The Smallcap Czar- Porinju Veliyath Success Story

The Smallcap Czar- Porinju Veliyath Success Story [& More…]

Porinju Veliyath Success Story:

Porinju Veliyath comes from Kerala from a very humble family background. His story is really captivating, he started his career in Mumbai as a floor trader with Kotak securities in 1990, later he joined Parag Parikh securities as a research analyst and worked as a fund manager till 1999. Here he learned the skill of buying and selling of stocks. Then he shifted back to Kochi and founded his own ‘Equity Intelligence’, a portfolio management service.

He is a small-cap value investor. Porinju Veliyath has identified several multi-bagger stocks early in his career such as Shreyas Shipping, Kitex Garments, KRBL etc. He is reported to have made crores for himself and his clients in multi-bagger deals.

In one interview with ET he said:

Equity investment is not a hectic activity if someone makes it that way, they will underperform. This is something we have to keep simple. Too much information/noise is not good, it takes away a lot of spirit of living”,

and that is why he prefers to come to his farmhouse often where he was actually born. In a calm situation, he’s able to analyze more effectively.

Equity Intelligence is a SEBI registered portfolio manager which was incorporated in the year 2002. The Fund has three key personnel, namely, Porinju Veliyath, the fund manager, Abhilash Varghese, the Director of Operations and Miriam Philip, the relationship manager.

In an interview with ET, Veliyath claimed his investment portfolio has generated 33 percent average compounded returns every year since 2003.

Indeed he is a master of choosing a right stock, here is the portfolio and shareholding of Equity Intelligence, the main fascinating thing about his portfolio is the YoY(year on year) gain

Stock CMP (Rs) YoY Gain
Lakshmi Vilas Bank 161 81
TCI 200 50
Hindustan Sanitaryware (HSIL) 324 24
Jubilant Life Science 706 90
Jubilant Industries 315 95
BBTC (Bombay Burmah Trading Corp) 716 102
Tata Global Beverages 143 31
Future Consumer 28 32
Bengal & Assam 1306 202
Vindhya Telelink 643 5
Emkay Global 74 38
Talwalkars 228 12

 

Nevertheless,  he is not correct all the time, for example in the case of Selan Exploration which has yielded a negative return over three years. He said that “We cannot go and casually buy any stock in any industry. One has to be really choosy in picking stocks and that is required every time, anytime,”

As of Feb’17, they are worth of Rs. 742.92 crores. He has also written one insightful book ‘Ohariyiloode Engane Nettam Koyyam’ (Complete step-by-step guide to share market and investing) in 2008 by Dhanam Publications.

Apart from stocks, he loves nature and he has a huge farmhouse in his hometown. Porinju Veliyath is an organic farmer and his farm is spread over acres. There is a plenty of water and thus he has a huge pond, the source of water is natural as spring water runs through it. As the land is very fertile, he grows chikku, mangoes and a number of other vegetables. A lot of birds and animals are there.

He is quite active on twitter and has a huge fan following, there is no doubt that he is a mastermind as it is evident from his recent tweet “Select Indian equities could be the second best hedge against domestic inflation, global slowdown, negative rates and deflation, fanaticism/terrorism!”. Some of us might understand this, some might not. But the truth is everyone in the market wants to lose small, whereas he wants to win big!

Also read: Rakesh Jhunjhunwala Success Story- Rs 5,000 to Rs 19,000 Crores!!

Dolly Khanna Success Story

Invest Like a Legend: Dolly Khanna Success Story [Portfolio, Bio & More…]

Dolly Khanna Success Story:

Every market produces players- those who churn one multi-baggers after another. Dolly Khanna, although the name may not be quite well known as of Rakesh Jhunjhunwala, but she is doing quite well off.  Her portfolio was quite a mystery for a long time! She has not been interviewed or known before until she bought 1% stake in a company and Indian law makes it compulsory to disclose it to the exchange. Her stake is more than 1% of 14 listed companies now.

Dolly Khanna, the name we hear along with Rajiv Khanna. The couple is based on Chennai. Rajiv Khanna has graduated as a chemical engineer from prestigious IIT Madras. During their initial days, they raised capital from the sale of family business named ‘Kwality Milk foods’ to Hindustan Unilever in 1995. Since then the golden couple has not looked back. She is into the stock market since 1996 and her portfolio is managed by her husband Rajiv Khanna. Rajiv Khanna is widely known as a brain behind Dolly Khanna’s holdings in the equity market. Her holdings range from the plastic company to the pressure cooker manufacturer.

