GRSE is Ramesh Damani’s biggest holding
Ramesh Damani is known to have a highly diversified portfolio of blue-chip stocks. However, because he is habituated to investing small amounts in each stock, his investments do not show up in the public domain. There are only three stocks where he holds more than 1% of the paid-up capital. These are the following:
|COMPANY||VALUE (RS Cr)||NOS OF SHARES|
|Garden Reach Shipbuilders||96.2||1,251,156|
Garden Reach Shipbuilders & Engineers Limited, alias GRSE, is the stock in which Ramesh Damani has the highest confidence and allocation. The Company is a PSU with a 74.5% holding by the Government.
The stock has rewarded Ramesh Damani well with multibagger gains of 762% in 5 years. The YoY return is also a handsome 67%. The other stocks in his portfolio are also doing well.
I saw Sensex go from 1,000 to 60,000 despite all calamities
Ramesh Damani advised that investors should never get perturbed the various happenings around us such as Wars, Floods, Droughts, Earthquakes, Pandemics, etc but should remain invested steadfast in high quality stocks.
“When I started, the index was at 1,000, and now it’s over 60,000 … In between, everything that’s known to mankind, from the Kargil War and financial crisis to global warming, has happened and yet the index finds its way higher. Investors should remain invested in “high-quality businesses” to gain from the long-term trend despite the near-term volatility in the form of inflation, geopolitical headwinds or elections“, he said in a Bloomberg interview.
“What I have learnt over the last 30 years is to remain invested in high quality businesses and not worry about the volatility that happens. That is a part of the market,” he repeated for emphasis in a CNBC TV18 interview.
“My mantra has always been same, buy a good quality business and stick to it, ride out the volatility which is almost inevitable as part of all investments,” he added.
PSU Stocks will continue to be powerhouse multibaggers
Ramesh Damani had earlier recommended that we tuck into railway stocks. This worked like a charm with stocks like Rail Vikas Nigam delivering mind-boggling multibagger gains of 320% YoY.
He confidently asserted that we should stay invested in PSU stocks because they would be the leaders of the next Bull market as well.
“I am of the firm belief that this time, the leadership is with the Public Sector stocks,” he declared.
“In a bull market leadership move, stocks tend to go up 20-30x from the lows and I think we are witnessing a similar move and I think they would really blast off in what we call the third phase of the bull market, which is after the elections are known to the market,” Damani said.
He also pointed out that while some defence and rail PSUs have reached fairly rich valuations, there are some pockets that are still available at a “fairly modest multiple and fairly good dividend yield“.
What about investing in the CPSE ETF?
Assuming one does not want to mess around with individual stocks, the best way to invest is to buy the CPSE ETF which is a collection of the best performing Navaratna PSU stocks.
Presently, the ETF has the following stocks in it.
Share Holding of the CPSE ETF
|Power Grid Corporation of India||19.74||Electric Utilities|
|Oil & Natural Gas Corporation||19.35||Oil, Gas & Fuels|
|Coal India||17.41||Oil, Gas & Fuels|
|Bharat Electronics||12.81||Aerospace & Defense|
|Oil India||2.77||Oil, Gas & Fuels|
The ETF has done very well with a return of 50% YoY which beats the Index and most PMS Funds and Mutual Funds.
What about HAL, Coal India, Engineers India?
HAL is also a sound investment alternative because luminaries like Madhu Kela and Vikas Khemani have given it a clean chit. “HAL is up 65% YoY but is still not expensive. It has a lot of room for appreciation” the luminaries said recently.
ICICI Direct has recommended a buy of Engineers India on the basis that “Engineers India is a High Conviction Buy Idea for target price of Rs 160 (25% upside): Strong growth available at attractive valuations“.
Coal India is recommended by ICICI Securities on the rationale that: Despite the impressive run-up (~37% in the past 3 months), we believe that there is still room for a 25% upside for CIL’s stock price performance.