PORTFOLIO

MANAGEMEnt
PROJECT
 Introduction of the companies
 Indiabulls Real Estate Ltd:
Indiabulls Real Estate Limited operates as a real estate company in
India. The company engages in the construction and development of real
estate projects, as well as the provision of real est ate
projects advisory services. Indiabulls Real Estate Limited with projects
covering a total land area in excess of 10000 acres is one of the largest
listed real estate companies in India and a leading national player across
multiple realty and infrastructure sectors. It develops various realty and
infrastructure projects such as High-end Office and Commercial Spaces,
Premium Residential Developments, Integrated Townships, Luxury
Resorts and Special Economic Zones. IBREL is partners with
internationally-renowned consultants and construction companies for its
developments at various stages of execution.
Indiabulls Real Estate Limited has a pan-India presence. From the
iconic Sky towers in South Mumbai to sprawling SEZs and residential
townships in major cities across the country, it is making its vision
dynamically come to life. Indiabulls Real Estate has partnered with
Farallon Capital Management LLC of USA to bring the first FDI into
real estate. Indiabulls Real Estate is transforming 26 million sq ft in 16
cities into premium quality, high-end commercial, residential and retail
spaces. The company has diversified significantly in the following
business verticals within the real estate space: Real Estate Development,
Project Advisory & Facilities Management: Residential, Commercial
(Office and Malls) and SEZ Development. Power: Thermal and Hydro
Power Generation.
Price details:

Particulars BSE NSE

Open 170.00 170.00
Day High 173.00 173.00
Day Low 169.50 169.05
Previous Close 169.00 168.80
52-Week high 298.10 298.50
52-Week low 141.65 141.70
P/E 0.00 0.00
Market Cap (Rs cr) 6878.26 6882.27
Volume 639704.00 2855968.00

Performance analysis:
Pariculars
EPS 056
Free Float (%) 77.90
FII holding 59.15
ROCE(%) 23.69
*Face Value (in Rs): 2.00

Financial Results (Quarterly):

Particulars Mar-10 Dec-09
Sale 2521 187
Other Income 1783 2148
Total expenses 2289 735
Net Profit 565 487
Equity 8031 8030
Shareholding Pattern:
Particulars Dec-09 Sep-09
Indian Promoters 16.72 16.72
MFs \ UTI 1.51 3.74
Banks/FIs - 0.01
FIIs 69.74 67.43
PCB 1.84 2.09
Indian Public 3.35 3.21
Others 3.72 3.80
No. of shares 401475239 401340239
  Zandu Realty Ltd :
The Zandu Pharmaceutical Works Limited manufactures and sells ayurvedic
products in India. It offers a range of ayurvedic formulations, such as avalehas,
asavarishtas, ointment, churnas, tablets, and pills, as well as allopathic
formulations, including tinctures and liquid extracts. The company’s products
specialize in rheumatology, gynaecology, and central nervous system. It also
manufactures bulk drugs and intermediates. The company also sells its products in
the United States, Europe, Asia, and Africa.

The Zandu Pharmaceutical Works Limited was founded in 1910 and is based in
Mumbai, India. The great success received in the first 9 years necessitated
immediate extension of the production capacity. Zandu thus went public in 1919
with the issuance of stocks. With the aid of modern equipments Zandu
manufactures a wide range of Ayurvedic products; specialised in Rheumatology,
Gynaecology and CNS (Central nervous system) etc.

Ever since its inception, Zandu has been dedicated towards the promotion of
Ayurveda and bringing the benefits of Ayurveda to the common man. Great
emphasis has been laid on the selection of the right type of raw material and
scientific methods for manufacturing herbal products.Research and Development
facilities at Zandu are comparable to worldwide standards.

Using as many as 200 medicinal plants and their extracts, Zandu produces a range
of over 300 health promoting products. In fact, Zandu products hold the key to
health and longevity. The products are manufactured at several up to date plants all
across the country.

Today, Zandu is a multi-product entity, comprising a group of companies. Zandu

projects a sale of nearly Rs. 2,000 Million.
Price details:

Particulars BSE NSE

Open 3121.00 3124.50
Day High 3228.00 3215.00
Day Low 3105.00 3100.00
Previous Close 3115.50 3109.40
52-Week high 12800.00 12798.00
52-Week low 2513.00 2525.10
P/E 10.10 10.08
Market Cap (Rs cr) 253.6 253.62
Volume 10472.00 15805.00

Performance analysis:
Pariculars
EPS 373.70
Free Float (%) 64.49
FII holding 0.11
ROCE(%) 5.41
*Face Value (in Rs): 100.00

Financial Results (Quarterly):

Particulars Mar-10 Dec-09
Sale 0 0
Other Income 35 55
Total expenses 65 8
Net Profit -26 93
Equity 806 806
Shareholding Pattern:
Particulars Dec-09 Sep-09
Indian Promoters 52.77 72.80
MFs \ UTI - -
Banks/FIs 0.09 0.09
FIIs 0.09 0.09
PCB 17.70 5.94
Indian Public 29.01 20.92
Others 0.32 0.19
No. of shares 806400 806400
Questions:

 In the graph construct a line tangent to the efficient frontier at a point

S, starting from risk free portfolio.

Efficient Frontier
50.00%

45.00%

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%

Efficient
Frontier

Security has an expected return of 35.44% and a standard deviation of 59.12%.

 What will be the expected return on your investment, if you invest half
your money in portfolio and half in risk free security?
 What is standard deviation of your portfolio?

Portfolio

Return= 35.44%

Standard deviation=59.12%

Risk free security

Return= 6.6%

Standard deviation= 0%

Weight 1=50% weight 2=50%

Expected return of the portfolio

= (50%*35.44%) + (50%*6.6%)

=21.02

364 day T-bill rate= 6.6%

Expected risk of the portfolio

=0.5*0.5*59.12%*59.12%+ 0.5*0.5*0%*0%+2(0.5*0.5*0%*59.12%*0)

=8.73%
(Since standard deviation of a risk free security is always NIL)

σp = Sqrt (VAR)

= Sqrt (8.73%)

= 29.95%

 If you borrow at T-bill rate and amount equal to your initial bill and
you invest all your funds in portfolio and pay interest on risk free
security, what will be your expected return and standard deviation?

If an investor can borrow upto 100% of his investible fund at the risk free
interest, then the total funds available with him would be 200% of his investible
funds and would be invested in portfolio S. so, the weight of portfolio S i.e. (1-
weight if risk free) is 2 and the proportion of funds, associated with Wrf, is
negative ie, -1

Therefore,

Expected return =

= -1(6.6%) + 2(35.44%)

=64.28%

And the standard deviation would be

 SDp= (1- wrf)SDs

= (1-(-1)) 59.12%.

=2(59.12%)

=118.24%

Formulae and Software used:



 σp = Sqrt (VAR)
 R= (Pe-Pb)/Pb
 (where Pb = price at the beginning and Pe= price at the end)
 Software used are excel, Microsoft word and paint.

Source of Data:

 www.google.com
 www.moneycontrol.com
 www.bseindia.com
 www.zanduayurveda.com
 www.indiabulls.com/realestate

THANK YOU