Originally posted by subash1983 Regarding 4 pharma company, actually I am planning to add 1/2 more company to it (Most likely Sun, Ipca or Piramal). I am starting to have a feeling that Indian pharma company are going to have a super boom like IT/ITes/BPO boom of India. Patents of quite a number of high selling drugs are going to expire in US in comming years, and Indian pharma comapny are best suited for ripping the benefit of the same.

Sold eClerx, and Yes Bank.

Added more Mayur Uniquoter, Page Industry, Kaveri Seeds, La Opala RG, and Alembic Pharma

Stock	Portfolio %	Overall Gain %
Mayur Uniquoter (4)	17.5	5.3
Goodyear (2)	8.5	13.5
Zylog Systems (2)	7.8	12.7
VST	5.2	50.9
Indag Rubber	5.1	18.4
Vivimed Labs	4.9	7.4
Munjal Auto Ind	4.9	8.1
Bata India	4.8	3.2
Kajaria Ceramic	4.4	7.2
Ajanta Pharma	4.4	7.6
Amara Raja Batt	4.2	18.1
Balkrishna Ind	4.0	7.9
Cravatex	3.8	6.4
Kaveri Seed Co	3.7	10.6
Setco Auto	3.5	1.0
Lupin	3.4	23.2
La Opala RG	3.4	-1.5
Alembic Pharma	3.3	1.7
Page Industries	3.2	-1.0

Originally posted by coolcarney Any particular reason for selling Yes Bank? Won't the rate cut help Yes? I am just trying to understand.

I am extremely skeptical of any and everything touched/influenced by our dear govt of India, and their pervasive policy (be it bank, infra). Basically I want to make my investment as less dependent on policy decisions by our extremely educated and still silently remote controlled PM and his folks.

Also I want my investment to be as less correlated with sensex as possible.

I also don't know how to value banking/finance stock (other than the fact that they are done via P/B ratio, but don't know how to see P/B ratio and tell how good the bank is for investing)

So I sold all my banking stocks.

So I have switched to slightly lesser known, mid/small cap companies with low/zero debt-to-equity ratio, and a consistent ROE >20 for last 3 year (and estimated ROE > 20 for coming 2 years), and PEGY ratio less than 1. As per my analysis such companies have outperformed market like anything in last 2 years (I have checked around 30-40 companies). (1 year return ~70% and 2 yr return ~150%).

I don't see such return opportunity in any banking stocks.

Originally posted by hit2710 Originally posted by subash1983 So I have switched to slightly lesser known, mid/small cap companies with low/zero debt-to-equity ratio, and a consistent ROE >20 for last 3 year (and estimated ROE > 20 for coming 2 years), and PEGY ratio less than 1. As per my analysis such companies have outperformed market like anything in last 2 years (I have checked around 30-40 companies). (1 year return ~70% and 2 yr return ~150%).I don't see such return opportunity in any banking stocks. Can you put up a list of such companies which you studied? Or any noteworthy companies which caught your eye?

									Return
Stock	ROE-10	ROE-11	ROE-12E	ROE-13E	ROE-avg	Div Yeild	PE-curr	1/PEGY	1-yr	2-yr
Indag Rubber	32	24	20	20	24.0	1.8	6.3	4.1	99	90
Mayur Uniquoter	38	41	33	28	35.0	2.0	9.2	4.0	70	199
Munjal Auto	21	25	20	20	21.5	2.8	6.5	3.7	121	145
Setco Auto	25	35	25	25	27.5	1.9	8.6	3.4	64	124
eClerx	37	51	43	34	41.3	3.0	13.7	3.2	-3	113
Zylog System	18	20	22	20	20.0	1.3	7.0	3.0	50	45
Balakrishna	32	23	24	25	26.0	0.5	10.7	2.5	97	109
Ajanta Pharma	20	25	25	24	23.5	1.0	10.0	2.5	143	170
Amar Raja Battery	33	25	25	23	26.5	1.5	13	2.2	60	84
La Opala RG	11	21	25	25	20.5	1.4	10.8	2.0	75	186
Goodyear	31	22	25	28	26.5	1.7	14.3	2.0	29	28
Kajaria	29	32	33	32	31.5	1.1	17.0	1.9	127	179
Butterfly Gandhimati	57	37	37	37	42.0	0.3	23.6	1.8	103	331
VST Industry	25	36	36	30	31.8	3.5	21.3	1.7	150	201
foseco	27	30	26	23	26.5	2.4	18.0	1.6	47	94
Nestle	96	75	47	36	63.5	1.0	42.8	1.5	23	69
DFM Foods	26	37	26	26	28.8	0.9	20.6	1.4	98	95
FAG Bearing	21	24	21	19	21.3	0.6	15.6	1.4	96	216
Kaveri Seeds	19	22	20	20	20.25	0.4	14.9	1.4	76	106
WABCO	29	33	28	24	28.5	0.3	21.1	1.4	61	134
Bata India	24	33	29	29	28.8		23.0	1.3	105	242
Page Industry	40	48	43	34	41.3		35.0	1.2	68	241
Vivimed Lab	15	18	21	21	18.8	0.5	17.5	1.1	50	161
CRISIL	39	44	40	40	40.8	1.0	40.1	1.0	67	99
Cravtex	21	27	21	21	22.5	0.6	23.3	1.0	174	598
Lupin	37	30	27	29	30.8	0.5	31.6	1.0	29	65
BOSCH	21	24	22	20	21.8	0.5	22.9	1.0	22	71
Gujrat Reclaim
Alembic Pharma
Average	30.5	31.9	28.3	26.4	29.3		18.5	2.0	77.8	155.4