to market demands
and changes and deliver innovation in both trading and non-trading businesses
to provide high quality data and services to market participants and clients.

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 6. GRAHAM’S PORTFOLIO MODEL
Value Investing focuses on the fundamental numbers on the financial
statements, Benjamin Graham suggested two parameters for stock selection.
Namely,
1. Price to Earnings ratio
2. Debt Equity ratio
He recommended that an investor create a portfolio of a minimum of 30 stocks
Meeting,

1. Specific price-to-earnings criteria (below 10) and,

2. Specific debt-to-equity criteria (below 50 percent) to give
“The best odds statistically.”

And then hold those stocks until they had returned 50 percent, or, if a stock
hadn't met that return objective by the “end of the second calendar year from the
time of Purchase, sell it regardless of price.”

Graham said that his research suggested that this formula returned
approximately 15 percent per year over the preceding 50 years. He cautioned,
however, that an investor should not expect 15 percent every year. The
minimum period of time to determine the likely performance of the strategy was
five years.

For avoiding bias in selection the stock selection has been uniformly from all
the available sectors in the eligible universe

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 6.1. SIGNIFICANCE OF PRICE EARNINGS RATIO

Price Earnings ratio is the expression of the Money value that the investor is
willing to pay for one unit of earning of the company.

A Higher PE ratio will infer that the Investor has higher expectations on the
earnings of the company over the future possibly resulting in overvaluation.

Conversely, a low P/E might indicate that the current stock price is low relative
to earnings. Companies with Abnormally higher PE ratio but relatively less
earnings would command such high PE ratio due to the Expectations from the
investors in the market and Vice Versa.

A Lower PE would indicate that the share of the company is undervalued in the
sense that the company is performing exceptionally by having the EPS very
nearer to the Market price of its shares.
Mathematically when the numerator and denominator are closer values the
resulting multiple will be a smaller number.

Moreover, leverage can skew P/E ratios as well. For example, suppose there are
two similar companies that differ primarily in the amount of debt they take on.

The one with more debt will likely have a lower P/E value than the one with
less debt. However, if business is good, the one with more debt stands to see
higher earnings because of the risks it has taken.

P/E ratio is highly dependent on capital structure. Leverage (i.e. debt taken on
by the company) affects both earnings and share price in a variety of ways,
including the leveraging of earnings growth rates, tax effects and impacts on the
risk of bankruptcy, and can sometimes dramatically affect the company’s
results. Thus, lower the leverage, higher the P/E ratio.

As a result, high capital intensive industry gets lower P/E than low capital
intensive industry.

PE ratio is chosen as one of the parameters to for selection in order to pull out
the undervalued stocks which would potentially give a long run growth in the
investment.

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FORMULA:

Market Price / Earnings Per share

ADVANTAGES OF PRICE EARNINGS RATIO

1. PE Ratio is an effective valuation tool for the investors in assessing the
potential value of a stock.
2. It assists them to figure out whether a company is overvalued or
undervalued and the possibility of growth in the forthcoming period.
3. It helps the investors to classify the Value stocks and growth stocks and
thus helping them to invest in short term and long term stocks
accordingly

LIMITATIONS OF PE RATIO
1. In the times of high inflation, PE ratio will be lower, which makes
valuation difficult.
2. The financial statements of the companies are subject to manipulation. As
PE ratio is a valuation from the fundamental numbers, there are always
higher chances of it giving a false signal when the company has
manipulated its financials.

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 6.2. SIGNIFICANCE OF DEBT-EQUITY RATIO

Debt-equity ratio measure of a company's ability to repay its obligations. When

examining the health of a company, it is critical to pay attention to the
debt/equity ratio. If the ratio is increasing, the company is being financed by
creditors rather than from its own financial sources which may be a dangerous
trend. Lenders and investors usually prefer low debt-to-equity ratios because
their interests are better protected in the event of a business decline.
Thus Investors prefer companies with lower Debt-Equity ratios as the owner
can enjoy higher returns on equity because the total returns are divided into very
few hands but it is only possible when the rate of return from the business is
higher than the rate of interest charged by the debts. This is called “Leverage”
or “Trading on Equity”.

ADVANTAGES OF DEBT EQUITY RATIO

1. Debt is a significant portion in the capital structure of any company. The
DEBT Equity ratio is advantageous when its lower, because the company
makes a good use of the leverage and it doesn’t spend much of its
earnings in interest payments.
2. A lower Debt equity ratio ensures that the company is focusing on
shareholder’s wealth.

LIMITATIONS OF DEBT EQUITY RATIO

1. A Higher Debt-Equity ratio will negatively impact the wealth of the
shareholders as more amounts of the earnings are used to finance the
interest payment for the non-current liabilities.
2. It always indicates a higher volatility as the company is aggressively
financing its requirements through debt.

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 7. DATA COLLECTION

The Data required for the study was in the form of secondary data which was
collected from software called “Ace Equity”
The data comprised of the Price Earnings ratio, Debt Equity ratio, Market
capitalization of the nifty 500 companies for the time period starting from
March 2009 to March 2018.

7.1 DATA ANALYSIS

The data collected were filtered using the two parameters using Microsoft
Excel.
The data selection was in such a way that it ensured companies were selected
from all the eligible sectors. Financial services were specifically excluded due
to huge debt equity ratio
The Portfolio was created with maximum of 30 qualified stocks and data was
backtested right from 2009 to 2011 two year period followed by seven two year
periods ending with 2016 to 2018.
The Benchmark was the Nifty500 Index’s performance for every two year
period and the portfolio return was compared with the same to test the reliability
of the model.
The following measures were tested on the portfolio in every two year period:
 Standard Deviation of the portfolio
 Compounded Annual Growth Rate
 Return on Investment
 Information Ratio

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1.STANDARD DEVIATION OF THE PORTFOLIO
Standard deviation of portfolio return measures the variability of the expected
rate of return of a portfolio.

2.COMPOUNDED ANNUAL GROWTH RATE

Compound annual growth rate (CAGR) is the rate of return that would be
required for an investment to grow from its beginning balance to its ending
balance, assuming the profits were reinvested at the end of each year of the
investment’s lifespan.

CAGR = (Ending Value of Investment)^(1/Holding period) - 1

Beginning Value of Investment

3.RETURN ON INVESTMENT
Return on Investment is the rate of return that was generated by the portfolio
out of the investment made in the beginning of the two year period.

ROI = Returns / Initial Investment

4.INFORMATION RATIO
The information ratio measures the risk-adjusted returns of a financial asset
or portfolio relative to a certain benchmark. This ratio aims to show excess
returns relative to the benchmark, as well as the consistency in generating the
excess returns. The consistency of generating excess returns is measured by
the tracking error. The Benchmark used here is the NIFTY500 index.

 Ri– the return of a security or portfolio

 Rb – the return of a benchmark
 E( Ri – Rb) – the expected excess return of a security or portfolio over
benchmark
 δib – the standard deviation of a security or portfolio returns from the
returns of a benchmark (tracking error)

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 7.2 BACKTESTING
Backtesting is a key component of effective trading-system development. It is
accomplished by reconstructing, with historical data, trades that would have
occurred in the past using rules defined by a given strategy. The result offers
statistics to gauge the effectiveness of the strategy.

The underlying theory is that any strategy that worked well in the past is likely
to work well in the future, and conversely, any strategy that performed poorly in
the past is likely to perform poorly in the future.

A well-conducted backtest that yields positive results assures traders that the
strategy is fundamentally sound and is likely to yield profits when implemented
in reality. A well-conducted backtest that yields suboptimal results will prompt
traders to alter or reject the strategy. Particularly complicated trading strategies,
such as strategies implemented by automated trading systems, rely heavily on
backtesting to prove their worth, as they are too arcane to evaluate otherwise.

