Top 20 Investors in India Share Their Philosophy

Finding Multi-baggers the Basant Maheshwari Way

Basant Maheshwari's advice to investors who want to make a debut in the stock market is to focus on zyaada, because only that can lead to wealth creation


By Aarati Krishnan | Mar 24, 2015

Most market gurus in India like to preach the virtues of patience and caution and urge investors to be happy with a 15 per cent return from equities. But not this charismatic Kolkata-based investor who has made a living out of stock market investing and has a large fan following - Basant Maheshwari.

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Finding multi-baggers in the stock market is his passion and he makes no bones about it.

'Paisa jaldi banana hai ki zyaada?' Basant asked a packed audience of 300-350 investors at a seminar conducted by the Tamilnadu Investors Association at Chennai.

His advice to investors who want to make a debut in the stock market is to focus on zyaada, because only that can lead to wealth creation.

'Most people start buying shares thinking they will make R2,000 or R5,000 a day. But that cannot change your life. What can change your life is making R2 crore or R5 crore over many years,' he says.

Getting started
Creating that kind of wealth, he qualifies, will take a lot of time and dedication. First, you cannot consider stock market investing to be a hobby. It is a full-time activity. 'Hobbies always cost you money,' he quips.

Fascinated with markets since his college days, Basant worked for six years at his family firm before becoming a full-time investor.

His second bit of advice is to invest enough money in equities to make a difference to your wealth. 'You are not poorer by 10 or 15 per cent in life. You are poorer by 10 times. So, you cannot create wealth by investing R50,000,' he says.

But he advises starting small because to really understand equity investing, you first have to lose money. He did not make money in the market for the first ten years. 'I used to buy low P/E stocks at their 52-week lows. If the price of the stock was in single digits, even better,' he laughs.

He asks investors not to look to the stock markets for regular income. 'Stocks cannot help you pay your tuition fees or electricity bills. For five years, a stock may do nothing. Then it may suddenly go up fivefold. Plus, a bank FD never falls 80 per cent in a bear market. But a stock has all the right to do so,' he says, irrespective of whether a stock is a blue chip or a tiny cap.

Basant's most successful stock picks were Pantaloon Retail, which he bought because he thought it could be India's Wal-Mart, TV18, Page Industries, Repco Home and Gruh Finance. He bought Pantaloon at R7 and the stock went up to R875, but he sold it around R280.

Finding multi-baggers
So what are his secrets to finding such multi-baggers? He outlines three clear strategies.

One, look for companies with good cash flows and secular earnings growth. Avoid cyclicals. 'What are the stocks that have made the most money in 20 years? Asian Paints, Nestle, Infosys, Marico, Dabur, Eicher Motors, Bajaj Auto,' he reels off. He points out that you will never find a Sterlite, Tata Steel or Coal India in that list. Making money from cyclical stocks needs two good decisions: an entry decision and an exit decision.

He also asks investors to avoid regulated sectors or those with government intervention. 'Take HPCL. We've kept hearing the deregulation story, but it has not made money in ten years.'

'When we invest in markets, we suddenly become patriots. We say India needs coal, so let's invest in Coal India. Or we have load-shedding in our city, so let's buy power stocks. That's the government's job, not yours,' he points out.

Highly regulated businesses don't create wealth because the government has a welfare motive. He cites the example of Coal India, which sells coal at a huge discount to global prices.

Two, really good stocks don't come cheap. Companies growing revenues and profits at an above-average rate always trade at a high P/E, at a premium to the market. He points out that L&T was never cheap. Nor was Page Industries, one of his multi-baggers. When Basant bought it during March 2009 lows, many blue chips were trading at 5-6 times earnings, but Page Industries was at a P/E of 16. He still went ahead and bought it. He feels that in sectors or businesses with strong brands and high entry barriers, high P/Es can be sustained.

As most of the money in markets is made by identifying secular trends, he also likes to bet on stocks at their 52 week highs! 'When a new trend is unfolding, stocks belonging to the sector regularly make new highs. So anything that is at a 52 week high attracts my attention,' he says.

Once you identify a trend (like software in 1994), it is best to go for the sector leaders, companies with strong cash flows and high return on equity, he recommends. 'Don't buy the poorer cousins in a sector. If you bought Infosys in the nineties you are wealthy. But if you bought Silverline or DSQ Software, you lost everything.'

His logic is that companies that generate strong cash flows can pay out higher dividends. So even if the business is dull for a while, investors receive dividends. 'Dividends are life jackets to stocks. Dividends are tax-free and they keep growing,' so they establish a floor to the stock price.

