Latest Portfolio of Vijay Kedia shows slant towards Tech stocks
A meticulous study of Vijay Kedia‘s latest portfolio reveals that he is slanting more towards technology stocks.
In fact, Vaibhav Global, a tech stock, has usurped the title of crown jewel from the incumbent Sudarshan Chemical.
Vaibhav Global has raced to the top with an impressive valuation of 116 crore while Sudarshan Chemical is a distant second place with a valuation of only 59 crore.
Repro India, which is fondly described by Vijay Kedia as a “disruptor” stock, is at third place with a valuation of 36 crore.
Cera Sanitaryware, which is also an old favourite, is at fourth place with a valuation of Rs. 34 crore.
It is notable that Cera Sanitaryware is also a hot favourite of Guy Spier, the expert on value investing.
Cera has a stranglehold over the sanitary-ware market and Guy has given cogent reasons why the stock is likely to sparkle soon (see Value Investor Guy Spier Buys Fav Multibagger Stock Of Dolly Khanna, Vijay Kedia & Nalanda).
In his latest interview, Vijay Kedia confirmed that Cera Sanitaryware is likely to go places.
“Cera plays a dominant role not only in the sanitary sector but also in the housing sector as a whole. But it is only a midcap. So, the idea is to find a small cap which can transform into a midcap and a midcap which can transform into a large cap. It might take 10 years or 15 years. This is the job of an investor in the market,” he said.
| Stock | Nos of shares | CMP (Rs) | Portfolio Value (Rs Cr) |
| Vaibhav Global | 700000 | 1662.85 | 116 |
| Sudarshan Chemical | 1303864 | 450.05 | 59 |
| Repro India | 901491 | 397.80 | 36 |
| Cera Sanitaryware | 140000 | 2451.70 | 34 |
| Neuland Lab | 250000 | 990.30 | 25 |
| Astec Life | 200000 | 1228.05 | 25 |
| Everest Industries | 615924 | 221.45 | 14 |
| Ramco Systems | 339843 | 273.60 | 9 |
| Lykis | 4310984 | 20.80 | 9 |
| Tejas Networks | 1400000 | 61.35 | 9 |
| Cheviot Co | 100740 | 720.45 | 7 |
| Atul Auto | 321512 | 179.15 | 6 |
| Innovators Facade | 2010632 | 21.00 | 4 |
| Affordable Robotic | 1072000 | 38.65 | 4 |
| Panasonic Energy | 93004 | 197.40 | 2 |
| Total worth of Portfolio | 359 | ||
I have upgraded, my current theme is technology
Vijay Kedia confirmed the hypothesis that he is slanting towards tech stocks.
“Currently I am focussing on PC & DC, Pre Corona and During Corona and post corona. I do not know when this post corona phase will begin but as of now, I am focussing on this theme and certainly the technology is where I am focussing that is why I reshuffled my portfolio. My current theme is technology, digital technology, new age technology,” he said.
Zee Entertainment, the King, is back
During the depths of the CoronaVirus crisis in April 2020, Vijay Kedia had boldly recommended that we buy ZEEL with the confident assurance that it will do well (see Vijay Kedia, Sandip Sabharwal & Other Top Experts Recommend 10 Top-Quality Portfolio Stocks).
The recommendation was brilliant because ZEEL is now surging like a rocket and has given gain of 70% over the past 5 months.
Vijay Kedia confirmed that he is still bullish about the stock despite the surge in price.
“I am still invested in Zee. On the contrary, I have bought more, the king is back,” he declared with a big smile on his face.
ZEEL’s prospects are also vindicated because Manish Chokhani, the noted stock wizard, has bought a big chunk of the stock a few days ago.
Zee Entertainment
Mr. Manish Chokhani, Independent Director, Zee Entertainment buys 100k shrs on 19th Aug 2020 – Exchange Disclosure today@CNBC_Awaaz@chokhani_manish @shail_bhatnagarhttps://t.co/j0Dlyjz4Nn
— Yatin Mota (@YatinMota) August 21, 2020
In fact, Manish Chokhani had earlier candidly advised us that there is a “travesty” in the valuation of ZEEL and other media stocks and that we should grab them aggressively (see There Is Travesty In Valuation Of Some Stocks. We Have To Buy Them ASAP).
No doubt, we should have obediently followed the advice.
Three new tech stocks added to the portfolio
Oracle Financial was in the news a few days ago because PPFAS Mutual Fund added it to their portfolio (see PPFAS Mutual Fund Adds MNC Stock + High Dividend Yield FMCG Stock + One Other High-Quality Stock To Portfolio).
The mandarins at PPFAS are supposed to be sticklers when it comes to value investing and so their purchase of Oracle implies that the stock is cheaply valued in comparison to its growth prospects.
Vijay Kedia confirmed that this thinking is correct.
“I have invested in Oracle Financial for the simple matter that they are into Cloud and I think Cloud is the new FMCG. This entire technology sector to me sounds like a consumer thing. Every company sooner or later in the next five years has to go digital and Cloud is the game,” he said.
He also disclosed that he has bought chunks of Ramco Systems and Tejas Networks, both of which are powerhouse small-cap stocks in the technology space.
Ramco Systems is a hot favourite of HDFC Mutual Fund and they are adding to their holdings in an aggressive manner.
A good part of their business comes from Aviation industry which is in the doldrums this year. Be careful. https://t.co/ZAcTJYKl2U
— Vijay Kedia (@VijayKedia1) June 11, 2020
HDFC MF added 1.57 lakh shares of Ramco Systems, at ₹240 per share.
HDFC MF holds 24.9 lakh shares as of June 2020@VijayKedia1 holds 3.39 lakh shares as of June 2020#MVP_BulkDeals pic.twitter.com/l8tS6yLUWB
— MY VΛLUΞ PICKS (@myvaluepicks) August 26, 2020
Tejas Networks appears to a beneficiary of 5G Technology, optical transmission, etc.
Sanjay Nayak of Tejas Networks says the co should see international biz contribute 50% of revenues by 2021#OnCNBCTV18 pic.twitter.com/Ig3gIFUEhW
— CNBC-TV18 (@CNBCTV18Live) December 2, 2019
Tejas Networks signs pact with Bharat Electronicshttps://t.co/5huZATRoWP
This should promote indigenous develop of telecom products in optical transmission, access and data-switching products for turn-key projects.
All the best @cmdbel and @TejasN_Official— Ajay Kumar (@drajaykumar_ias) November 28, 2019
I made mistakes with junk stocks, got punished, and dumped them
Vijay Kedia candidly admitted that he had made mistakes in his stock selection.
“I have sold many shares. Whatever mistake I did in the past I have tried to rectify. I sold JNC Projects and some Everest Industries along with some small caps. I did a lot of what we call grand masti. I bought Camlin at 100 PE and I got punished. I sold all those shares and some more I do not remember,” he said with a wry smile.
Surprisingly, even a blue-chip like Bajaj Auto got dumped.
“Bajaj Auto I have sold though it is one of the best companies in India, I thought that maybe it would not multiply. My job is to look for the companies which are not only good but which can rise faster than others so that is why I sold off my Bajaj Auto,” he disclosed.
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