7.3 TOOLS FOR BACKTESTING

Backtesting can provide plenty of valuable statistical feedback about a given
system. Some universal backtesting statistics include:

 Net profit or loss - Net percentage gained or lost

 Volatility measures - Maximum percentage upside and downside
 Averages - Percentage average gain and average loss, average bars held
 Exposure - Percentage of capital invested (or exposed to the market)
 Ratios - Wins-to-losses ratio
 Annualized return - Percentage return over a year
 Risk-adjusted return - Percentage return as a function of risk

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 7.4EXCEL WORKINGS
PORTFOLIO OF THE PERIOD APRIL 2009 to MARCH 2011
Market Price No. of
S.NO Company Name Sector 2009 2011 Shares Investment Realised Profits Weights CAGR% Returns%
1 Oil & Natural Gas Corporation Ltd. ENERGY 114.13 194.20 325 ₹ 37,093.33 ₹ 63,115.00 ₹ 26,021.67 0.04 30.44% 70.15%
2 Steel Authority Of India Ltd. METALS 82.85 169.60 447 ₹ 37,033.95 ₹ 75,811.20 ₹ 38,777.25 0.04 43.08% 104.71%
3 Wipro Ltd. IT 55.83 180.08 663 ₹ 37,017.78 ₹ 1,19,389.73 ₹ 82,371.95 0.04 79.59% 222.52%
4 Hindustan Zinc Ltd. METALS 35.95 137.80 1,030 ₹ 37,028.50 ₹ 1,41,934.00 ₹ 1,04,905.50 0.04 95.78% 283.31%
5 Mangalore Refinery & Petrochemicals Ltd. ENERGY 42.45 64.50 872 ₹ 37,016.40 ₹ 56,244.00 ₹ 19,227.60 0.04 23.27% 51.94%
6 Bharat Electronics Ltd. INDUSTRIAL MANUFACTURING 23.46 51.01 1,579 ₹ 37,046.69 ₹ 80,543.35 ₹ 43,496.67 0.04 47.45% 117.41%
7 Oracle Financial Services Software Ltd. IT 466.10 1986.70 79 ₹ 36,821.90 ₹ 1,56,949.30 ₹ 1,20,127.40 0.04 106.46% 326.24%
8 CG Power & Industrial Solutions Ltd. INDUSTRIAL MANUFACTURING 81.66 272.75 454 ₹ 37,072.34 ₹ 1,23,828.50 ₹ 86,756.16 0.04 82.76% 234.02%
9 Cummins India Ltd. INDUSTRIAL MANUFACTURING 159.93 498.50 232 ₹ 37,103.43 ₹ 1,15,652.00 ₹ 78,548.57 0.04 76.55% 211.70%
10 Shipping Corporation Of India Ltd. SERVICES 83.95 107.45 441 ₹ 37,021.95 ₹ 47,385.45 ₹ 10,363.50 0.04 13.13% 27.99%
11 Tech Mahindra Ltd. IT 65.31 169.04 567 ₹ 37,032.19 ₹ 95,844.26 ₹ 58,812.08 0.04 60.88% 158.81%
12 Engineers India Ltd. CONSTRUCTION 41.04 152.35 903 ₹ 37,056.86 ₹ 1,37,572.05 ₹ 1,00,515.19 0.04 92.68% 271.25%
13 Thermax Ltd. INDUSTRIAL MANUFACTURING 184.75 602.90 201 ₹ 37,134.75 ₹ 1,21,182.90 ₹ 84,048.15 0.04 80.65% 226.33%
14 Akzo Nobel India Ltd. CONSUMER GOODS 415.51 732.17 89 ₹ 36,980.39 ₹ 65,163.13 ₹ 28,182.74 0.04 32.74% 76.21%
15 Voltas Ltd. CONSUMER GOODS 61.15 182.65 606 ₹ 37,056.90 ₹ 1,10,685.90 ₹ 73,629.00 0.04 72.83% 198.69%
16 Pfizer Ltd. PHARMA 508.35 1243.90 73 ₹ 37,109.55 ₹ 90,804.70 ₹ 53,695.15 0.04 56.43% 144.69%
17 Blue Star Ltd. CONSUMER GOODS 153.40 371.45 241 ₹ 36,969.40 ₹ 89,519.45 ₹ 52,550.05 0.04 55.61% 142.14%
18 Birla Corporation Ltd. CEMENT & CEMENT PRODUCTS 127.05 338.70 292 ₹ 37,098.60 ₹ 98,900.40 ₹ 61,801.80 0.04 63.28% 166.59%
19 Sun Pharma Advanced Research Company Ltd. PHARMA 42.60 70.40 869 ₹ 37,018.79 ₹ 61,174.40 ₹ 24,155.61 0.04 28.55% 65.25%
20 Gujarat Narmada Valley Fertilizers & Chemicals Ltd. CHEMICALS 56.85 95.50 651 ₹ 37,009.35 ₹ 62,170.50 ₹ 25,161.15 0.04 29.61% 67.99%
21 Gujarat State Fertilizers & Chemicals Ltd. FERTILISERS & PESTICIDES 15.32 68.36 2,418 ₹ 37,043.76 ₹ 1,65,294.48 ₹ 1,28,250.72 0.04 111.24% 346.21%
22 Prism Johnson Ltd. CEMENT & CEMENT PRODUCTS 19.40 52.65 1,909 ₹ 37,034.60 ₹ 1,00,508.85 ₹ 63,474.25 0.04 64.74% 171.39%
23 Gateway Distriparks Ltd. SERVICES 88.20 120.80 420 ₹ 37,044.00 ₹ 50,736.00 ₹ 13,692.00 0.04 17.03% 36.96%
24 Cyient Ltd. IT 51.03 161.75 726 ₹ 37,044.15 ₹ 1,17,430.50 ₹ 80,386.35 0.04 78.05% 217.00%
25 Rallis India Ltd. FERTILISERS & PESTICIDES 22.26 131.13 1,664 ₹ 37,046.19 ₹ 2,18,192.00 ₹ 1,81,145.81 0.04 142.69% 488.97%
26 Gujarat Alkalies & Chemicals Ltd. CHEMICALS 72.60 127.55 510 ₹ 37,026.00 ₹ 65,050.50 ₹ 28,024.50 0.04 32.55% 75.69%
27 Kolte Patil Developers Ltd. CONSTRUCTION 31.90 43.40 1,161 ₹ 37,035.90 ₹ 50,387.40 ₹ 13,351.50 0.04 16.64% 36.05%
TOTAL ₹ 9,99,997.65 ₹ 26,81,469.95 ₹ 16,81,472.30 1.00 63.75% 168.15%

Amount Invested ₹ 10,00,000.00 Nifty 500 Index Absolute CAGR 63.75%

Balance ₹ 2.35 April, 2009 2282.1 Absolute Return 168.15%
March, 2011 4606.9 SD of the portfolio 111.35%
Market Return 101.87%
Excess Return 66.28%

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 PORTFOLIO OF THE PERIOD APRIL 2010 to MARCH 2012