When to sell
His final piece of advice is not be in a hurry to 'book profits' as this is how people lose out on the biggest wealth creation opportunities of their lives.

He advises holding onto stocks for years as long as the company's profits are growing. It doesn't matter if it remains at a high P/E.

'If a stock you bought for R100 goes to R150, you rush to sell it. If it goes to R60, you hold on and wait for it to come back to R100. That's how you lose money. If you buy property and its value goes up, you don't sell the kitchen and say the bedroom is now free! Why are we so insecure about making money in stocks?' he jokes.

He explains that many people who have become rich through equity investing bought 15-20 stocks many years ago and just didn't sell them. Of the 15, 12 'would have become junk.' But 3 stocks would have turned out multi-baggers!

The problem with frequently 'booking profits' is that you have to keep finding new ideas to invest in. 'If you get one idea every month, there's something wrong with your strategy. Good ideas come to you occasionally, once in six months or a year.'

He rounds off his session by saying that stock market investing, unlike investing in gold or bank deposits needs knowledge. 'If you don't have a good idea about investing, just go to a mutual fund. It won't pay off like individual stocks but it will still work out better than bank deposits. Just consider the opportunity cost. Good funds have managed 22-25 per cent, which is still better than 8 per cent.'
source: valueresearchonlinedotcom

 

Rajiv Khanna

This is how Rajiv Khanna made to Forbes wealth wizards ’15! A market investor who is being closely watched by market participants is Rajiv Khanna. Khanna has identified several multi-baggers, mainly mid and small caps in the past few years and his portfolio now consists of more than 40 stocks. Who is Rajiv Khanna and how did he make it to Forbes list of wealth wizards 2015? Nimesh Shah (more) Research Analyst, CNBC-TV18 | Who is Rajiv Khanna? The 67-year old Madras IIT graduate has been identifying multi-baggers for last 15 years. He started investing after selling family's Kwality Ice Cream business to HUL in 1994. His portfolio includes more than 40 stocks. His identified multi-baggers include Hawkins Cookers , Relaxo , Liberty Shoes and Nilkamal . Khanna's Investment Mantra The investment mantra for the man is simplicity and sixth sense to identify themes among things one consumes in day-to-day life. All he considers is staying invested in good companies for a long-term. Meet Rajiv Khanna Khanna’s first job was at Jagajit Industries where he worked for 11 months.

He then switched to work as a research analyst in industrial explosives at ICI Paints from 1971-1977 and also launched pilot project with ICI Paints from 1977-1980. He then started expanding his family business in Kwality Ice Cream, South India from 1980-94 but eventually sold Kwality stocks to HUL in 1994.

He continued as minority shareholder in Kwality from 1995-2008 and started his own milk business, Sona post 2008. Sona has a topline of Rs 75 crore with 100 employees and takes up 90 percent of his time. From dairy to D-street Rajiv Khanna started investing his wife's money in stock market in 1997-98. He invested in a lot of IT companies between 1998 and 1999. He also lost a of lot of money from investing into IT companies in 2000 meltdown but made a fair comeback into equities in 2003. He made 200 times in Unitech when he sold his stake in the company.

As an academician, he studied Fiemcare balance sheet suring the time his daughter was using company’s cosmetics and bought stocks in Fiemcare, which made 10 times returns. He made early investment in the company called Carnation, now known as Zydus Wellness and bought into a lot of companies which came across in his day-to-day life. He also invested in Heritage Foods in 2009-10. His early buys were TTK Prestige , Relaxo, Liberty Shoes and bought into midcap IT companies like Nucleus Software and RS Software . He bought into Satyam at Rs 100 per share after the big crash and lost upto Rs 1 crore in Satyam after stock crashed to Rs 25 per share. THE GURU'S GURU He follows Peter Lynch and is currently reading Value Investing by James Montier.

source:
Read more at: https://www.moneycontrol.com/news/c...zards-’15_1722621.html?utm_source=ref_article

 

3 Insanely Successful Stock Market Investors in India that you need to Know.

Rakesh Jhunjhunwala
Net worth: 2.4 Billion USD
Born: 5 July, 1960 (Age 57), Mumbai India
Education: Chartered Accountant
College: University of Mumbai, The Institute of Chartered Accountants of India (ICAI)
Occupation: Owner of rare enterprises, investor, Film Producer & trader

Rakesh Jhunjhunwala, also known as, “India’s Warren Buffet” and “The Big Bull’, is one of the most renowned and successful stock market investors in India.

