Offline PMS (TMP - The Millionaire Portfolio) - Latest Sample Report

Our key objective is to pick the right stocks at the right time by paying a fair price tobuild a balanced portfolio which will enable us to outperform the markets and achievesuperior risk adjusted returns. We aspire to generate wealth by compounding money at ahealthy rate by spotting profit making opportunities in solid companies with strongmanagement which are available at a good discount to their intrinsic value. ‘s (TMP) – An Innovative Offline PMS

From the Desk of Portfolio ManagerDear Members of The Millionaire Portfolio, There has been a spate of negative news flow over the past month on both the domestic front and also the global arena. Indian GDP data was very disappointing and rupee continues to be weak and hit new lows every day. On the global front, there has been an increasing fear of a disorderly Greek exit which might trigger a global crisis. All these have taken markets lower and there has been substantial correction in Share prices especially the Small/ Midcap companies. Does all this mean that you should exit from equity as an asset class? Sorry, No. On the contrary, Investors should be increasing their allocation to good quality companies. Stock prices are driven by Sentiments in the short-term, Liquidity in the medium term and Fundamentals in the long term. Though the magnitudes of these negative events have been bigger than any of the crisis in the contemporary period, there have been several of them over the past century. The time periods following such crisis are usually the best time for stock investors where they will be able to multiply their wealth quickly. Markets and economies are cyclical because of irrational human emotions and will continue to be so. It is important for an intelligent investor to understand this and be a strong contrarian and take well informed bets. Investors have been frustrated in the markets for a very long time and this can even continue for the next few months. But ultimately this phase is eliminating all the weak players in the same system and the strong ones who are staying on will profit tremendously. U.S Bond Market yields are at 1.87% which is equal to their stock dividends which clearly shows the kind of pessimism that has been set into the system. You can see very low interest in the markets by the market participants where volumes has gone down to 5-Yr or 7-Yr lows. Insiders and Promoters are the biggest buyers in todays market which is a clear sign of the market cheapness. When you combine this low interest with strong stock picking, it’s easily the best way to succeed in the markets. These periods also allows us to pick the right kind of stocks at valuations which are at huge discounts to their intrinsic values. Investors who are decisive and not clouded by fear and uncertainties will reap rich “ Specialists in discovering Multibagger stocks “

rewards. Markets bottom out much earlier than the real economy and hence we feel that the worst may be already priced in the market with significant probability for upsides from any small positive trigger. The more the markets are suppressed with no returns; it is only obvious that the next Bull Run is going to be very ferocious. Markets are ferocious, like in 1988 to 1992 markets went from 400 to 4000 (10X) in a few years that led to a P/E as high as 40. From 2003 lows to 2007 markets went from 3500 to around 21000 (6X). Our portfolio has very little to do with the Global economies and have no real direct business impact on a Greek exit from Europe. But, if the shares are correcting for reasons not justifiable then its good that we can accumulate more of the stocks at lower prices. Though DHFL has corrected sharply from our last addition, our views have not been changed and we are highly bullish on the prospects of the company and the stock. Similarly HSIL is also available at good valuations. We have averaged down on both of these stocks and would advise our clients with surplus cash to park in these counters to generate attractive returns in the next 2 years. Though one or two quarterly results of a company can be bad, but our portfolio companies have been solidly researched and there has been proper reasoning for adding those stocks in the portfolio. Eg: In case of HSIL and DHFL - both are market leaders in their categories and have substantial moats in their business which is helping them grow rapidly, but still undervalued because of lower investor eyeballs on them. In case of a sharp meltdown, we still have enough room to average down on our high conviction stocks. Even good companies go through these technical stock corrections but they bounce back faster and there is very little risk of these stocks staying undervalued for a long time. Our Portfolio looks good with most of the stocks in excellent financial shape and its just a matter of time before they show up in share prices.Hopefully June month will allow us to deploy our cash in even more attractive opportunities!Regards,[ Gokul Raj . P, Portfolio Manager ] “ Specialists in discovering Multibagger stocks “

Portfolio companies of TMPONLY FOR EXISTINGMEMBERS OF TMPTMP Returns = + 39.5 % Vs sensex returns = - 4 %equity exposure = 80.88% Cash Exposure = 19.12%You can look into the Outperformance in this Tough Period from comparing this returns withthat on Jan 29, 2012, “ Specialists in discovering Multibagger stocks “

TMP Performance [8-10x better than Sensex]