Market Price No. of

S.NO Company Name Sector Apr, 2010 Mar, 2012 Shares Investment Realised Profits Weights CAGR% Return%
1 Grasim Industries Ltd. CEMENT & CEMENT PRODUCTS ₹ 565.70 ₹ 525.41 70 ₹ 39,599.00 ₹ 36,778.70 ₹ -2,820.30 0.04 -3.63% -7.12%
2 Jindal Saw Ltd. METALS ₹ 219.75 ₹ 174.45 198 ₹ 43,510.50 ₹ 34,541.10 ₹ -8,969.40 0.04 -10.90% -20.61%
3 Birla Corporation Ltd. CEMENT & CEMENT PRODUCTS ₹ 396.55 ₹ 284.85 110 ₹ 43,620.50 ₹ 31,333.50 ₹ -12,287.00 0.04 -15.25% -28.17%
4 Maharashtra Seamless Ltd. METALS ₹ 355.05 ₹ 390.20 123 ₹ 43,671.15 ₹ 47,994.60 ₹ 4,323.45 0.04 4.83% 9.90%
5 MRF Ltd. AUTOMOBILE ₹ 6,899.50 ₹ 9,932.65 6 ₹ 41,397.00 ₹ 59,595.90 ₹ 18,198.90 0.04 19.98% 43.96%
6 Sun Pharma Advanced Research Company PHARMA ₹ 98.63 ₹ 72.94 442 ₹ 43,595.79 ₹ 32,238.00 ₹ -11,357.79 0.04 -14.01% -26.05%
7 Gujarat Fluorochemicals Ltd. CHEMICALS ₹ 144.25 ₹ 511.30 302 ₹ 43,563.50 ₹ 1,54,412.60 ₹ 1,10,849.10 0.04 88.27% 254.45%
8 Graphite India Ltd. INDUSTRIAL MANUFACTURING ₹ 90.80 ₹ 83.80 480 ₹ 43,584.00 ₹ 40,224.00 ₹ -3,360.00 0.04 -3.93% -7.71%
9 Amara Raja Batteries Ltd. AUTOMOBILE ₹ 84.43 ₹ 146.53 516 ₹ 43,563.30 ₹ 75,606.90 ₹ 32,043.60 0.04 31.74% 73.56%
10 Heidelberg Cement India Ltd. CEMENT & CEMENT PRODUCTS ₹ 62.90 ₹ 38.70 692 ₹ 43,526.80 ₹ 26,780.40 ₹ -16,746.40 0.04 -21.56% -38.47%
11 NIIT Technologies Ltd. IT ₹ 171.85 ₹ 272.60 254 ₹ 43,649.90 ₹ 69,240.40 ₹ 25,590.50 0.04 25.95% 58.63%
12 Gujarat Alkalies & Chemicals Ltd. CHEMICALS ₹ 125.90 ₹ 121.45 346 ₹ 43,561.40 ₹ 42,021.70 ₹ -1,539.70 0.04 -1.78% -3.53%
13 Eicher Motors Ltd. AUTOMOBILE ₹ 660.70 ₹ 1,993.35 66 ₹ 43,606.20 ₹ 1,31,561.10 ₹ 87,954.90 0.04 73.70% 201.70%
14 JB Chemicals & Pharmaceuticals Ltd. PHARMA ₹ 74.80 ₹ 61.00 582 ₹ 43,533.60 ₹ 35,502.00 ₹ -8,031.60 0.04 -9.69% -18.45%
15 Sonata Software Ltd. IT ₹ 59.05 ₹ 18.10 737 ₹ 43,519.85 ₹ 13,339.70 ₹ -30,180.15 0.04 -44.64% -69.35%
16 Zensar Technologies Ltd. IT ₹ 27.38 ₹ 35.99 1592 ₹ 43,588.96 ₹ 57,296.08 ₹ 13,707.12 0.04 14.65% 31.45%
17 KNR Construction Ltd. CONSTRUCTION ₹ 31.26 ₹ 24.43 1393 ₹ 43,545.18 ₹ 34,030.99 ₹ -9,514.19 0.04 -11.60% -21.85%
18 Natco Pharma Ltd. PHARMA ₹ 27.37 ₹ 70.78 1595 ₹ 43,655.15 ₹ 1,12,894.10 ₹ 69,238.95 0.04 60.81% 158.60%
19 VenkyS (India) Ltd. CONSUMER GOODS ₹ 235.70 ₹ 258.80 185 ₹ 43,604.50 ₹ 47,878.00 ₹ 4,273.50 0.04 4.79% 9.80%
20 IFB Industries Ltd. CONSUMER GOODS ₹ 90.90 ₹ 79.35 479 ₹ 43,541.10 ₹ 38,008.65 ₹ -5,532.45 0.04 -6.57% -12.71%
21 Navin Fluorine International Ltd. CHEMICALS ₹ 64.45 ₹ 70.88 676 ₹ 43,568.20 ₹ 47,914.88 ₹ 4,346.68 0.04 4.87% 9.98%
22 Astral Poly Technik Ltd. INDUSTRIAL MANUFACTURING ₹ 19.51 ₹ 38.90 2232 ₹ 43,546.32 ₹ 86,824.80 ₹ 43,278.48 0.04 41.20% 99.38%
23 Cera Sanitaryware Ltd. CONSTRUCTION ₹ 124.25 ₹ 232.00 350 ₹ 43,487.50 ₹ 81,200.00 ₹ 37,712.50 0.04 36.65% 86.72%
₹ 9,96,039.40 ₹ 13,37,218.10 3,41,178.70 1.00 15.87% 34.25%

Amount Invested ₹ 10,00,000.00 NSE 500 Index Absolute CAGR 15.87%

Balance ₹ 3,960.60 April, 2010 4337.2 Absolute Return 34.25%
March, 2012 4139.65 SD of the portfolio 80.51%
Market Return -4.55%
Excess Return 38.81%