The son of an income tax officer, Rakesh joined the stock market after completing his degree in chartered accountant. Starting with the initial investment of only Rs 5,000, currently he is sitting on a huge networth of around Rs 15,000 crores.

Jhunjhunwala today manages the privately owned asset management firm “RARE Enterprises”. The name RARE is derived from the initials of his name and his wife’s name. That is- ‘Ra’ from his name (Rakesh) and ‘Re’ from his wife’s name (Rekha). He is also the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd.

From the very start, Rakesh Junjhunwala’s ‘risk and reward’ taking ability alongwith impressive imagination & wisdom earned him great profits.

His first ever large income was from selling 5000 shares of Tata Tea which he had previously bought for Rs. 43 per share and selling them at Rs. 143. His later career was marked by his buying of six crore shares of Titan in 2003 at an average price of around Rs 3. The stock is still in his portfolio and currently trading at Rs 530.

Rakesh jhunjhunwala follows the idealogy of Warren buffet and believes in long term investment. He strongly advocates the growth of India and it’s rising economy. Mr. Jhunjhunwala is also confident in learning from mistakes. He often says- ‘Mistakes are your learning friends. The idea is to keep these mistakes small.’

According to forbes 2016, Rakesh jhunjhunwala is India’s 53rd richest person.

Radhakishan Damani

Net worth: 7.1 Billion USD
Age: 59
Occupation: Investor, Stockbroker, Trader and the Founder & Promoter of Dmart

Radkhakishan Damani, also known as ‘Mr white and white’, because of his simple dressing- white shirt and white trousers, is an investor and owner of D-mart. He is also the mentor of billionaire investor Rakesh Jhunjhunwala. RK Damani is known for his low profile and he rarely makes appearance in public events or press conferences.

On 21st March, 2017 i.e. the listing day of Avenue supermart (parent company of D-markt), the stock price rose more than double, from the offer price of Rs 299 and ended up 116% upwards to Rs 648. In the IPO of Avenue Superpart, RK Damani made around Rs 6100 crores in just two days.

RK Damani owns 52% stake in Avenue Supermarts, and Bright Star Investments – his investment company, holds another 16% stake.

RK’s journey in Indian stock market is truly inspiring. He was not always involved in stock market. He started his career as a trader in ball bearing, with no intentions to enter the stock market. However, his future has something else reserved for him.

“RK Damani entered the market at an age of 32.”

At an age of 32, post his father’s death, RK was forced to close down his ball bearing business and had to join his brother in the stock broking business, which was inherited from their father.

RK Damani had no idea of what to do in the stock market then. His knowledge to stock market was very limited and can be considered next to zero when he entered. He made few mistakes initially by speculating the stock prices. However, he soon understood that the market is a heaven for those who wants to make great fortune in life.

As he was invloved in stock broking, he also understood that he can’t make lots of money just by watching other people invest. Finally, he started investing for the long term. Gradually, his judgement began getting right, and within the next couple of years he was standing as one of the most successful investors in the market.

RK Damani’s strategy is quite simple- Invest for long term, like 5 to 10 years. RK always sees the future prospects of the company before investing and invests only if the product has a potential far ahead in the future.

Ramesh Damani

Net worth: 800 Crores (1.24 Billion USD)
Age – 61
Education: HR College, Mumbai (Bachelor’s degree in Commerce)
California State University (Master’s Degree in Business Administration)
Occupation – Founder at Ramesh s Damani Finance Pvt Ltd

Ramesh Damani, the investment guru and one of the most successul stock market investors in India, started his jourey to riches in 1990’s, when sensex was 600 points. He holds a bachelor’s degree in commerce from HR College, Mumbai and a master’s degree in Business Administration from California State University.

Ramesh Damani works at privately owned Ramesh s Damani Finance Pvt Ltd,

The son of a successful stock investor, Ramesh Damani became a member of the Bombay Stock Exchange(BSE) in 1989. Initally, Ramesh planned his carrear as a stock broker. However, later he started enjoying picking winning stocks and switched to become a long term investor.

Ramesh Damani’s first famous investment was ‘Infosys’. Coming from a techie background in US, he knew that Infosys has great future potentials. So, when infosys became public in 1993, he invested Rs 10 lakhs in it. By 1999, this investment has given him more than 100 times return.

“I learned that just because a stock doubles, it is not a reason to sell it.”- Ramesh Damani

The investment philiosophy of Ramesh Damani is easy and simple to understand. He is a long term investor and suggests not to invest for short term gain. Further, he advises everyone to make an exit strategy clear before making investment in any stock. He further adds that the ecomomy of a market is hard to predict; however if you have researched the stock carefully, and had made a good statergy, then you can can easily make fortunes in stock market.

