Midcaps are back in favour and those of you who missed reading the 8th Anniversary issue of Wealth Insight, we had featured a hand-picked collection of 28 stocks to build your midcap portfolio. The portfolio was built using our expertise in evaluating mutual funds, a practice that is ingrained in Value Research for over the past two decades.
|Total Investment (₹)||280686|
|Current Market Value (₹)||326693.7|
|Unrealised Gain (₹)||46007.4|
|Dividends Received (₹)||1891|
|Total Gain (%)||16.4|
As a first step, we selected four consistently performing midcap funds: Axis Midcap managed by Pankaj Murarka, HDFC Equity managed by Prashant Jain, IDFC Premier managed by Kenneth Andrade, and ICICI Prudential Value Discovery managed by Mrinal Singh.
|Sector||Net Asset (%)||Value (₹)|
Next, we combined the unique stock universe that these funds invest in and excluded the large-cap stocks. We then excluded stocks that were highly overvalued. We also excluded stocks where these funds were reducing their holdings as well as those where the holdings were insignificant. Finally, we also excluded companies with consistently falling RoE. This left us with a universe of 28 companies.
In the accompanying table, we have updated the performance of this portfolio, indicating how much an investment of ₹10,000 in each stock would be worth now.
Sceptics may argue the futility of this exercise over a three month period, however, these stocks offer an opportunity even now. In this section, we will frequently update this portfolio, including any changes that may occur.
|Company Name||Cost per|
|Amara Raja Batteries||482||10115||21||584||12260||21.2|
|FAG Bearings India||2465||9861||4||2900||11600||17.6|
|Godfrey Phillips India||2904||11615||4||3170||12680||9.2|
|Gujarat State Petronet||76||9976||131||87||11397||14.2|
|ING Vysya Bank||634||10150||16||627||10032||-1.2|
|Karur Vysya Bank||451||9921||22||501||11022||11.1|
|Kaveri Seed Company||663||9949||15||965||14468||45.4|
|Kirloskar Pneumatic Co.||572||10296||18||620||11160||8.4|
|Mcleod Russel (India)||293||9967||34||294||9999||0.3|
|P&G Hygiene & Health Care||4013||8027||2||5071||10143||26.4|
|Savita Oil Technologies||617||9872||16||715||11440||15.9|
|VST Tillers Tractors||1816||10896||6||1650||9900||-9.1|