What makes it interesting is that her stock picks perpetually becomes mega multi-baggers. The couple is quite accurate and expert in picking small potential businesses. Khanna’s are named among the top individual players of the Dalal Street. In 2014, she picked up Nilkamal (India’s top manufacturer of Home and office furniture), the stock which surprisingly has gone up 900% (from Rs 197.30 on March’14 to Rs 1966 as of March’17) in past 3 years, nearly 10 times.

Their first multi-bagger in their portfolio was Hawkins Cookers. They kept buying stocks till June’09 at the price of 130-140. Today is stock is worth Rs 3400 and also the company has given 70% of its profit as dividends.

Avanti Feeds, Nilkamal, Rain Industry, Emkay Global, NOCIL, PPAP Auto, Sterling Tools, Thirumalai Chemicals, Asian Granito are the few examples of her stocks that went to become multi-baggers once she added them to her portfolio.

Here is the partial portfolio of Dolly Khanna as of December 2017.

Stock Name CMP (Rs) % Change P/E Ratio Nos of shares Value of portfolio % of Portfolio
Rain Industries 386.3 -1.15 19.09 86,30,115 ₹ 3,33,38,13,425 38.77%
Manappuram Finance 104.85 -2.74 12.83 95,29,586 ₹ 99,91,77,092 11.62%
NOCIL 203.1 0.4 48.09 32,16,039 ₹ 65,31,77,521 7.60%
Thirumalai Chemicals 1910 2.37 13.12 1,67,221 ₹ 31,93,92,110 3.71%
Srikalahasthi Pipes 337.9 -1.72 9.33 6,36,923 ₹ 21,52,16,282 2.50%

(Source: Rakesh-Jhunjhunwala.in)

Rain Industry is the prime target of her investment followed by Manappuram Finance, NOCIL, Thirumalai Chemicals and many more. Her another interesting investment is in Trident where she holds 1.03% of the stake as of Dec’16. Since her investment, the price has risen up to  82.25 as of March’17 form 57.55 on Dec’16, giving 42.92% return, She recently bought a lot of shares of  Butterfly Gandhimathi, which is also favorite of Ashish Kacholia. But her main target is Rain Industries where she bought 1.27% of the equity in June’17 and increased it up to 2.57% of equity until December’17.

Nevertheless, if the couple sells some stock, then it doesn’t always mean that they have lost their confidence in the company. It’s just that they might have found something else that’s worth more investing. Avanti Feeds is such example where she sold many of them even at low price and price went even high after the sell-off. Though Avanti had given her a fair amount of gain even at that stage.

The above stocks (along with some others) make up around INR 1 billion. as a net worth. Also, there are few stocks which are not yet disclosed to stock exchange as they are below the statutory limit for reporting. So, the aggregate will definitely roar above INR 1 billion!

During a seminar, Rajiv Khanna said,

“Investors have to move beyond value investing and look at growth stocks if they want to find multi-baggers for their portfolio.”

Generally, the couple is a believer in long-term investment, but sometimes they also sell off the stock if it’s giving them a pretty sum of returns at that stage. Rajiv Khanna says that he relies on public information to make his investment, unlike some market analyst who bothers themselves talking to management of companies.

So how do they decide? Here are his words :

“Like in tennis you play different games on different courts – hard court, clay court and lawn, we also study the market situation and pick our stocks accordingly. It can be either a value stock, growth stock, momentum stock or buying based on technicals”

Also read: D-Mart Founder- RK Damani Success Story [Bio, Facts, Net worth & More]

Vijay Kedia’s Success Story

Ace Stock Investor- Vijay Kedia’s Success Story

Vijay Kedia’s Success Story:

“One must understand that stock market is a “high risk- high gain” business. It is a full-time business which has its own rules which need to be strictly followed. One has to fall in love with the market. The market rewards you as per your perception of it. If you treat it as a gambling den, it will prove a gamble for you.” -Vijay Kedia

Vijay Kedia is one of the most successful stock investors of the present time. His stock market journey is inspiring for many old and new investors.

Today, let’s re-visit his journey to learn how Vijay Kedia became one of the most triumphant stock investors of India.

Introduction

Vijay Kedia is an ace Indian stock investor based in Mumbai. He is the managing director of ‘Kedia Securities Pvt Ltd’ and his net worth is over 1,000 crores.