TMP Performance Update

Medium Term - Portfolio Guidance• Looking into PVR and Persistent Systems : Our research team has come out with good research reports on PVR Ltd and Persistent Systems and weare evaluating these suitability of these stocks to our portfolio. We would take a call after a rational riskcheck on the portfolio compared to the expected returns.• Tracking Poly Medicure : Poly Medicure has a substantial exposure in our Equity portfolio. We are tracking the performance ofthe company closely and we would be taking a decision on Holding the stock in the next few quarters. Since,the information about this company is quite low, we need to wait for the company’s annual report to take afirm decision on it.• Increase the stock exposure to Mid-Cap Gems : We have been holding a decent amount of cash in the portfolio. We are sensing interestingopportunities and hence would be deploying more cash in the markets in the medium term. We would beadding stocks, which we will be holding for at least the next 2years thereby giving stability to the portfolio. We would also like to add certain high dividend yielding stocks in order to create a regular cash flow forour investors. Balancing will also be done by adding stocks across sectors . Continuing with our bullishnesson select Mid-Cap stocks which can grow sustainably, we will increase allocation to them and therebyincrease the overall Equity Allocation % to over 85% in the next few months. “ Specialists in discovering Multibagger stocks “

TMP Connect [For new members joined TMP]New Members who has joined during last two months needto replicate TMP Connect ONLY, Since they are joining inbetween hence a replica of actual TMP is created for them.“ Specialists in discovering Multibagger stocks “

Your TMP Connect [Only buy these stocks listed below]Company Name Allocation (as a % of your total planned  Allocation % - If your portfolio size) planned portfolio size is say 10 Lacs, you will beCera Sanitary ware 6% allocating Rs50K towards ONLY FOR EXISTING Arshiya International atArshiya International Ltd 5% CMP which is 5% MEMBERS OF TMPPoly Medicure 6% allocation.Sanghvi Movers 9%  Please follow “TMP Update” which is releasedKarur Vysya Bank 8% once a month for further buying price range for allACGL 7% stocks in the portfolio.DHFL 10%  Stocks which are not thereHSIL 10% in this list, will slowly be phased out of the mainBiocon 9% portfolio. Hence, don’t buy them unless initiated.Indiabulls Financials 5%  Because of the fall inKDDL 3% markets, new membersCash 22% will be able to buy certain stocks at better prices .Total 100 % “ Specialists in discovering Multibagger stocks “

TMP Update [For existing members]“ Specialists in discovering Multibagger stocks “

Existing TMP (as on June 1, 2012)ONLY FOR EXISTINGMEMBERS OF TMP “ Specialists in discovering Multibagger stocks “

Transactions in the PortfolioONLY FOR EXISTINGMEMBERS OF TMP“ Specialists in discovering Multibagger stocks “

Reshuffled TMPONLY FOR EXISTINGMEMBERS OF TMP “ Specialists in discovering Multibagger stocks “

Summary of TMP• We have increased the stock exposure by more than 4% in this update . Going forward, we wouldgradually increase the exposure to much higher levels.• The total number of stocks is at 11. We intend to run a fairly tight and balanced portfolio. Hence, wewould not like to add new stocks without proper replacement.• During every significant fall, we shall be deploying cash pretty aggressively in fundamentally goodcompanies . We have sufficient cash to average down, if required.• Incase of opportunities where risk-reward is very attractive than any of our existing portfolio stock, wewould take a rational decision to swap the current share with the new stock. “ Specialists in discovering Multibagger stocks “

Notes/ Reasoning for Transactions in TMPAverage Down - HSIL: ONLY FOR EXISTING MEMBERS OF TMP• HSIL is a solid business which has tremendous potential for growth. Inline with our guidance for addingmore of the stock in the coming months, we have been able to add HSIL at pretty attractive levels because ofthe correction post its Quarterly results. After our Con-Call with the Management, we have a fair bit of anidea that the company will continue to do well on the topline front while the margins may pose a challenge.But anyways, HSIL has enough operating leverage to grow its bottom-line significantly in the next two years,which lead to a higher re-rating enabling us to get Multi-fold returns out of the stock.Average Down - DHFL:• DHFL has posted a good set of Quarterly earnings. The PAT has grown over 60% in the last quarterwith improvements in margins and reduction in NPA’s. We expect the company to post EPS of around 40Rs in FY-13 which leads to a valuation of less than 5X which is very attractive for the quality of its businessoperations. We don’t find any significant reason for the decline in the share price and hence believe that, thisis just a blip and investors should be using this correction to accumulate more of the stock. Institutionalinvestors investing in the stocks at 255 Rs/ Share and Promoters converting their equity at over 300 Rs/Share gives us tremendous confidence about the future of the company. This bullishness is reflected in theShare being the No:1 pick in our portfolio. “ Specialists in discovering Multibagger stocks “

