Utpal Sheth met RJ in the offices of Asit Kotecha, the legendary billionaire investor. RJ was considering selling off his entire portfolio of liquor stocks because he thought they were overpriced. However, Utpal Sheth made a convincing presentation to Rakesh that the liquor stocks were cheap and would make great multibaggers in the years to come and that not only should RJ not think of selling them, instead, he should buy more of them. That convinced Rakesh and he bought large quantities of liquor stocks, all of which became multibaggers in due course of time.
Rakesh Jhunjhunwala, ever the opportunist, knew that he couldn’t afford to lose Utpal Sheth and so he did the best thing possible to “lock up” Utpal Sheth – he offered him partnership in Rare Enterprises, the billion dollar enterprise.
This was a great once-in-a-lifetime opportunity for Utpal Sheth as well because not only did he get an insight into RJ’s brilliant thought process, but he also shared in the billions that Rare Enterprises made.
Of course, Utpal Sheth has proved that he is worth his weight in gold. He is the one who spotted the early opportunity in Titan Industries, when it was languishing at Rs. 2 (after adjusting for split, bonus etc) in 2002. He advised Rakesh to buy truckloads of Titan and the rest is history because in the next few years, Titan gave him an incredible 12000% return.
Apart from Titan, Utpal Sheth has other multibaggers to his credit such as Nagarjuna Construction (NCL). However, Utpal really proved his mettle in Praj Industries. This was a stock where RJ was not at all convinced about its potential and was not keen to invest big money. However, Utpal Sheth was so convinced about Praj Industries that he literally forced RJ to invest in it. The worst thing is that while Utpal bought Praj Industries at Rs. 100, its price slumped to Rs. 75. Instead of panicking, Utpal kept his cool and bought more Praj stock. This paid off real big time because Praj Industries then spurted to an all time high of Rs. 5000 giving Rakesh his big multibagger.
So, that Utpal Sheth for you, a cool and analytical investor with an eye out for multibagger stocks and not afraid to back his convictions.