Mr. Kedia is involved in the stock market since an age of 19. He is also described as ‘market master’ by economic times.

Background

Vijay Kedia was born in a Marwari family of stockbrokers. His family has a background in the stock market for over decades.

He joined the family business of stock broking at an age of 19 after the death of his father. Since that early age, Vijay Kedia started working as a stockbroker. Nevertheless, just after few years of working in his family business, he left stockbroking to start his trading career.

During his initial days of trading, Vijay Kedia made a number of profitable trades from the market. However, he soon realized that even after making frequent profits, few big losses easily destroyed all his profits. Overall, he wasn’t earning much from his trading.

Therefore he started learning fundamental investment to start investing in the stock market instead of just trading. In the meanwhile, he also moved to Mumbai from Kolkata.

Investing Career

While in Kolkata, Vijay Kedia identified ‘Punjab Tractor’ at Rs 50 which multiplied 10 times in next 3 years. But his investment base was very low in that stock.

In 1992-93, he picked ACC at Rs 300 and sold at around Rs 3,000 within a year and a half. He bought his first house in Mumbai using that money. That gave a lot of encouragement to Vijay Kedia.

During 2004-05, he picked a number of multi-bagger stocks which gave him a return of over 1,000% in the next 10-12 years. Few of the stocks were Atul Auto, Aegis Logistics, and Cera sanitary ware.

For Aegis Logistics, he picked that stock at Rs 20 and bought 5% stake in the company for the very first time in his career. The share did not move much for next one year. However, the market realized the stock’s potential later and the share moved to Rs 300 in no time, giving Vijay Kedia a return of 15x.

In 2012, Vijay Kedia rightly predicted the beginning of the structural bull run in India when the others were bearish. (Source ‘Indian equities in the first phase of a bull market’: Kedia Securities (Economic times)).

Recent Investments: Few of the recent investments of Vijay Kedia in 2017 are Everest Industries, Caplin ltd (Indian stationary company) and Vaibhav global.

He purchased Vaibhav global at an average price of Rs 350 in 2017. Currently, the stock is trading at Rs 714.

Investment Ideology

Vijay believes that an investor must have three qualities: Knowledge, Courage, and Patience.

After his initial losses in trading, Vijay Kedia shifted to investing with an ideology to hold the stocks for long term. Here’s a quote regarding his investment strategy.

“Invest only for long term. Minimum time frame is five years: Rome was not built in a day. It takes time for a story to mature. I always invest in small caps that go on to become mid to large caps.Whenever I bought a small cap, people discouraged me. No one liked the stock. For two years the company went nowhere; after that it gave multi-bagger returns.”

Apart, Vijay Kedia also gives a lot of importance to the management of the company while selecting a stock to invest.  Here’s a quote by Vijay Kedia regarding the role of management in a company:

“Management, business growth and understanding the downside risk are the most important things that I look for before buying any shares in any company. I believe that best businesses can be ruined by bad management and bad businesses can be revived by the best management. If management is experienced, aggressive, transparent and dedicated to their business, they will protect your investment in order to protect their own wealth and reputation.”

Source: No academic degree can guarantee success in stock markets: Vijay Kedia

(Source: IIMB PGPEM Vijay Kedia 2016)

Vijay Kedia’s success story is motivating for all those investors in the Indian stock market who want to make a huge fortune from stocks.  Here’s a quote by Vijay Kedia to end this post:

“Be balanced in your approach. Don’t be very optimistic in an uptrend and very pessimistic in a downtrend. Also, never have regrets;”- Vijay Kedia

Also read: D-Mart Founder- RK Damani Success Story [Bio, Facts, Net worth & More]

D-Mart Founder- RK Damani Success Story [Bio, Facts, Net worth & More]

RK Damani Success Story:

Age: 62
Net worth: $10 Billion
Occupation: Trader, Investor, Businessman

Radha Kishan Damani is a Mumbai based billionaire investor and businessman. The veteran investor Rakesh Jhunjhunwala considers RK Damani as his guru (mentor).

RK Damani is also the owner of mega-retail stores D-Mart.

According to Forbes, he’s the 12th richest person in India, with a net worth of over $10 Billion, which is equivalent to over Rs 64,000 Crores.