Source: https://www.tradebrains.in/successful-stock-market-investors-in-india-2017/

 

Neelesh Surana, Mirae Asset Global Investments



Age: 45 years
Education: B.E. and MBA
Experience: 19+ years
5-year asset weighted return: 26%
Average 5-year AUM: ..
PROFILE
Neleesh Surana's remarkable consistency in delivering outperformance across two contrasting mandates has earned him the reputation of being an astute stock picker. Both his funds— Emerging Bluechip and India Opportunities—have an enviable record of outperforming every year since their launch. Equally noteworthy is that both the funds continue to enjoy among the best risk-reward profiles in their respective categories. The exuberance around the mid-cap space has posed a challenge to managing his mid-cap fund, Emerging Bluechip, but Surana has been able to mitigate risk by focusing on the larger mid-caps. He admits that while he hasn't felt the need to dig for stocks deeper down the marketcap ladder to generate alpha, the market scenario has called for greater deliberation in existing stocks. The closure of the fund to lump sum inflows has helped navigate the tricky mid-cap terrain better, says Surana. The sharp divergence across sectors requires more in -depth understanding of individual businesses, and that is where this fund manager has proven his capabilities yet again.

Top 3 stock picks
ICICI Bank
HDFC Bank
IndusInd Bank

Top 3 sector bets
Financial services: 28.3%
Consumer cyclical: 15.4%
Basic materials: 14.6%




QUICK TAKE
Key learnings in recent years
Don't sell a good business early, avoid value traps, and focus on management quality. Getting the big picture view on scalability of good business is also important.

How to navigate the current market environment
Irrespective of the market environment, our approach remains same: Strengthen primary research. We have a team-based approach, which is focused on stock selection
through rigorous research.

Investing theme for the next 3-5 years Consumer discretionary theme, subject to reasonable valuations is an interesting space. In the near term, low inflation, interest rates, pay-commission hikes and good monsoon should help revive the demand. In the long-term, structural drivers will be linked to favourable demographics, rising per capita income and increase in urbanisation.


Source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

R. Janakiraman, Franklin Templeton Mutual Fund



Age: 45 years
Education: B.E. and PGDM
Experience: 19 years
5-year asset weighted return: 25.98%
Average 5-year AU ..

PROFILE
R. Janakiraman's heavy bias towards quality puts him at odds with the market's indifference to the same in recent months. He is firm that as a bull market matures, liquidity tends to be on the higher side, which typically leads to an undeserved re-rating of below average businesses. Maintaining the same level of outperformance throughout can tempt one to let in sub-par stock picks in the portfolio, but Janakiraman's endeavour has been to ensure that such names don't creep into his funds. His portfolios are rich with businesses with high return on capital, healthy cash flows and low capital intensity. Firms benefiting from domestic discretionary demand have also found favour.

Top 3 stock picks
Yes Bank
HDFC Bank
Finolex Cables

Top 3 sector bets
Financial services: 22.8%
Industrials: 18.8%
Consumer cyclical: 18.6%





QUICK TAKE
Key learnings in recent years
A consistent investment framework helps identify businesses that are attractive to investors on the dimensions of growth, quality and sustainability. Such a framework appears to be the most capable of delivering better risk-adjusted returns over a business cycle.

How to navigate the current market environment
The portfolio construction needs to ensure that valuation as well as quality of the portfolio businesses remains within acceptable band.

Investing theme for the next 3-5 years Benefits of the change in specialty chemicals' global cost will continue. Growth in consumer discretionary demand will help auto, home improvement/appliances and financial services sectors.

source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

Sohini Andani, SBI Mutual Fund



Age: 46 years
Education: B.Com and C.A.
Experience: 21+ years
5-year asset weighted return: 22.61%
Average 5-YEAR AUM: Rs 4,824 cr

PROFILE
A consistent performer with proven capabilities to handle two distinct mandates—SBI Bluechip and SBI Magnum Midcap—Sohini Andani admits that the speed of the market uptick surprised her. She reckons the valuation re-rating happened rapidly because of a surge in liquidity even as corporate fundamentals had not improved enough to justify these valuations. Andani has been hesitant to chase the returns by paying higher prices, which has partly contributed to the recent under-performance in her funds, relative to the market. Still, she is comfortable not participating in certain pockets in such a high momentum market, knowing it would impact her funds' near term return profile. Andani has focused on building positions in existing stocks wherever possible. The only way one can benefit from compounding is by holding on to them for long periods of time, she insists. Also, a higher fund corpus along with the prevailing market scenario has necessitated more attention to detail when picking stocks. Reversing any wrong decisions now would have a higher impact on funds' returns than when their size was smaller.

