We have to compliment CNBC TV18 and its young Turks comprising of Lata Venkatesh, Sonia Shenoy, Virender Bansal, Mangalam Maloo etc for putting the spotlight on high quality companies and preparing a Model Portfolio of ten such companies. The stocks were selected on the basis of parameters such as growth, leverage and management quality. The stocks were also screened on strict filters of growth rate, EBITDA, cash flow, balance sheet etc.
A detailed explanation of the merits of each stock was also given.
— Mangalam Maloo (@blitzkreigm) April 21, 2016
Today, seven months after the announcement of the A-List, we can see that of the ten stocks, three have given hefty returns in excess of 30%. The sole large-cap, Infosys, has given a return of 12%. This is also excellent when you bear in mind that the investment is in a blue chip and is literally risk-free. The other stocks have not lost much ground and it will take only a small uptick in the market sentiment for them to be in the green and give robust gains.
|Stock||CMP||Gains from 01.09.2015 to date (%)|
|TV Today Network||323||55|
On an average, the ten stocks have given a return of 11%. This works out to an annualized return of 18.85%.
It is notable that in the same period (1st September 2015 to date), the Nifty has given a return of only 2.5% (7,717 to 7,912). The performance of the A-List is also better than the performance of several popular mutual funds such as HDFC Top 200 (+0.7), HDFC Prudence Fund (+1.4%), Mirae Asset Emerging BlueChip Fund (+4.8), PPFAS Long Term Value (+5.9%), SBI Emerging Business (+6.4%), DSP Blackrock Micro Cap Fund (+9%), etc in the period from 1st September 2015 to date.
So, we have to accept that the performance of the Model Portfolio of A-List stocks is splendid on all parameters!