RK Damani Success Story:

Background:

RK Damani does not consider himself as a highly educated person. He dropped out of college while pursuing B Com from the University of Mumbai.

Before entering the stock market, RK Damani had a small ‘ball-bearing’ business.

However, after the death of his father, he started working as a stockbroker in his family business. He was 32 at that time.

Stock Market Career:

Although RK Damani started his career as a stockbroker, he soon understood that if he wants to make real money from the market, then he needed to trade his own money in the market, instead of being just a broker.

And soon he started trading in the Indian stock market.

RK Damani made a lot of profits from his trading in stocks. He was a very flexible trader and believed in making profits using the different market swings. For example, during the Harshad Mehta scam, he made a lot of money by ‘Short-selling’ the stocks, which was not common at that time.

Learn more about short-selling here.

However, after getting influenced by value investor Chandrakant Sampat, RK Damini changed his approach. He shifted to long-term value investing.

RK Damani made a lot of money by investing and holding multi-baggers stocks. Few best-performing stocks from his portfolio are VST Industries, Sundaram Finance, Indian Cement and Blue Dart.

Mr. Damani invested in VST Industries at an average of Rs 85 and it is currently trading at Rs 3,400. Further, India cement gave a return of +115%.

Few other companies in his portfolio are Century textiles, Trent, VB Holdings, 3M India, TV Today Network, Jubilant foodworks etc.

Career as a Businessman:

RK Damani has been very interested in consumer retails for a long time. That’s why he opened D-mart in 2002. Nevertheless, being a value investor, this was a very planned move by him.

As of 2017, D-Mart has over 140 stores spread across Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Daman and Diu and Punjab.

In March 2017, D-Mart went public by offering its IPO, under the name of the parent company- ‘Avenue Supermarts’. The IPO was a big hit. Avenue supermart offered its shares to the public at a  price of Rs 299 and got listed at Rs 604 after over-subscription. Currently, the shares of Avenue Supermarts are trading at Rs 1185.

Other Facts:

RK Damani considers himself as both a trader and an Investor. He trades in market swing and invests when he’s getting long-term value.

Further, Mr. Damani lives a very simple life. He is also known as ‘Mr. White and White’ because most of the times he wears a white shirt and white trouser. Moreover, he avoids media and public gatherings.

Also read: 10 secrets behind the stunning success of D-Mart’s Radhakishan Damani

Rakesh Jhunjhunwala success story

Rakesh Jhunjhunwala Success Story- Rs 5,000 to Rs 19,000 Crores!!

Rakesh Jhunjhunwala success story- Rs 5,000 to Rs 19,000 Crores!!

According to the latest updates on Forbes (14 Feb 2018), the net worth of Rakesh Jhunjhunwala is $3.1 Billion, which is equivalent to over Rs 19,000 Crores.

So, how did a regular guy from Mumbai with just Rs 5,000 became one of the most successful stock investors in Indian history? In this post, we are going to walk through the journey of Rakesh Jhunjhunwala in the Indian stock market.

Rakesh Jhunjhunwala success story:

Childhood:

Rakesh Jhunjhunwala, also known as the ‘big bull’ or ‘Indian Warren Buffett’ was born on 5th July 1960 in Mumbai.

His father was an Income tax officer.

Rakesh Jhunjhunwala consistently used to hear his father discussing stock market with his friends. As he was very curious about stocks, so once he asked his father that why stock price fluctuates daily? His father suggested him to read newspapers as its the news that makes the price of stocks to fluctuate.

Rakesh Jhunjhunwala also expressed his wish to pursue a career in the stock market. However, his father suggested him to first get a graduate degree from a college.

Rakesh Jhunjhunwala graduated from Sydenham college in 1985 as a chartered accountant.

After graduation, he again discussed his career goal as a stock market investor with his father. To this, his father replied that he is permitted to pursue any career. However, he also added that he’s not going to give him any money, nor he can ask the initial capital from any of his father’s friends.

Entering the stock market world:

Mr. Rakesh Jhunjhunwala entered the stock market with just Rs 5,000 in 1985. At that time, Sensex was at 150 points (currently Sensex is hovering at 35,000 points).

Nevertheless, soon Rakesh Jhunjhunwala was able to take an amount of Rs 2.5 lakhs from one of his brother’s client by promising to give higher returns compared to the fixed deposits.