Top 3 stock picks
HDFC Bank
Larsen & Toubro
State Bank of India

Top 3 sector bets
Financial services: 32.0%
Basic materials: 13.8%
Consumer cyclical: 12.8%






QUICK TAKE
Key learnings in recent years
Portfolio performance is as much driven by stocks one does not invest in as it is by the stocks one picks. Liquidity or lack of it, can impact valuations in unanticipated ways. And, to gain from compounding, invest for the long term.

Navigating the current market
There's too much liquidity chasing stocks. Crucial to monitor liquidity, its continuation or otherwise, and factors that affect it. Focus on longterm growth visibility, capital efficiency, relative valuations.

Investing theme for the next 3-5 years Domestic manufacturing recovery and sectors influenced by the same would be interesting to watch out for. This includes industrials, construction, cement, auto and services linked to domestic manufacturing.

source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

Chirag Setalvad, HDFC Mutual Fund



Age: 43 years
Education: B.Sc. and MBA
Experience: 20+ years
5-year asset weighted return: 24.69%
Average 5-year AUM: Rs 10,,420 cr

Top 3 stock picks
Tube Investments Of India
Voltas
Balkrishna Industries

Top 3 sector bets
Consumer cyclical: 25.4%
Financial services: 18.8%
Industrials: 17.2%




QUICK TAKE
Key learnings in recent years
You get rewarded for being patient. But if valuations become too expensive, they may compromise medium-term returns. Second, avoid timing the market. Third, invest in firms capable of delivering in both strong and weak economic environments.

Navigating the current market
We are looking at sectors and firms facing temporary challenges which have brought their valu ations to sensible levels. Hope to ride volatility by investing aggressively during meaningful corrections.

Investing theme for the next 3-5 years GST can shift market share from the unorganised to the organised sector. Emphasis on infrastructure creation will also throw up opportunities.

source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

Vinit Sambre, DSP Blackrock Mutual Fund



Age: 42 years
Education: B.Com and CA
Experience: 18+ years
5-year asset weighted return: 28.51%
Average 5-year AUM: Rs 3,65 5 cr

PROFILE
Vinit Sambre's timely positioning and astute stock picking helped him make the most of the sharp rally in the small- and micro-cap space in the last few years. A high analytical rigour, patience with stocks, and the discipline to stay away from low quality ideas in pursuit of alpha resulted in a strong showing by DSP Black-Rock Micro Cap. Yet, as the market scenario changed rapidly, Sambre has had to realign his approach. With increased mone y flows, the funds portfolio ballooned as it became difficult to build higher positions in the same stocks, owing to the liquidity constraint. Sambre had to look at slightly bigger companies as opportunities dried up. Fresh inflows into the fund were also put to a halt in response to these challenges. But throughout this period, Sambre has stuck to his core principles, resisting the temptation to get into low profile businesses, while constantly evaluating his existing positions. The healthy retturn profile has taken a hit of late, but Sambre's ability to manoeuvre the portfolio through difficult times should comfort investors.

Top 3 stock picks
SRF
Manappuram Finance
Finolex Cables

Top 3 sector bets
Basic materials: 26.7%
Consumer cyclical: 26.2%
Financial services: 16.9%





QUICK TAKES
Key learnings in recent years
Money making appears an easy game in a bull market, and risks appear low. But such an environment is most conducive for committing mistakes, unless proper discipline is maintained.


Navigating the current market
We are trying to drown out the market noise and stick to our core approach of looking at fundamentally strong companies with potential to create value over the longer term.

Investing theme for the next 3-5 years Implementation of GST would be quite transformational for the country with far reaching implication for many businesses. Consumer-oriented firms in the organised sector should do well in the next 3-5 years. Also, given the decimation the pharma companies have seen, value has started emerging here and the sector should generate wealth over 3-5 years.

source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

Ajay Garg, Aditya Birla Sun Life Mutual Fund



Age: 47 years
Education: B.E. and MBA
Experience: 24 years
5-year asset weighted return: 22.03%
Average 5-year AUM:Rs 2,155 cr

PROFILE
Ajay Garg continues to deliver high alpha at substantially lower risk than many peers. He focuses on company fundamentals in a comprehensive bottom-up research. While the market can behave erratically for short stretches of time, it usually aligns with firms' performance over the long term, he argues. What is evident across Garg's funds is his penchant for taking large positions in his top bets, indicating a willing ness to back conviction with meaningful exposure. He prefers not to be tied down to the bench mark index. He insists that investing approach needs to be fluid as what worked for the past 10 years cannot work for the next decade.

