It was always known that Raamdeo Agrawal and his partner Motilal Oswal are wealthy individuals. However, the extent of their wealth and net worth was not known.
Net worth of Raamdeo Agrawal and Motilal Oswal
It has now been revealed that while Motilal Oswal’s net worth is Rs. 2,800 crore, Raamdeo Agrawal’s net worth is Rs. 2,700 crore.
The duo is collectively worth an eye-popping fortune of Rs. 5,500 crore.
This sensational revelation has been made by Hurun, an organisation devoted to researching the net worth of leading celebrities.
The net worth figures of Raamdeo Agrawal and Motilal Oswal sound astronomical but they are not unbelievable because the market capitalisation of MOFSL is itself Rs. 6800 crore. The promoters, which comprises of Raamdeo Agrawal, Motilal Oswal and their family members, control 72% of the equity.
100-Bagger gain from AU Financiers
Raamdeo recently disclosed that he has raked in a 100-bagger gain from AU Financiers, a closely held NBFC which is about to go public. A paltry investment of Rs. 50 crore in AU Financiers has become a gigantic fortune of Rs. 5000 crore in just six years. Raamdeo and his team held 30-35% stake in AU Financiers and pocketed nearly Rs. 3,000 crore.
Secret technique revealed
In the background of that spectacular success, Raamdeo generously shared with all of his devoted fans the secret technique that he implemented to net the 100-bagger gain.
Wealth Creation Studies
Raamdeo Agrawal and his ace team at MOFSL have laid bare the entire theoretical aspects of how to identify multibagger stocks in the 19th Wealth Creation Study and 20th Wealth Creation Study. Both treatises are compulsory reading material for all novice investors aspiring to snare multibagger stocks.
Stocks in blue chip companies and mutual funds
Raamdeo is known to have stocks in a number of blue chip large-cap and mid-cap stocks. Atul Auto was one of his favourite mid-cap stocks which he bought along with Vijay Kedia. However, Raamdeo appears to have got disillusioned with Atul Auto and has sold off his holding.
Maharashtra Scooters is the latest stock that has caught the fancy of Raamdeo Agrawal and Motilal Oswal.
As of 30th June 2016, Raamdeo holds 1,67,741 shares while Motilal Oswal holds 1,39,615 shares. The investment is collectively worth Rs. 45 crore at the CMP of Rs. 1480. The stock is up nearly 50% on a YoY basis and is still undervalued according to leading experts.
Raamdeo also revealed in a Forbes interview that when MOFSL set up a mutual fund, he was persuaded by Motilal Oswal to sell all of his stocks (then worth $100m) and invest the proceeds in the mutual fund. The bulk of Raamdeo’s investments are in the Focused Midcap 30 fund and the Focused Multicap 35 fund. Raamdeo has also probably invested funds in the “Value Strategy scheme”, a PMS floated by MOFSL, which is claimed to have given returns of 26 percent over the last 13 years as against the Nifty’s returns of 17 percent.
Raamdeo Agrawal revealed in a CNBC-TV18 report that he hails from a family of modest means. He lived in a village in a remote place where there were no electricity or roads.
Also, when Raamdeo teamed up with Motilal Oswal to start a brokerage, the duo had a hand-to-mouth existence. Raamdeo’s responsibility was to sit in office and take buy and sell orders from clients while Motilal’s responsibility was to go to the ring and execute the orders.
Motilal Oswal credited legends like Rakesh Jhunjhunwala, Radhakishan Damani and Manu Manek for inspiring him. They would periodically hand over stock tips and also recommend them to clients which helped the duo to stay afloat.
How the duo managed to convert such a simple set up into a gigantic conglomerate that is MOFSL today is an inspiring story of hard work, good luck and perseverance.
Struggle to finish the Chartered Accountancy course
Raamdeo also made the candid disclosure that he had to struggle hard to complete the CA course. While the course has to be completed in three years, Raamdeo took five and half years to do so.
It is interesting to recall that Sanjay Agarwal of AU Financiers (from whom Raamdeo made a 100x gain) recited a similar tale of woe of how he had also failed the CA exam multiple times.
Skill in reading balance sheets led to success
Raamdeo revealed that his mastery in reading profit & loss accounts and balance sheets gives him an edge over other investors. Raamdeo knows from one glance at the audited accounts whether the company is doing well or not and what its future prospects are likely to be.
Raamdeo also recited an interesting anecdote of how he was the only candidate to apply for the job of an equity analyst and how he went to the interview armed with a number of balance sheets and was determined to show the interviewer his skills at analysing companies.
Net Worth of Radhakishan Damani
There are a number of other luminaries from the investing fraternity who have been given pride of place in the Hurun Rich list.
Radhakishan Damani stands tall with a net worth of Rs. 7,000 crore.
It may be recalled that Radhakishan Damani had entered the Forbes Billionaire Club in 2015. However, the then prevalent bear market robbed him of the exalted position and he was dropped from the Billionaires’ club.
It is certain that Radhakishan Damani will be ceremoniously ushered back into the Forbes Billionaire Club in 2017 thanks to the bull market that we are presently witnessing.
Rakesh Jhunjhunwala Net Worth
Rakesh Jhunjhunwala’s Net Worth has been pegged by Hurun at 10,500 crore. This fits in with the estimate of $1.8 Billion made by Forbes.
Rakesh Jhunjhunwala also faced the ignominy of being downgraded by Forbes last year owing to the then prevalent bear market. He was downgraded from position no 895 to position no 1011.
It will be interesting to see what position is allocated to Rakesh Jhunjhunwala in the Forbes Billionaires List of 2017. It will be very disappointing if the Badshah does not come in the first 500 of the World’s billionaires.
Ramesh Damani Net Worth
The story of Ramesh Damani is a heart breaking one. Ramesh Damani narrated as to how he narrowly missed out on the chance to become a Forbes Billionaire owing to his reluctance to “dream big”. He was convinced about the prospects of two stocks, Bharat Electronics and United Spirits (McDowells). However, instead of buying a sizeable chunk, Ramesh Damani bought a pittance of each by force of habit even though he then had the means to buy up to 10% of the equity of both stocks.
“The inability to dream big is the biggest failing of my career” Ramesh Damani said in a rueful tone even as he underlined the need for investors to buy aggressively whenever they see a no-brainer opportunity.
Net Worth of Dolly Khanna and Vijay Kedia
Neither Dolly Khanna nor Vijay Kedia has made it to the Hurun Rich List. This is because Hurun has stipulated a stiff cut off point of Rs. 1,600 crore.
My uneducated guess that both stalwarts, Dolly Khanna and Vijay Kedia, have a net worth that is close to Rs. 500 crore. If the duo compound their wealth at a CAGR of 33% (difficult but not impossible), it will take only a couple of years for Hurun to give the duo pride of place in the exalted list of the rich and famous!