Quarterly Results UpdateCompany Name Result analysis for the quarter : Q4 FY-12Dewan Housing • Dewan Housing Finance Corporation (DHFL) has reported 59.86% surge in net profit at Rs 93.76 crore for the fourth quarter ended March 31, 2012. The company had a net profit of Rs ONLY FOR EXISTINGFinance Ltd 58.65 crore in the same period in the previous fiscal. MEMBERS OF TMP • The companys total income rose to Rs 721.11 crore during the quarter as against Rs 434.63 crore in the corresponding quarter last year, up by 65.91%. • For the year ended March, 2012, the companys net profit grew by 15.57% to Rs 306.41 crore, against Rs 265.13 crore in the previous fiscal. At the same time, total income of the housing finance firm increased to Rs 2,469.68 crore in 2011-12, compared to Rs 1,451.24 crore a year ago. • During 2011-12, home loan sanctions increased to Rs 12845.30 crore as against Rs 8,949.48 crore in the previous fiscal, an increase of 43.5%. Disbursements rose to Rs 9,065.24 crore in compared to Rs 6,505.57 crore in 2010-11.Analysis :-Dewan Housing Finance has strongly corrected in the past month. Looking into the results and otherfundamental news flow, we feel the correction is not warranted and this discount on the stock will notsustain for long. This seems to be technical correction which can happen because of the large ForeignInstitutional presence in the stock. But this more of an Opportunity to accumulate the stock. “ Specialists in discovering Multibagger stocks “

Quarterly Results UpdateCompany Name Result analysis for the quarter : Q4 FY-12HSIL • The revenue zoomed 17.98% to Rs. 3912.60 millions for the quarter ended March 2012 as compared to Rs. 3316.40 millions during the corresponding quarter last year. ONLY FOR EXISTING MEMBERS OF TMP • Profit after tax improved marginally to Rs. 329.30 millions for the quarter ended March 2012 from Rs. 325.00 millions of corresponding previous quarter. • OP of the company witnessed a marginal growth to 745.80 millions from 682.00 millions in the same quarter last year.Analysis :-HSIL has performed well on a sequential basis because of the volume growth in its Building products divisionand price increase in its Container Glass business. There has been severe pressure on its margins because ofthe steep increase in Fuel & Power costs. This along with the depreciating Rupee was the reason for thecompression in Margins.But, we must remember that – Our Investment call on HSIL is because of the pricing power it commandswhich will help it to pass on the extra costs. This continues to be true and in fact, tough situations like thepresent helps us strengthen our conviction on this stock. Company takes a small lag in the Container glassdivision while immediately passes on the costs in Building Products division. This can be seen from the Priceincrease in the last 6 months on both businesses without affecting volume growth. “ Specialists in discovering Multibagger stocks “

Quarterly Results UpdateCompany Name Result analysis for the quarter : Q4 FY-12KDDL • The revenue for the March 2012 quarter is pegged at Rs. 261.30 millions, about 13.17% up against Rs. 230.90 millions recorded during the year-ago period. ONLY FOR EXISTING • The Net profit of the company remain more or less same to Rs. 15.10 millions from Rs. 20.40 MEMBERS OF TMP millions ,decline by -25.98%. • Operating Profit saw a handsome growth to 52.40 millions from 47.40 millions in the quarter ended March 2012Analysis :-Considering the tough operating conditions for small companies like KDDL, it has performed relatively wellon the topline front. But the major disappointment was on the net profit which shown a substantial decline,however we continue to look at the financials and AR and would take a rational decision on the smallallocation which we have done to the stock. “ Specialists in discovering Multibagger stocks “

Next Update - June 30, 2012 As mentioned in the previous reports, we would be giving regular update reportsat the end of each month. In addition to this, we would be buying/ selling stockswhenever there is a good opportunity and also keep you updated on the changes.We would be providing the following in the this Month end report ,•Quarterly Earnings Update of Portfolio Stocks. - Special Update on Poly Medicure – Opportunity & Risks.• News Update on the companies and also price update of stocks. “ Specialists in discovering Multibagger stocks “

Sit back and Relax while your Money works Hard for you  A Fund which is backed by the Best Equity ResearchA Fund which invests in Strong secular growthcompanies which will be HBJ Capital Ventures LLP the leaders of the Next Bull Market ! - Your Partner in Wealth Creation For additional Details, Call us - +91-9886736791

THANK YOU“ Specialists in discovering Multibagger stocks “

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Offline PMS (TMP - The Millionaire Portfolio) - Latest Sample Report

by HBJ Capital Services Pvt. Ltd on Jun 28, 2012

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