Top 3 stock picks
Sundaram Clayton
Honeywell Automation India
Gillette India


Top 3 sector bets
Consumer cyclical: 27.7%
Financial services: 20.6%
Basic materials: 12.2%



QUICK TAKE
Key learnings in recent years
Global macro environment and its outcomes are difficult to predict. Power shift is happening from producer-driven economies to consumer-driven economies while good promoter driven companies are transitioning into professional-driven companies.

Navigating the current market
We will continue to pick companies with strong managements in great businesses. We prefer to buy companies with consistency in earnings and hold stocks for a longer term. While investing we try to avoid companies that have excessive business uncertainty.

Investing themes for the next 3-5 years We are focusing on solution-oriented companies which have the requisite experience to launch the right product at the right time. We feel cheaper energy costs—solar power—travel and tourism because of government initiatives like Incredible India, Swachh Bharat Abhiyan, etc., women-oriented products—scooters, hygiene products, etc.—media companies—higher ad spends supported by formalisation of the economy—automation, etc. could be worthy investments for the next 3-5 years.

source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

S. Krishnakumar, Sundaram Mutual Fund



Age: 50 years
Education: B.E. and PGDBA
Experience: 24+ years
5-year asset weighted return: 25.57%
Average 5-year AUM: Rs 5,075 cr

PROFILE
S. Krishnakumar firmly believes that style integrity is critical for a fund manager. He points out that while companies with significant balance sheet issues have been clearly left behind, businesses with sustainable models and clean balance sheets with visible growth drivers have continued to appreciate in value. To this effect, Krishnakumar has chosen to stay away from capital guzzling businesses while those with efficient capital allocation practices feature prominently in his funds. Also, while he is comfortable straying from the underlying benchmark index to pick stocks with better earnings profile, he has kept the exposure in his top bets moderate to contain the downside risk inherent to the mid-cap space.

Top 3 stock picks
Bajaj Finserv
UPL
Ramco Cements

Top 3 sector bets
Financial services: 25.0%
Consumer cyclical: 18.9%
Basic materials: 18.9%



QUICK TAKE
Key learnings in recent years
Stick with quality companies with visible growth, clean balance sheets and sustainable competitive advantages.

Navigating the current market
One should not get carried away by outperformance of certain poor quality businesses, even though there could be performance pressure, as it could prove detrimental when the tide turns. Disciplined investing is bound to prov ide adequate and good returns.

Investing themes for the next 3-5 years Rising agricultural incomes and improved rural prosperity is a key theme. Growth driver in many consumer products could shift to the rural side. Electric vehicles and surrounding eco system is another disruptive theme.


source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

Pankaj Tibrewal, Kotak Mutual Fund



Age: 38 years
Education: B.Com (H) and MBA
Experience: 10+ years
5-year asset weighted return: 24.89%
Average 5-year AUM: Rs 910 cr

PROFILE
Even as the market strayed into high beta and low PE businesses over the past few months, Tibrewal has refused to dilute the strict emphasis on quality in his portfolio. Companies showing an ability to scale up, while maintaining sound capital allocation policies remain the bedrock of his approach. Given the risk-reward scenario, the focus around finding new stocks has shifted somewhat to gauging the downside possibility rather than stresing on the upside potential. Tibrewal argues that in the event of an earnings disappointment in a quality business, the possibility of a time correction in its share price is much higher than a sharp correction. While being very selective in the non-banking financial companies' segment, where valuations have soared, he has chosen to stay put in pockets where valuations seem rich but are backed by a steady earnings growth. Tibrewal has also selectively opted for strong franchises which have not seen their share price budge much, and where he reckons an earnings surprise can lead to a sharp rebound. He has made a conscious effort at diversifying the fund portfolios to avoid taking a big hit on account of a few bad apples.

Top 3 stock picks
IndusInd Bank
Schaeffler India
Apollo Hospitals Enterprise

Top 3 sector bets
Financial services: 23.0%
Industrials: 20.0%
Consumer cyclical: 18.2%



QUICK TAKE
Key learnings in recent years
Stick to quality companies across cycles. Minimise mistakes and reducing downside. Stay focused on good companies.

Navigating the current market
Disciplined investment approach. Investing in quality, capital-efficient and scalable businesses offering sustainable growth, run by passionate people and available at a reasonable price.