18
 PORTFOLIO OF THE PERIOD APRIL 2011 to MARCH 2013

S.NO Company Name Sector Market Price No of

Apr, 2011 Mar, 2013 Shares Investment Realised Profit Weights CAGR% Returns%
1 Vedanta Ltd. METALS ₹ 298.30 ₹ 155.50 146 ₹ 43,551.80 ₹ 22,703.00 ₹ -20,848.80 0.04 -27.80% -47.87%
2 Grasim Industries Ltd. CEMENT & CEMENT PRODUCTS ₹ 506.18 ₹ 562.66 86 ₹ 43,531.48 ₹ 48,388.76 ₹ 4,857.28 0.04 5.43% 11.16%
3 Mangalore Refinery & Petrochemicals Ltd. ENERGY ₹ 65.65 ₹ 49.55 663 ₹ 43,525.95 ₹ 32,851.65 ₹ -10,674.30 0.04 -13.12% -24.52%
4 Mphasis Ltd. IT ₹ 420.15 ₹ 391.60 103 ₹ 43,275.45 ₹ 40,334.80 ₹ -2,940.65 0.04 -3.46% -6.80%
5 Piramal Enterprises Ltd. PHARMA ₹ 416.51 ₹ 607.74 104 ₹ 43,316.91 ₹ 63,204.75 ₹ 19,887.84 0.04 20.79% 45.91%
6 Birla Corporation Ltd. CEMENT & CEMENT PRODUCTS ₹ 342.90 ₹ 244.50 127 ₹ 43,548.30 ₹ 31,051.50 ₹ -12,496.80 0.04 -15.56% -28.70%
7 Maharashtra Seamless Ltd. METALS ₹ 333.10 ₹ 221.95 131 ₹ 43,636.10 ₹ 29,075.45 ₹ -14,560.65 0.04 -18.37% -33.37%
8 Hexaware Technologies Ltd. IT ₹ 68.80 ₹ 84.55 632 ₹ 43,481.60 ₹ 53,435.60 ₹ 9,954.00 0.04 10.86% 22.89%
9 Mindtree Ltd. IT ₹ 101.45 ₹ 228.64 429 ₹ 43,522.05 ₹ 98,085.49 ₹ 54,563.44 0.04 50.12% 125.37%
10 Nava Bharat Ventures Ltd. ENERGY ₹ 131.03 ₹ 83.70 332 ₹ 43,500.30 ₹ 27,788.40 ₹ -15,711.90 0.04 -20.07% -36.12%
11 Graphite India Ltd. INDUSTRIAL MANUFACTURING ₹ 94.30 ₹ 79.10 461 ₹ 43,472.30 ₹ 36,465.10 ₹ -7,007.20 0.04 -8.41% -16.12%
12 Schaeffler India Ltd. INDUSTRIAL MANUFACTURING ₹ 836.50 ₹ 1,470.10 52 ₹ 43,498.00 ₹ 76,445.20 ₹ 32,947.20 0.04 32.57% 75.74%
13 Gujarat Narmada Valley Fertilizers & Chemicals Ltd. CHEMICALS ₹ 97.80 ₹ 75.75 445 ₹ 43,521.00 ₹ 33,708.75 ₹ -9,812.25 0.04 -11.99% -22.55%
14 JB Chemicals & Pharmaceuticals Ltd. PHARMA ₹ 135.00 ₹ 74.15 322 ₹ 43,470.00 ₹ 23,876.30 ₹ -19,593.70 0.04 -25.89% -45.07%
15 Gujarat Alkalies & Chemicals Ltd. CHEMICALS ₹ 127.85 ₹ 215.40 340 ₹ 43,469.00 ₹ 73,236.00 ₹ 29,767.00 0.04 29.80% 68.48%
16 Finolex Cables Ltd. INDUSTRIAL MANUFACTURING ₹ 47.65 ₹ 45.60 913 ₹ 43,504.45 ₹ 41,632.80 ₹ -1,871.65 0.04 -2.17% -4.30%
17 VenkyS (India) Ltd. CONSUMER GOODS ₹ 437.17 ₹ 334.43 99 ₹ 43,279.50 ₹ 33,108.90 ₹ -10,170.60 0.04 -12.54% -23.50%
18 IFB Industries Ltd. CONSUMER GOODS ₹ 141.35 ₹ 80.80 308 ₹ 43,535.80 ₹ 24,886.40 ₹ -18,649.40 0.04 -24.39% -42.84%
19 Kolte Patil Developers Ltd. CONSTRUCTION ₹ 44.90 ₹ 88.95 968 ₹ 43,463.20 ₹ 86,103.60 ₹ 42,640.40 0.04 40.75% 98.11%
20 KNR Construction Ltd. CONSTRUCTION ₹ 23.81 ₹ 17.60 1826 ₹ 43,477.06 ₹ 32,137.60 ₹ -11,339.46 0.04 -14.02% -26.08%
21 Navin Fluorine International Ltd. CHEMICALS ₹ 50.77 ₹ 42.39 857 ₹ 43,509.89 ₹ 36,328.23 ₹ -7,181.66 0.04 -8.62% -16.51%
22 Bliss GVS Pharma Ltd. PHARMA ₹ 23.90 ₹ 26.55 1819 ₹ 43,474.10 ₹ 48,294.45 ₹ 4,820.35 0.04 5.40% 11.09%
23 Cera Sanitaryware Ltd. CONSTRUCTION ₹ 162.05 ₹ 443.60 268 ₹ 43,429.40 ₹ 1,18,884.80 ₹ 75,455.40 0.04 65.45% 173.74%
₹ 9,99,993.64 ₹ 11,12,027.53 ₹ 1,12,033.88 1.00 5.45% 11.22%

Amount Invested ₹ 10,00,000.00 NSE 500 Index Absolute CAGR 5.45%

Balance ₹ 6.36 April, 2011 4627.15 Absolute Return 11.20%
March, 2013 4397.85 SD of the portfolio 59.65%
Market Return -4.96%
Excess Return 16.18%

19
 PORTFOLIO OF THE PERIOD APRIL 2012 to MARCH 2014

Market Price
S.NO Company Name Sector Apr, 2012 Mar, 2014 No. of Shares Investment Realised Profit Weights CAGR % Returns%
1 Oil & Natural Gas Corporation Ltd. ENERGY ₹ 179.90 ₹ 212.47 232 ₹ 41,736.80 ₹ 49,292.27 ₹ 7,555.47 0.04 8.68% 18.10%
2 NMDC Ltd. METALS ₹ 165.00 ₹ 139.25 252 ₹ 41,580.00 ₹ 35,091.00 ₹ -6,489.00 0.04 -8.13% -15.61%
3 Bharat Heavy Electricals Ltd. INDUSTRIAL MANUFACTURING ₹ 173.87 ₹ 130.70 240 ₹ 41,728.00 ₹ 31,368.00 ₹ -10,360.00 0.04 -13.30% -24.83%
4 Grasim Industries Ltd. CEMENT & CEMENT PRODUCTS ₹ 523.90 ₹ 577.61 80 ₹ 41,912.00 ₹ 46,208.80 ₹ 4,296.80 0.04 5.00% 10.25%
5 Vedanta Ltd. METALS ₹ 192.65 ₹ 188.55 216 ₹ 41,612.40 ₹ 40,726.80 ₹ -885.60 0.04 -1.07% -2.13%
6 Oil India Ltd. ENERGY ₹ 246.53 ₹ 242.03 169 ₹ 41,662.73 ₹ 40,902.23 ₹ -760.50 0.04 -0.92% -1.83%
7 Tech Mahindra Ltd. IT ₹ 179.14 ₹ 448.84 233 ₹ 41,739.04 ₹ 1,04,579.14 ₹ 62,840.10 0.04 58.29% 150.55%
8 Maharashtra Seamless Ltd. METALS ₹ 390.00 ₹ 193.15 107 ₹ 41,730.00 ₹ 20,667.05 ₹ -21,062.95 0.04 -29.63% -50.47%
9 Trent Ltd. CONSUMER GOODS ₹ 94.65 ₹ 102.83 440 ₹ 41,643.80 ₹ 45,243.00 ₹ 3,599.20 0.04 4.23% 8.64%
10 Hexaware Technologies Ltd. IT ₹ 116.95 ₹ 150.50 356 ₹ 41,634.20 ₹ 53,578.00 ₹ 11,943.80 0.04 13.44% 28.69%
11 Graphite India Ltd. INDUSTRIAL MANUFACTURING ₹ 85.40 ₹ 89.05 488 ₹ 41,675.20 ₹ 43,456.40 ₹ 1,781.20 0.04 2.11% 4.27%
12 Future Consumer Ltd. CONSUMER GOODS ₹ 8.45 ₹ 4.70 4927 ₹ 41,633.15 ₹ 23,156.90 ₹ -18,476.25 0.04 -25.42% -44.38%
13 Gujarat Alkalies & Chemicals Ltd. CHEMICALS ₹ 126.00 ₹ 181.95 331 ₹ 41,706.00 ₹ 60,225.45 ₹ 18,519.45 0.04 20.17% 44.40%
14 Balmer Lawrie & Company Ltd. SERVICES ₹ 79.69 ₹ 75.89 523 ₹ 41,679.36 ₹ 39,689.16 ₹ -1,990.20 0.04 -2.42% -4.78%
15 Escorts Ltd. AUTOMOBILE ₹ 72.85 ₹ 115.25 572 ₹ 41,670.20 ₹ 65,923.00 ₹ 24,252.80 0.04 25.78% 58.20%
16 JB Chemicals & Pharmaceuticals Ltd. PHARMA ₹ 64.05 ₹ 128.10 650 ₹ 41,632.50 ₹ 83,265.00 ₹ 41,632.50 0.04 41.42% 100.00%
17 Finolex Cables Ltd. INDUSTRIAL MANUFACTURING ₹ 32.30 ₹ 110.70 1289 ₹ 41,634.70 ₹ 1,42,692.30 ₹ 1,01,057.60 0.04 85.13% 242.72%
18 Maharashtra Scooters Ltd. AUTOMOBILE ₹ 303.80 ₹ 455.45 137 ₹ 41,620.60 ₹ 62,396.65 ₹ 20,776.05 0.04 22.44% 49.92%
19 Navin Fluorine International Ltd. CHEMICALS ₹ 72.10 ₹ 69.64 577 ₹ 41,601.70 ₹ 40,182.28 ₹ -1,419.42 0.04 -1.72% -3.41%
20 KNR Construction Ltd. CONSTRUCTION ₹ 24.76 ₹ 17.00 1682 ₹ 41,646.32 ₹ 28,594.00 ₹ -13,052.32 0.04 -17.14% -31.34%
21 Kolte Patil Developers Ltd. CONSTRUCTION ₹ 41.45 ₹ 103.65 1005 ₹ 41,657.25 ₹ 1,04,168.25 ₹ 62,511.00 0.04 58.13% 150.06%
22 Cera Sanitaryware Ltd. CONSTRUCTION ₹ 232.70 ₹ 884.15 179 ₹ 41,653.30 ₹ 1,58,262.85 ₹ 1,16,609.55 0.04 94.92% 279.95%
23 IFB Industries Ltd. CONSUMER GOODS ₹ 79.85 ₹ 79.20 521 ₹ 41,601.85 ₹ 41,263.20 ₹ -338.65 0.04 -0.41% -0.81%
24 Bliss GVS Pharma Ltd. PHARMA ₹ 23.60 ₹ 45.00 1763 ₹ 41,606.80 ₹ 79,335.00 ₹ 37,728.20 0.04 38.09% 90.68%
₹ 9,99,997.90 ₹ 14,40,266.72 4,40,268.82 1.00 20.01% 44.03%

