Vijay Kedia’s Latest Portfolio
First, we have to pay our customary respects to Vijay Kedia’s latest portfolio of multibagger stocks:
|No of Shares (in Lakhs)||Value Rs Crore||YoY Gain (%)|
|Sudarshan Chemical Industries||25.55||94||99|
|Panasonic Energy India Company||0.93||2||(21)|
|Simple average return||35|
As one can see, Sudarshan Chemical has retained its position as the crown prince of the portfolio though Karnataka Bank is snapping at its’ heels.
Karnataka Bank is somewhat under the weather because of the loan waiver announced in the State of Karnataka and fears that this may adversely affect the “repayment culture” of the borrowers.
However, this is likely to be a temporary event. Karnataka Bank has otherwise been certified as a “sitting duck multibagger” by leading experts.
The average YoY return of the portfolio is adversely affected by the fact that as many as four stocks refused to participate in the Bull Run and delivered either flat or negative returns.
No doubt, these stocks will either have to shape up or ship out of the portfolio.
Repro has also been a disappointment with a sub-par return of only 10%.
The stock is a high conviction bet for Vijay Kedia with a massive allocation of Rs. 34 crore. Unfortunately, its golden days look elusive.
Even the punters at MMB have lost interest in Repro, which is an ominous sign.
Nevertheless, the simple average return of 35% generated by the portfolio is quite commendable and deserves to be applauded.
(Bulls paradise – Vijay Kedia poses with the famed ‘Charging Bull’ of NYSE)
Careful in short-term, very bullish about the long-term
Vijay Kedia sent the chilling warning to his army of followers that we have to “be careful” in the current market scenario.
@VijayKedia1 Sir, what is your advice in current market scenario?
— Vikrant Kashyap (@vikrant0382) June 23, 2017
Be careful. https://t.co/6Xd2ZjZI0D
— Vijay Kedia (@VijayKedia1) June 23, 2017
However, he was dismissive about short-term concerns in his interaction with Ayesha Faridi and Nikunj Dalmia.
“The market has always been risky. We have seen it fall from 9,000 to 7,000 and that has happened twice. So, market was risky that time and market is risky now. We have seen all the ups and downs all our life. All these things do not bother me,” Kedia said with his customary wide smile.
He added that the so-called “overheated or overvalued” state of the market is a part and parcel of investing and should not bother seasoned investors.
Even stock plunges of 30-40% are not a cause for anxiety if the fundamentals of the Company are ship-shape, he said.
Vaibhav Global, Latest Multibagger stock pick
Vijay Kedia revealed that he got interested in Vaibhav Global, the e-commerce diamond company, when its stock price plunged from Rs 1,000 to Rs 250.
In hindsight, this was a sensible thing because when a stock plunges in such a savage manner, it usually recovers some of its losses.
So, if one can buy the stock at its nadir, there is a chance to effortlessly pocket a few bucks when the stock rebounds.
Reverse logic for buying Vaibhav Global
Vijay Kedia explained in a light-hearted manner that he bought Vaibhav Global on “reverse logic”.
“Usually what happens, foreigners buy Indian companies listed on American Stock Exchange. I bought a company which is doing business in America and listed on Bombay Stock Exchange. So you can understand that what do I think about this company,” Kedia said with a guffaw even as Ayesha Faridi and Nikung Dalmia burst out laughing.
On a more serious note, Vijay Kedia explained that Vaibhav Global is “learning from its mistakes” and is “on the right path”.
“Slowly and steadily, it will keep on progressing,” he assured.
Very bullish about the market as “Revolution” is happening
Vijay Kedia does not need an excuse to be bullish about stocks. He is inherently so.
“I do not know what is going to happen in next five-six months, but if you ask me for next five-six years, I am very bullish. The market should remain bullish for next five years, six years, or maybe 10 years. Revolution is happening in the market” he said, his eyes sparkling.
“As we all know, domestic money is coming like anything and India is going to become or may have become or is on the verge of becoming the world’s biggest bull market. So obviously, there are good times ahead,” he added cheerfully.