Investing themes for the next 3-5 years Consumer discretionary: GDP per capita at $1,800+ is at inflexion point, post which many consumer discretionary items should accelerate 2-5 times. Financial services: GDP to double in the next 7-8 years. Will boost private sector banks, insurance firms, etc. Cement: Producers to benefit from better pricing power.


source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

Mrinal Singh, ICICI Prudential Mutual Fund



Age: 38 years
Education: B.E. and PGDM
Experience: 14 years
5-year asset weighted return: 22.38%
Average 5-year AUM: Rs 8,877 cr

PROFILE
For a fund manager with valueorientation at the core of his investment philosophy, Mrinal Singh has had to dig deep to manoeuvre his portfolio in this frothy market. But he has stuck to his guns, waiting for the right opportunities to emerge and has not given into the pressure of deploying the money flowing into his funds. Having started off by building positions in the tech space, where the risk-reward appeared more favourable, Singh later waded into the beaten-down pharma sector where he felt the market had over-reacted to some setbacks. Value investing in a heady market brings with it bouts of underperformance, but Singh can be trusted to adapt without having to dilute his unique style.

Top 3 stock picks
HDFC Bank
Larsen & Toubro
Wipro

Top 3 sector bets
Financial services: 22.9%
Industrials: 19.2%
Technology: 17.2%



QUICK TAKE
Key learnings in recent years
Communicating the investment philosophy to the investors regularly, so they understand what value investing is. Be patient with one's investment, which can be unnerving at times.

Navigating the current market
As a value investor, the best way to navigate a market is by investing in companies which offer relatively high margin of safety and keeping away from value traps
Investing themes for the next 3-5 years Value investing is one theme we believe can play out for a patient investor over the next five years. When it comes to sectors, we are overweight on information technology (IT). Select companies are likely to benefit from the ongoing digital disruption in IT.

source : https://economictimes.indiatimes.co...wealth-for-investors/articleshow/60231922.cms

 

Thank you @RAMA MURTHY SASTRY CHALLA ji for these posts. Very Helpful

 

Rakesh Jhunjhunwala made Rs 900 crore in 1 day on 1 share; still wants more

Rakesh Jhunjhunwala’s favourite scrip has made him richer by more than Rs 875 crore in a single trading session, after Titan shares surged yesterday on the back of stellar Q2 results.





Rakesh Jhunjhunwala’s favourite scrip has made him richer by more than Rs 875 crore in a single trading session, after Titan shares surged yesterday on the back of stellar Q2 results. The ace investor holds more than 8.02% stake in the company as at the end of September quarter, translating to 715,86,220 shares, data filed with BSE showed. The scrip closed at Rs 657.4 on Friday, and surged to a 52-week high of Rs 824.65 before finally ending at Rs 780.3 on NSE on Monday. It is to be noted that Rakesh Jhunjhunwala would have to actually sell his positions to realize the profits. Valued at closing price on NSE, his stake in the company translated to a little above Rs 5,500 crore. Just last month, Rakesh Jhunjhunwala had revealed in an interview to ET Now that Titan is his favourite stock.

Track live stock price: Titan Company Ltd

Titan Company Ltd had reported a whopping 67% rise in net profit to Rs 277.93 crore for the quarter ended September 30, 2017 against Rs 165.98 crore in the corresponding quarter last year. Jewellery segment, which contributed to nearly 80% of total revenue, has registered a solid 37% growth at Rs 2,748.20 crore on year-on-year basis, with its EBIT (earnings before interest and tax) growing 66.4% YoY. Despite such stellar numbers, Rakesh Jhunjhunwala quizzed the Titan Company management on an earnings call on Friday.

In the earnings call, the investing icon asked, “Last year we saw a disturbed November and December and I understand you can’t forecast but there are many weddings in November and December — so would it be right to say that your sales in November and December growth should be much better as compared to September-October?”

The management responded, “Last year the entire festive season was in October. This year it got split between Q2 and Q3. There was 55% growth in that season – the base difference was high up to November 8. The base effect was high up to 8 November. After that, there was a trough and we got pulled back with our own exchange schemes.” Rakesh Jhunjhunwala also sought clarification on the wedding season in November and December, and whether it could lead to higher growth in the coming quarter.

“Last year we didn’t have rich wedding season and nor did we have a focus on the wedding as we have today,” said Rakesh Jhunjhunwala. The management replied, “There was intense pressure from the government on the PMLA re-introduction. We don’t know how that is going to go and at what level they are going to cut it from Rs 50,000 and take it up to what level.” The government had earlier said in a notification that the provisions of the Prevention of Money-laundering Act (PMLA), will apply to the gem & jewellery sector with immediate effect.

