Hyderabad Industries Ltd (BSE:HYDIND) sells products in the building and construction industry. Its product range include Fibre Cement roofing sheets in the name of CHARMINAR, Autoclaved Aerated Concrete Blocks and Panels called AEROCON, Calcium Silicate insulation product called HYSIL, joining material for Gaskets, Plant and machinery for these products.
HYDIND is a part of C.K.Birla group of Companies. This group of Birla’s also owns the waning Hindustan Motors (i.e. Ambassador brand). My objective in this analysis to see if HYDIND is a good fit for my portfolio.
Trend Analysis
The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 10 years i.e. from 2000 to 2009.
My objective of investing in index based ETF is to have a total return that is somewhat similar to the market performance as a whole. It also acts as my benchmark for other long term portfolios. As mentioned in earlier post, if I cannot beat the market by stock selection, I should just close my long term portfolio and invest everything in these index ETFs.
I have been trying to understand the options available for the index based investments that include index based mutual funds or exchange traded funds. In principle, I am fan of exchange traded funds because (a) they follow a given index; (b) no manager involvement; and (c) low cost structure. Index based fund investments are very good vehicle if an individual wants to avoid stock selection and just wants to follow the index performance. In general, for last 10 years, the NIFTY index has returned an average of 15.5% per year. This return excludes the dividend payments.
Voltamp Transformers Limited (VOLTAMP) is one of the leading player in customized transformers for industrial applications. It has a niche in 132kV market segment and now looking to expand upto 220kV market segment. The key aspect that I like about Voltamp Transformers is its focus on niche market. It has created a space for itself in industrial segments, has zero debt, and focus of controlled growth.
I received quite a bit of interesting response to my last post about THE HINDU working in foreign partners. When I posted this note and a question for readers to judge, I had decided not respond because it was not related to investing. However, reading through this discussion, I can see many have put lot of thoughts behind their responses and I got to know differing viewpoints. I respect your differing opinions and hence I am compelled to present my thoughts too.
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