Amount Invested ₹ 10,00,000.00 NSE 500 Index

Balance ₹ 2.10 April, 2012 4222.2 Absolute CAGR 20.01%
March, 2014 5224.45 Absolute Return 44.03%
Market Return 23.74%
Excess Return 20.29% SD of the portfolio 85.91%

20
 PORTFOLIO OF THE PERIOD APRIL 2013 to MARCH 2015
Market Price No. of
S no Company Name Sector Apr, 2013 Mar, 2015 Shares Investment Realised Profit Weights CAGR% Returns%
1 NMDC Ltd. METALS ₹ 135.15 ₹ 128.75 307 ₹ 41,491.05 ₹ 39,526.25 ₹ -1,964.80 0.04 -2.40% -4.74%
2 Hindustan Zinc Ltd. METALS ₹ 119.95 ₹ 162.15 347 ₹ 41,622.65 ₹ 56,266.05 ₹ 14,643.40 0.04 16.27% 35.18%
3 Bharat Heavy Electricals Ltd. INDUSTRIAL MANUFACTURING ₹ 121.67 ₹ 156.90 343 ₹ 41,731.67 ₹ 53,816.70 ₹ 12,085.03 0.04 13.56% 28.96%
4 Oil India Ltd. ENERGY ₹ 254.93 ₹ 227.48 163 ₹ 41,552.78 ₹ 37,078.43 ₹ -4,474.35 0.04 -5.54% -10.77%
5 Grasim Industries Ltd. CEMENT & CEMENT PRODUCTS ₹ 561.82 ₹ 724.47 74 ₹ 41,574.68 ₹ 53,610.78 ₹ 12,036.10 0.04 13.56% 28.95%
6 NLC India Ltd. ENERGY ₹ 67.65 ₹ 69.55 616 ₹ 41,672.40 ₹ 42,842.80 ₹ 1,170.40 0.04 1.39% 2.81%
7 SJVN Ltd. ENERGY ₹ 19.35 ₹ 24.45 2,154 ₹ 41,679.90 ₹ 52,665.30 ₹ 10,985.40 0.04 12.41% 26.36%
8 Engineers India Ltd. CONSTRUCTION ₹ 76.80 ₹ 96.58 543 ₹ 41,702.40 ₹ 52,440.23 ₹ 10,737.83 0.04 12.14% 25.75%
9 TV18 Broadcast Ltd. MEDIA & ENTERTAINMENT ₹ 27.95 ₹ 30.30 1,491 ₹ 41,673.45 ₹ 45,177.30 ₹ 3,503.85 0.04 4.12% 8.41%
10 Trent Ltd. CONSUMER GOODS ₹ 99.54 ₹ 146.98 419 ₹ 41,707.26 ₹ 61,584.62 ₹ 19,877.36 0.04 21.52% 47.66%
11 Pfizer Ltd. PHARMA ₹ 1,077.40 ₹ 2,230.15 39 ₹ 42,018.60 ₹ 86,975.85 ₹ 44,957.25 0.04 43.87% 106.99%
12 Network 18 Media & Investment Ltd. MEDIA & ENTERTAINMENT ₹ 30.85 ₹ 50.05 1,350 ₹ 41,647.50 ₹ 67,567.50 ₹ 25,920.00 0.04 27.37% 62.24%
13 Gujarat State Fertilizers & Chemicals Ltd. FERTILISERS & PESTICIDES ₹ 58.65 ₹ 83.25 710 ₹ 41,641.50 ₹ 59,107.50 ₹ 17,466.00 0.04 19.14% 41.94%
14 PC Jeweller Ltd. CONSUMER GOODS ₹ 61.68 ₹ 158.80 676 ₹ 41,692.30 ₹ 1,07,348.80 ₹ 65,656.50 0.04 60.46% 157.48%
15 Cyient Ltd. IT ₹ 170.60 ₹ 501.90 244 ₹ 41,626.40 ₹ 1,22,463.60 ₹ 80,837.20 0.04 71.52% 194.20%
16 NIIT Technologies Ltd. IT ₹ 279.85 ₹ 349.30 149 ₹ 41,697.65 ₹ 52,045.70 ₹ 10,348.05 0.04 11.72% 24.82%
17 Astrazeneca Pharma India Ltd. PHARMA ₹ 706.10 ₹ 920.90 59 ₹ 41,659.90 ₹ 54,333.10 ₹ 12,673.20 0.04 14.20% 30.42%
18 Gujarat Alkalies & Chemicals Ltd. CHEMICALS ₹ 187.35 ₹ 159.90 222 ₹ 41,591.70 ₹ 35,497.80 ₹ -6,093.90 0.04 -7.62% -14.65%
19 NBCC (India) Ltd. CONSTRUCTION ₹ 8.34 ₹ 63.80 4,994 ₹ 41,666.61 ₹ 3,18,617.20 ₹ 2,76,950.59 0.04 176.53% 664.68%
20 Allcargo Logistics Ltd. SERVICES ₹ 58.93 ₹ 157.78 707 ₹ 41,659.98 ₹ 1,11,546.93 ₹ 69,886.95 0.04 63.63% 167.76%
21 Balmer Lawrie & Company Ltd. SERVICES ₹ 88.44 ₹ 140.16 471 ₹ 41,653.22 ₹ 66,016.54 ₹ 24,363.32 0.04 25.89% 58.49%
22 Jai Corp Ltd. INDUSTRIAL MANUFACTURING ₹ 53.10 ₹ 55.95 785 ₹ 41,683.50 ₹ 43,920.75 ₹ 2,237.25 0.04 2.65% 5.37%
23 Maharashtra Scooters Ltd. AUTOMOBILE ₹ 372.90 ₹ 880.95 112 ₹ 41,764.80 ₹ 98,666.40 ₹ 56,901.60 0.04 53.70% 136.24%
24 Navin Fluorine International Ltd. CHEMICALS ₹ 43.59 ₹ 167.11 954 ₹ 41,584.86 ₹ 1,59,422.94 ₹ 1,17,838.08 0.04 95.80% 283.37%
TOTAL ₹ 9,99,996.74 ₹ 18,78,539.05 ₹ 8,78,542.31 1.00 37.06% 87.85%

