Wednesday, October 25, 2006

Portfolio Game

India's most hated blogger started this game. Nothing new about it, just the same old portfolio game, where one picks a portfolio of stocks in Indian stock market for Rs. 1 lakh (i.e. Rs. 100,000.00) and plays the game based on real life prices. Ofcourse he forgot to mention the specifics as usual.

For share prices use the NSE and BSE sites. We were supposed to start the game today, October 25th, but today the market is closed due to Id. (Indian markets are closed for any and every festival). So let me take the closing price of the last traded date i.e. 23rd October.

My portfolio will be

State Bank of India 50 shares @ Rs. 1025.15 = Rs. 51,257.50

Reliance Energy 50 shares @ Rs. 465.05 = Rs. 23,252.50

EID Parry 100 shares @ Rs. 162.60 = Rs.16,260.00

Andra Petrochemicals 650 share @ Rs. 14.23 = Rs. 9249.50

Total Rs. 1,00,019.50

Why these shares?

SBI - Mainly betting on the IPO of its subsidiaries. Did you know that the subsidiaries of SBI put together are India's second largest banking entity? At current prices the PE is 13.5 and Price to Book Value is 1.84.

Reliance Energy - In real life I bought this at Rs. 600 levels, so hoping it will go up. Jokes apart, I think their mega power projects will lead to increased earnings. PE is 20, P/BV is 1.87.

EID Parry - This is my conservative pick. They have a stable business and are a no nonsense business group. PE is 23 and P/BV is 5, but some how I find this company to be a safer pick, don't ask me why.

Andhra Petro - based on a tip from a long term market player. This is my risky pick. From 5 years of dabbling in the Indian markets, I have seen many such dark horses gallop away, so let me see whether this is going to be a stud or a donkey.


ada-paavi!!!! said...

chenthil, ur being the conservative investor, take some risk. isnt the game about taking risk? thats the fun of investing in stock markets. take risk, u win some ulose some :)

I said...

yo, I am gudhiching as well.

swami said...

Chenthil - How do I participate? Can I leave a comment here?

Chenthil said...

Vatsan, I am trying to keep it as close to real life as possible. So no stunts.

I - welcome

Swami - just make a post of your portfolio in your blog and send link the . He is the one who is co ordinating this.

long term player said...

O ye of little faith. Risk like beauty lies in the eye of the beholder. Btw Andhra Petro has registered a five fold increase in net profit. Good Na? No risk at all baa only kamayee.