“Jewellery business was impacted by the new PMLA regulations at the beginning of the quarter but the roll back, just before the festive season provided a boost to the business,” Bhaskar Bhat, Managing Director of Titan Company Ltd said on Friday. In the same concall, Rakesh Jhunjhunwala also asked the management how many shops Titan could open in the next 6 months. Titan’s management said, “We had a 180 store month target, my assessment is by the time March 31st happens we could achieve 80% of that target.”

source : https://www.financialexpress.com/ma...-in-1-day-on-1-share-still-wants-more/922535/

 

Just 29, this Kanpur-based trader is making a killing on D-St; and how!




Ekansh Mittal

29-year-old Kanpur-based trader, is making a killing on Dalal Street as some of the shares he holds have surged up to 1,700 per cent in last six years.

Ekansh has a knack for spotting potential multibaggers in smallcap and midcap segments. He picks easy-to-understand businesses and those which have the ability to generate high returns on capital employed (RoCE) because of their inherent sustainable competitive advantage. Currently, his portfolio includes stocks such as Cera Sanitaryware, Acrysil and VST Tillers among others.




The investing story so far

Ekansh spotted Cera Sanitaryware, Wim Plast and Acrysil in 2011, and they have delivered 1,700 per cent, 1,400 per cent and 500 per cent returns, respectively, till now. And he is still holding these stocks.

In 2012, Ekansh bought VST Tillers Tractors, which has delivered 400 per cent return till date. He also bought Amara Raja Batteries at Rs 100 in 2012. The stock is currently trading near Rs 930. He does not hold this stock any more.

In 2013, Ekansh picked Can Fin Homes and Symphony and they have delivered him 1,500 per cent and 600 per cent returns till date. He bought Can Fin Homes at Rs 165 and Symphony at Rs 205. On May 12, 2017, Can Fin Homes was trading at Rs 2,661 and Symphony at Rs 1,460, indicating a return of 1,500 per cent and 600 per cent, respectively, in three years.

In 2016, he bought Prima Plastics which has delivered him over 200 per cent return so far. Two other stocks, Pokarna and DFM Foods (bought in 2015), have delivered up to 200 per cent returns too.

Where he failed

It has not been a winning trip all the way. And Ekansh doesn’t shy away from talking about the bets that have gone wrong.

He told ETMarkets.com that IPCA Labs and Eros International were two picks on which he lost some money. In IPCA Labs, he failed to understand the gravity of the USFDA-related issues and believed the issues would get resolved early, but the company is taking too long to recover. In the case of Eros International, he was not sure of its accounting policies.


Besides error of commission, there have been errors of omission as well. Ekansh says he missed out on investing in Ajanta Pharma , Caplin Point , Astral Poly Technik and La Opala RGdespite realising their potential early.



Stock-picking strategy

Ekansh prefers stocks that can grow earnings at a rapid pace without requiring access to outside capital markets and have a long runway ahead in terms of expanding market demand and/or shifting from the unorganised to the organised segment.

He keeps an eye on the management prior to selecting a stock and goes for companies which are run by able, honest and owner-managers with interests directly aligned with minority shareholders and can be purchased at valuations where the growth component of the value equation comes free.


As for stock picking, once a stock has been screened on the basis of financial performance, “We compare it to peers to get an overview of the overall industry and understand industry dynamics in more detail. Lastly, we try and reach out to the management through one-on-one meetings, AGMs or through conference calls but the focus is not to get future guidance but to improve our overall understanding of the business and the various variables involved,” he said.

From student to entrepreneur

It was around November 2008 when Ekansh opened his demat account and started investing in equities directly from his pocket money. He was a third-year student of B Tech at that time in Noida. Since, he has become a Sebi-registered analyst and has been running his equity research firm Katalyst Wealth since 2011.

On his research firm, Ekansh said: “When I started Katalyst Wealth, there were not many long-term investment-orient ed research outfits. Brokerages want you to buy and sell at regular intervals as they earn their commissions from trades, while real wealth is created over longer term through steady compounding and through reduction in expenses and taxes and that’s how I wanted my clients to build their wealth.”

He was featured in Forbes India in 2015.

Who does he follow

Ekansh likes to read and hear interviews of market legends such as Raamdeo Agrawal, Howard Marks, Sanjay Bakshi and Vijay Kedia.

“These are all giants of the investing field and there’s so much to learn from their experiences, both good and bad,” he said.

Source :
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hello sir,
thanks for posting such wonderful information. All the above investors are hardworking. keep up the good work.