Amount Invested ₹ 10,00,000.00 NSE 500 Index

Balance ₹ 3.26 April, 2013 4449.35 Absolute CAGR 37.06%
March, 2015 7001.7
Absolute Return 87.85%
Market Return 57.36%
Excess Return 30.49% SD of the portfolio 143.74%

21
 PORTFOLIO OF THE PERIOD APRIL 2014 to MARCH 2016
S No Company Name Sector Market Price No. of
Apr, 2014 Mar, 2016 Shares Investment Realised Profit Weights CAGR% Returns%
1 Hindustan Zinc Ltd. METALS ₹ 130.80 ₹ 183.60 450 ₹ 58,860.00 ₹ 82,620.00 ₹ 23,760.00 0.06 18.48% 40.37%
2 Bharat Heavy Electricals Ltd. INDUSTRIAL MANUFACTURING ₹ 129.67 ₹ 75.90 454 ₹ 58,868.67 ₹ 34,458.60 ₹ -24,410.07 0.06 -23.49% -41.47%
3 Oil India Ltd. ENERGY ₹ 246.10 ₹ 156.50 239 ₹ 58,817.90 ₹ 37,403.50 ₹ -21,414.40 0.06 -20.26% -36.41%
4 MRF Ltd. AUTOMOBILE ₹ 21,669.35 ₹ 38,296.75 3 ₹ 65,008.05 ₹ 1,14,890.25 ₹ 49,882.20 0.07 32.94% 76.73%
5 SJVN Ltd. ENERGY ₹ 21.55 ₹ 28.65 2,707 ₹ 58,335.85 ₹ 77,555.55 ₹ 19,219.70 0.06 15.30% 32.95%
6 Apollo Tyres Ltd. AUTOMOBILE ₹ 162.30 ₹ 174.90 359 ₹ 58,265.70 ₹ 62,789.10 ₹ 4,523.40 0.06 3.81% 7.76%
7 Tata Global Beverages Ltd. CONSUMER GOODS ₹ 154.25 ₹ 121.25 378 ₹ 58,306.50 ₹ 45,832.50 ₹ -12,474.00 0.06 -11.34% -21.39%
8 GE Power India Ltd. INDUSTRIAL MANUFACTURING ₹ 421.25 ₹ 607.45 139 ₹ 58,553.75 ₹ 84,435.55 ₹ 25,881.80 0.06 20.08% 44.20%
9 MMTC Ltd. SERVICES ₹ 35.37 ₹ 24.97 1,650 ₹ 58,355.00 ₹ 41,195.00 ₹ -17,160.00 0.06 -15.98% -29.41%
10 CG Power & Industrial Solutions Ltd. INDUSTRIAL MANUFACTURING ₹ 157.35 ₹ 48.85 371 ₹ 58,376.85 ₹ 18,123.35 ₹ -40,253.50 0.06 -44.28% -68.95%
11 Gujarat State Fertilizers & Chemicals Ltd. FERTILISERS & PESTICIDES ₹ 55.10 ₹ 64.25 1,059 ₹ 58,350.90 ₹ 68,040.75 ₹ 9,689.85 0.06 7.98% 16.61%
12 Bombay Burmah Trading Corporation Ltd. CONSUMER GOODS ₹ 107.00 ₹ 366.80 545 ₹ 58,315.00 ₹ 1,99,906.00 ₹ 1,41,591.00 0.06 85.15% 242.80%
14 Gujarat Mineral Development Corporation Ltd. METALS ₹ 133.55 ₹ 65.40 437 ₹ 58,361.35 ₹ 28,579.80 ₹ -29,781.55 0.06 -30.02% -51.03%
15 Balmer Lawrie & Company Ltd. SERVICES ₹ 76.60 ₹ 143.23 760 ₹ 58,216.00 ₹ 1,08,851.00 ₹ 50,635.00 0.06 36.74% 86.98%
16 Sonata Software Ltd. IT ₹ 46.15 ₹ 145.75 1,265 ₹ 58,379.75 ₹ 1,84,373.75 ₹ 1,25,994.00 0.06 77.71% 215.82%
17 Gujarat Alkalies & Chemicals Ltd. CHEMICALS ₹ 183.95 ₹ 165.55 317 ₹ 58,312.15 ₹ 52,479.35 ₹ -5,832.80 0.06 -5.13% -10.00%
18 Maharashtra Seamless Ltd. METALS ₹ 197.65 ₹ 143.75 295 ₹ 58,306.75 ₹ 42,406.25 ₹ -15,900.50 0.06 -14.72% -27.27%
Total ₹ 9,99,990.17 ₹ 12,83,940.30 ₹ 2,83,950.13 1.00 13.31% 28.40%

Amount Invested ₹ 10,00,000.00 NSE 500 Index Absolute CAGR 13.31%

Balance ₹ 9.83 April, 2014 5244.15 Absolute Return 28.40%
March, 2016 6437.1 SD of the portfolio 87.71%
Market Return 22.75%
Excess Return 5.65%

