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    Joka Bulls Case

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    shivam kumar
    Harshit Sharma has been promoted to head the Asset Management division of Joka Mutual Fund, which had a disastrous performance last quarter losing 3% of its corpus. He has been given Rs. 5 Crore to invest across sectors including BFSI, FMCG, Auto, Pharma, and IT. Harshit must submit a portfolio with at least one stock from each sector and no more than 50% invested in any one stock. The portfolio will be evaluated over 5 years and updated based on news shocks provided on subsequent days, with the top 5 teams presenting their rationales.

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    Joka Bulls Case

    Uploaded by

    shivam kumar
    74 views2 pages
    Harshit Sharma has been promoted to head the Asset Management division of Joka Mutual Fund, which had a disastrous performance last quarter losing 3% of its corpus. He has been given Rs. 5 Crore to invest across sectors including BFSI, FMCG, Auto, Pharma, and IT. Harshit must submit a portfolio with at least one stock from each sector and no more than 50% invested in any one stock. The portfolio will be evaluated over 5 years and updated based on news shocks provided on subsequent days, with the top 5 teams presenting their rationales.

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    Harshit Sharma has been promoted to head the Asset Management division of Joka Mutual Fund, which had a disastrous performance last quarter losing 3% of its corpus. He has been given Rs. 5 Crore to invest across sectors including BFSI, FMCG, Auto, Pharma, and IT. Harshit must submit a portfolio with at least one stock from each sector and no more than 50% invested in any one stock. The portfolio will be evaluated over 5 years and updated based on news shocks provided on subsequent days, with the top 5 teams presenting their rationales.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    74 views2 pages

    Joka Bulls Case

    Uploaded by

    shivam kumar
    Harshit Sharma has been promoted to head the Asset Management division of Joka Mutual Fund, which had a disastrous performance last quarter losing 3% of its corpus. He has been given Rs. 5 Crore to invest across sectors including BFSI, FMCG, Auto, Pharma, and IT. Harshit must submit a portfolio with at least one stock from each sector and no more than 50% invested in any one stock. The portfolio will be evaluated over 5 years and updated based on news shocks provided on subsequent days, with the top 5 teams presenting their rationales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    JOKA BULLS – MOCK STOCK COMPETITION

    CASE
    In the summer of 2022, Harshit Sharma was still reeling from the events of the day. He was promoted
    to the head of the Asset Management division at Joka Mutual Fund. The earlier manager had tendered
    his resignation following a disastrous quarter performance, losing 3% of the corpus over 3 months. The
    division was under fire from the top management, and he had 3 days to re-balance the portfolio.

    The previous manager had attributed the lacklustre performance to volatility in the supply-side shocks
    which caused prices to drop. While it boosted consumer confidence in some sectors, the spread was
    uneven and failed to cause cheer, especially in the real estate markets. The exit of foreign investors from
    the emerging markets also caused sharped gains in some sectors to be wiped out. Quoting an
    independent financial analyst, the manager had stated, “the pendulum had swung too far above the
    fundamentals on hopes and expectations, and which are eventually getting corrected.” The new central
    government has set a goal of achieving 8% GDP growth in the coming year which appears audacious
    but achievable. However, muted export growth is an area of concern and unless India becomes more
    competitive, it would be difficult to grow exports in a world that is slowing down overall. Railways will
    have a key role to play in improving the competitiveness of the economy and hence rapid modernization
    of the Indian Railways would be key. E-commerce and modern retail will improve the competitiveness
    of the economy from a retail side, although it would have limited impact from the factors of production
    perspective such as coal and energy. Even though IT and ITES are slowing down, it continues to be one
    of the largest employers in India. The previous government also bore a very large subsidy bill, with the
    food subsidy bill being one of the largest. It would be imperative to taper off the subsidies over a period
    of time to support deeper structural reforms.

    Harshit has been provided with a corpus of Rs. 5 Crore to invest in a portfolio of mid & large-cap
    companies across sectors given below-

    BFSI - HDFC Bank, IDFC First Bank, Punjab National Bank


    FMCG - HUL, Zydus Wellness, P&G Hygiene & Healthcare
    Auto - Mahindra & Mahindra, Apollo Tyres, Hero Motocorp
    Pharma - Cipla, Glenmark, Abbott India
    IT - Infosys, KPIT Technologies, Tata Elxsi

    Investment Constraints:
    1. Portfolio Evaluation - The portfolio may be back-tested for a period of 5 years till 31st March
    2022.
    2. The portfolio needs to contain at least 1 stock/company from each industry.
    3. Investment corpus - Rs. 5 Crore
    4. Not more than 50% of any stock/company can be sold in one round.

    Submission Details:

    • Teams need to provide returns (5Y CAGR) along with selected stocks & corresponding
    weights during portfolio submission at the end of each round (30th June, 1st & 2nd July).

    • Teams are required to submit their first portfolio basis understanding from the above case on
    30th June, 2022 through the Unstop Portal.

    • News shocks/Clues will be provided for both, round 2 & 3 (1st & 2nd July) and at the end of
    each day on FinClub’s Instagram page
    (https://instagram.com/finclub_iimc?igshid=YmMyMTA2M2Y=) and the teams are required
    to restructure their portfolios & submit the same (along with updated returns) through the
    Unstop Portal.

    • Top 5 teams at the end of round 3, will be invited to present their investment rationale.

    Parameter Value (as of 31st Mar’22)

    USD/INR 75.95

    10Y Treasury Yield 6.843%

    Nifty 50 17464

    Bank Nifty 36373

    Nifty IT 36317

    Nifty Auto 10552

    Nifty FMCG 36287

    Nifty Pharma 13584

    Nifty Metal 6423

    Nifty Energy 25822

    Nifty Infra 5018

    Gold Prices 53225

    Repo Rate 4%

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