22
 PORTFOLIO OF THE PERIOD APRIL 2015 to MARCH 2017

Market Price No. of

S.NO Company Name Sector Apr, 2015 Mar, 2017 Shares Investment Realised Profit Weights CAGR% Returns%
1 Apollo Tyres Ltd. AUTOMOBILE ₹ 162.55 ₹ 208.70 324 ₹ 52,666.20 ₹ 67,618.80 ₹ 14,952.60 0.05 13.31% 28.39%
2 Astrazeneca Pharma India Ltd. PHARMA ₹ 885.05 ₹ 949.70 60 ₹ 53,103.00 ₹ 56,982.00 ₹ 3,879.00 0.05 3.59% 7.30%
3 DCM Shriram Ltd. CONSUMER GOODS ₹ 104.30 ₹ 299.80 505 ₹ 52,671.50 ₹ 1,51,399.00 ₹ 98,727.50 0.05 69.54% 187.44%
4 Delta Corp Ltd. SERVICES ₹ 76.35 ₹ 177.30 689 ₹ 52,605.15 ₹ 1,22,159.70 ₹ 69,554.55 0.05 52.39% 132.22%
5 Firstsource Solutions Ltd. IT ₹ 28.60 ₹ 41.35 1839 ₹ 52,595.40 ₹ 76,042.65 ₹ 23,447.25 0.05 20.24% 44.58%
6 Fortis Healthcare Ltd. HEALTHCARE SERVICES ₹ 169.10 ₹ 177.90 311 ₹ 52,590.10 ₹ 55,326.90 ₹ 2,736.80 0.05 2.57% 5.20%
7 Gujarat Alkalies & Chemicals Ltd. CHEMICALS ₹ 162.45 ₹ 409.75 324 ₹ 52,633.80 ₹ 1,32,759.00 ₹ 80,125.20 0.05 58.82% 152.23%
8 Gujarat Mineral Development Corporation Ltd. METALS ₹ 113.90 ₹ 123.00 462 ₹ 52,621.80 ₹ 56,826.00 ₹ 4,204.20 0.05 3.92% 7.99%
9 Gujarat State Fertilizers & Chemicals Ltd. FERTILISERS & PESTICIDES ₹ 79.20 ₹ 123.30 664 ₹ 52,588.80 ₹ 81,871.20 ₹ 29,282.40 0.05 24.77% 55.68%
10 Himachal Futuristic Communications Ltd. TELECOM ₹ 13.65 ₹ 12.90 3849 ₹ 52,538.85 ₹ 49,652.10 ₹ -2,886.75 0.05 -2.79% -5.49%
11 Hindustan Zinc Ltd. METALS ₹ 160.35 ₹ 325.35 328 ₹ 52,594.80 ₹ 1,06,714.80 ₹ 54,120.00 0.05 42.44% 102.90%
12 Indiabulls Integrated Services Ltd. IT ₹ 11.60 ₹ 30.90 4531 ₹ 52,559.60 ₹ 1,40,007.90 ₹ 87,448.30 0.05 63.21% 166.38%
13 Intellect Design Arena Ltd. IT ₹ 97.00 ₹ 108.40 542 ₹ 52,574.00 ₹ 58,752.80 ₹ 6,178.80 0.05 5.71% 11.75%
14 MMTC Ltd. SERVICES ₹ 31.85 ₹ 42.65 1651 ₹ 52,584.35 ₹ 70,415.15 ₹ 17,830.80 0.05 15.72% 33.91%
15 National Aluminium Company Ltd. METALS ₹ 43.00 ₹ 75.35 1223 ₹ 52,589.00 ₹ 92,153.05 ₹ 39,564.05 0.05 32.38% 75.23%
16 NLC India Ltd. ENERGY ₹ 68.70 ₹ 108.25 766 ₹ 52,624.20 ₹ 82,919.50 ₹ 30,295.30 0.05 25.53% 57.57%
17 NMDC Ltd. METALS ₹ 125.35 ₹ 136.70 420 ₹ 52,647.00 ₹ 57,414.00 ₹ 4,767.00 0.05 4.43% 9.05%
18 SJVN Ltd. ENERGY ₹ 24.95 ₹ 33.45 2107 ₹ 52,569.65 ₹ 70,479.15 ₹ 17,909.50 0.05 15.79% 34.07%
19 Sun Pharma Advanced Research Company Ltd. PHARMA ₹ 474.25 ₹ 324.00 111 ₹ 52,641.75 ₹ 35,964.00 ₹ -16,677.75 0.05 -17.35% -31.68%
TOTAL ₹ 9,99,998.95 ₹ 15,65,457.70 ₹ 5,65,458.75 1.00 25.12% 56.55%

Amount Invested ₹ 10,00,000.00 NSE 500 Index Absolute CAGR 25.12%

Balance ₹ 1.05 April, 2015 6975.8 Absolute Return 56.55%
March, 2017 7975.05 SD of the portfolio 63.18%
Market Return 14.32%
Excess Return 42.22%

23
 PORTFOLIO OF THE PERIOD APRIL 2016 to MARCH 2018

Market Price No of
S No Stock Name Sector Apr,2016 Mar,2018 Shares Investment Realised Profit Weights CAGR % Returns %
1 MRF Ltd. AUTOMOBILE ₹ 34,716.00 ₹ 69,236.00 2 ₹ 69,432.00 ₹ 1,38,472.00 ₹ 69,040.00 0.07 41.22% 99.44%
2 GE Power India Ltd. INDUSTRIAL MANUFACTURING ₹ 571.30 ₹ 861.00 102 ₹ 58,272.60 ₹ 87,822.00 ₹ 29,549.40 0.06 22.76% 50.71%
3 Bombay Burmah Trading Corporation Ltd. CONSUMER GOODS ₹ 360.00 ₹ 1,111.00 162 ₹ 58,320.00 ₹ 1,79,982.00 ₹ 1,21,662.00 0.06 75.67% 208.61%
4 Intellect Design Arena Ltd. IT ₹ 189.75 ₹ 160.00 306 ₹ 58,063.50 ₹ 48,960.00 ₹ -9,103.50 0.06 -8.17% -15.68%
5 Hindustan Zinc Ltd. METALS ₹ 171.50 ₹ 301.45 339 ₹ 58,138.50 ₹ 1,02,191.55 ₹ 44,053.05 0.06 32.58% 75.77%
6 Gujarat Alkalies & Chemicals Ltd. CHEMICALS ₹ 164.40 ₹ 708.85 354 ₹ 58,197.60 ₹ 2,50,932.90 ₹ 1,92,735.30 0.06 107.65% 331.17%
7 Oil India Ltd. ENERGY ₹ 156.65 ₹ 233.30 371 ₹ 58,117.15 ₹ 86,554.30 ₹ 28,437.15 0.06 22.04% 48.93%
8 Sonata Software Ltd. IT ₹ 152.25 ₹ 310.25 382 ₹ 58,159.50 ₹ 1,18,515.50 ₹ 60,356.00 0.06 42.75% 103.78%
9 Maharashtra Seamless Ltd. METALS ₹ 142.35 ₹ 427.30 408 ₹ 58,078.80 ₹ 1,74,338.40 ₹ 1,16,259.60 0.06 73.26% 200.18%
10 Balmer Lawrie & Company Ltd. SERVICES ₹ 137.00 ₹ 216.00 424 ₹ 58,088.00 ₹ 91,584.00 ₹ 33,496.00 0.06 25.56% 57.66%
11 Tata Global Beverages Ltd. CONSUMER GOODS ₹ 118.90 ₹ 272.40 489 ₹ 58,142.10 ₹ 1,33,203.60 ₹ 75,061.50 0.06 51.36% 129.10%
12 Bharat Heavy Electricals Ltd. INDUSTRIAL MANUFACTURING ₹ 77.60 ₹ 81.40 750 ₹ 58,200.00 ₹ 61,050.00 ₹ 2,850.00 0.06 2.42% 4.90%
13 Gujarat Mineral Development Corporation Ltd. METALS ₹ 65.40 ₹ 121.70 889 ₹ 58,140.60 ₹ 1,08,191.30 ₹ 50,050.70 0.06 36.41% 86.09%
14 Gujarat State Fertilizers & Chemicals Ltd. FERTILISERS & PESTICIDES ₹ 65.40 ₹ 116.30 889 ₹ 58,140.60 ₹ 1,03,390.70 ₹ 45,250.10 0.06 33.35% 77.83%
15 CG Power & Industrial Solutions Ltd. INDUSTRIAL MANUFACTURING ₹ 47.70 ₹ 73.00 1,219 ₹ 58,146.30 ₹ 88,987.00 ₹ 30,840.70 0.06 23.71% 53.04%
16 SJVN Ltd. ENERGY ₹ 29.05 ₹ 34.35 2,003 ₹ 58,187.15 ₹ 68,803.05 ₹ 10,615.90 0.06 8.74% 18.24%
17 MMTC Ltd. SERVICES ₹ 23.85 ₹ 36.35 2,439 ₹ 58,170.15 ₹ 88,657.65 ₹ 30,487.50 0.06 23.45% 52.41%
Total ₹ 9,99,994.55 ₹ 19,31,635.95 ₹ 9,31,641.40 1.00 38.98% 93.16%

Amount Invested ₹ 10,00,000.00 NSE 500 Index Absolute CAGR 38.98%

Available ₹ 5.45 April, 2016 6,438.40 Absolute Return 93.16%
March, 2018 8,940.20 SD of the portfolio 85.51%
Market Return 38.86%
Excess Return 54.31%

24
 COVARIANCE

Covariance is used in portfolio theory to determine what assets to include in the portfolio. Covariance is a statistical measure of the
directional relationship between two asset prices. Portfolio theory uses this statistical measurement to reduce the overall risk for a
portfolio. A positive covariance means that assets generally move in the same direction. Negative covariance means assets generally
move in opposite directions. Correlation Coefficient is the best measure of covariance

Company Gujarat Alkalies & Chemicals Ltd. Gujarat State Fertilizers & Chemicals Ltd.
Sector CHEMICALS FERTILISERS & PESTICIDES

Period Returns of Four periods

2016-18 331.17% 77.83%
2015-17 152.23% 55.68%
2014-16 -10.00% 16.61%
2013-15 -14.65% 41.94%

Correlation 90.82%
Covariance 28.61%

Inference
As the resultant number is positive, the two stocks had a positive covariance with respect to the returns
And they have a high positive correlation, with respect to their movement in the returns

25
 INFORMATION RATIO

Returns

Year NIFTY Portfolio Excess Return

2009-2011 101.87% 168.15% 66.28%

2010-2012 -4.55% 34.25% 38.81%

2011-2013 -4.96% 11.22% 16.18%

2012-2014 23.74% 44% 20.29%

2013-2015 57.36% 87.85% 30.49%

2014-2016 22.75% 28.40% 5.65%

2015-2017 14.32% 56.55% 42.22%

2016-2018 38.86% 93% 54.31%

Average Return 31.17% 65.45% 34.28%

Excess of Average Portfolio Return Over the Benchmark 34.28%

Tracking Error 20.23%

Information Ratio 169.40%

26
 7.5 SECTOR-WISE HIGHEST AVERAGE RETURN
2009-11
350.00% 330.73%

300.00%

250.00%
214.05%
197.46%
200.00%
174.90%
160.50%
150.00% 136.30%

106.58%
100.00% 83.25% 77.54% 77.52%
49.87%
50.00%

0.00%

PHARMA
ENERGY
CONSUMER GOODS

SERVICES
IT

METALS
CHEMICALS

CONSTRUCTION

INDUSTRIAL MANUFACTURING
FERTILISERS & PESTICIDES
CEMENT & CEMENT PRODUCTS

Average Return

27
120.00%
106.41% 2010-12
100.00%
86.97%

80.00%

60.00%
45.84%
38.03%
40.00% 32.44%

20.00%
6.91%

0.00%
-1.45%
-5.36%
-20.00%
-24.59%
-40.00%

PHARMA
METALS
AUTOMOBILE

CONSUMER GOODS

INDUSTRIAL MANUFACTURING

IT
CHEMICALS

CONSTRUCTION
CEMENT & CEMENT PRODUCTS

Average Return

28
 2011-13
Average Return

100.00%
81.92%
80.00%

60.00%
47.16%
40.00%
18.44%
20.00% 9.81%
3.98%
0.00%

-20.00% -8.77%

-40.00% -33.17% -30.32%

-40.62%
-60.00%

PHARMA
ENERGY
CONSUMER GOODS

IT

METALS
CHEMICALS

CONSTRUCTION

INDUSTRIAL MANUFACTURING
CEMENT & CEMENT PRODUCTS

29
 2012-14
Average Return

160.00%

140.00% 132.89%

120.00%

100.00% 95.34%
89.62%

80.00% 74.06%

60.00% 54.06%

40.00%
20.50%
20.00% 10.25% 8.14%
0.00%
-4.78%
-20.00% -12.18%
-22.74%
-40.00%
CEMENT & CEMENT PRODUCTS

ENERGY

PHARMA
AUTOMOBILE

SERVICES
CONSUMER GOODS

IT

METALS
CHEMICALS

CONSTRUCTION

INDUSTRIAL MANUFACTURING

30
 2013-15
Average Return

400.00%

345.22%
350.00%

300.00%

250.00%

200.00%

150.00% 136.24% 134.36%

109.51% 113.12%
102.57%
100.00%
68.71%
41.94% 35.32%
50.00% 28.95%
17.16% 15.22%
6.13%
0.00%
CHEMICALS

PHARMA
ENERGY
AUTOMOBILE

CONSUMER GOODS

SERVICES
IT

METALS
CONSTRUCTION

INDUSTRIAL MANUFACTURING

MEDIA & ENTERTAINMENT

FERTILISERS & PESTICIDES
CEMENT & CEMENT PRODUCTS

31
250.00%
2014-16
215.82%

200.00%

150.00%

110.70%
100.00%

50.00% 42.25%
28.79%
16.61%

0.00%
-1.73%
-10.00% -12.64%
-22.07%
-50.00%

SERVICES
ENERGY
AUTOMOBILE

CONSUMER GOODS

METALS
IT
CHEMICALS

INDUSTRIAL MANUFACTURING
FERTILISERS & PESTICIDES

Average Return

32
 2015-17
Average Return

200.00% 187.44%

152.23%
150.00%

100.00%
83.06%
74.24%
55.68%
45.82% 48.79%
50.00%
28.39%

5.20%
0.00%
-5.49%
-12.19%

-50.00%

PHARMA
ENERGY

TELECOM
AUTOMOBILE

CONSUMER GOODS

METALS
IT

SERVICES
CHEMICALS

HEALTH CARE SERVICES

FERTILISERS & PESTICIDES

33
 2016-18
Average Return

350.00% 331.17%

300.00%

250.00%

200.00%
168.86%

150.00%
120.68%
99.44%
100.00%
55.68% 55.04%
50.00% 36.22% 33.59% 36.22%

0.00%

METALS
ENERGY
AUTOMOBILE

CONSUMER GOODS

IT

SERVICES
CHEMICALS

INDUSTRIAL MANUFACTURING

FERTILISERS & PESTICIDES

34
 8. FINDINGS AND CONCLUSION
The results of the backtested data shows that Graham’s Portfolio model would
have outperformed the Market right from the year 2009 till the end of 2018,
Almost a Decade.
This clearly depicts the importance of analysing companies with low Price
Earnings ratio and identifying the potential undervalued companies which
would generate promising returns in the future.

The Time period with the Highest return was 2009-2011 with 168.15 %
And the Time period with the lowest return was 2011-2013 with 11.33%.

The information ratio is a crucial assessing factor which shows that the portfolio
is able to generate excess return subject to the existing risk and volatility with
respect to the benchmark (NIFTY 500 index in this case).

Thus Benjamin Graham’s model outperformed the market returns while

backtested with the historical data of 10 years with consistency in returns.

The Test has been carried out in Eight “Two year” time periods and the
portfolio performance has been assessed with Return on Investment,
Compounded Annual Growth Rate, Standard Deviation.

Further as a part of risk assessing, Covariance has been calculated between two
stocks which resulted in a positive number 28.61% and indicated identical
movement in their prices.

And Information ratio tells the investor how much the active returns of the
portfolio has outperformed the Benchmark index with respect to the volatility. It
shows how consistently the portfolio returns have outperformed the market
benchmark index. A higher resultant number indicates the consistency of the
portfolio return outperforming the benchmark index.

The resulted number was 169.4% which shows the consistency of the portfolio
to generate risk adjusted returns over the years from 2009 to 2018.

Further to make the analysis more deeper, the industrial sector wise comparison
was introduced and year on year the sector with the highest average return was
found for the purpose of keeping a track on the performance of that particular
industrial sector(s).

35
 9. BIBLIOGRAPHY
Books:
1. Wesley.R.Grey, “Quantitative Value – A Practitioner’s guide to
automating intelligent investment and elimination behavioural errors”

2. Benjamin Graham, “The Intelligent Investor”

Websites:
1. screener.in
2. nseindia.com
3. tradingview.com
4. moneycontrol.com

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