Rakesh Jhunjhunwala’s first big profit was Rs 0.5 million in 1986. He bought 5,000 shares of Tata Tea at Rs 43 and within 3 months it was trading at Rs 143. He made a profit of over 3 times by selling the stocks of Tata tea.

In the next few years. Rakesh Jhunjhunwala made a number of good profits from stocks. Between 1986-89, he earned Rs 20-25 lakhs.

His next big investment was Sesa Goa, which he initially bought at Rs 28 and then increased his investment at Rs 35. Soon, the stock rallied to Rs 65.

Multi-baggers stocks in Rakesh Jhunjhunwala’s Portfolio:

Rakesh Jhunjhunwala manages a privately owned stock trading firm called ‘RARE Enterprises’. The name is derived from the first two initials of his name and his wife Mrs. Rekha Jhunjhunwala’s name.

During his long career in the stock market, Rakesh Jhunjhunwala invested in a number of multi-bagger stocks.

In 2002-03, Rakesh Jhunjhunwala bought ‘Titan Company Limited’ at an average price of Rs 3 and currently it is trading at a price of Rs 817. He is holding over 7.5 crore shares of titan company. He has an ‘overall’ holding of 8.45% in the company.

In 2006, he invested in LUPIN and his average purchase price was Rs 150. Today, LUPIN is trading at Rs 822.20

Few other multi-baggers in Rakesh Jhunjhunwala’s portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC etc.

Also read: How to find where the Big Players are Investing in the Market?

Philosophy:

Rakesh Jhunjhunwala considers himself as both trader and a long-term investor.

Here’s a quote from his interview with Economic times:

“Short-term trading is for short-term gain. Long-term trading is for long-term capital formation. Trading is what gives you the capital to invest. My trading also helps my investing in the sense I use a lot of technical analysis for trading at times.

If the stock is overpriced, I should sell but my trading skills tell me that the stock can remain overvalued or get more overvalued. Hence, I hold on to my investments.

So, I think they complement each other in many ways but they are two distinct compartments totally.“

Source: Economic Times- The journey of Rakesh Jhunjhunwala 

Further, Rakesh Jhunjhunwala is bullish towards the growth of India.

Quick Fact: Apart from being in the board of directors of big companies like Prime Focus Ltd, Geojit BNP Paribas financial services, Praj Industries, Concord Biotech etc, Rakesh Jhunjhunwala is also a movie producer. He has produced movies like ‘English-Vinglish’, ‘Shamitabh’, ‘Ki and Ka’. He is the chairman of Hungama Digital media entertainment Pvt Ltd.

Overall, Rakesh Jhunjhunwala success story is really inspiring for the new and old investors. In the end, here’s an amazing quote by Rakesh Jhunjhunwala:

Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.

#HappyInvesting

where the big players are investing

How to find where the Big Players are Investing in the Market?

There are many investors who keep an eagle-eye on where the big players are investing in the market their stock portfolio.

It makes complete sense to track where the big players are investing in the market as these players have already proved their expertise in stock picking through their success in the share market and created huge wealth for themselves.  Moreover, a common investor cannot match the mastery, opportunity, resources and expertise available to these investors.

Therefore, a retail investor can avail the maximum benefit of their expertise by keeping an eye on where the big players are investing in the market.

NOTE: Tracking the portfolio of successful investors is a good idea. However, investing blindly in the stocks where these big players are investing, might get you in a trouble. Please do a proper study of the stocks before investing. Afterall, even these big players are humans and are capable of making mistakes.

How to track where the big players are investing in the market?

There are few ways by which you can find the name of the big players of the stock market in any share and understand where they are investing:

1. Check the block/bulk deals list: This list of block and bulk deals are publicly disclosed on NSE/BSE website daily.

In a block deal, either the minimum number of 5 lakh shares or an investment amount of Rs 5 crores should be executed.

On the other hand, a bulk deal happens when the total quantity of shares bought or sold is greater than 0.5% of the total number of shares of a listed company. Read more here.

You can use this list to find the names of the big players in any stock. Here’s the link for the bulk/block deal on BSE website: Bulk Deals / Block Deals

Source: Bulk Deals / Block Deals

2. Check the shareholding pattern of the company on NSE/BSE Website: Every company discloses the names of those investors who is holding 1% or greater of the total number of shares. You can check the share holding pattern to find the name of big players in any stock.

You can find the shareholding pattern of a company on the company’s website, NSE/BSE website or financial websites like money control, investing etc.

For example, here’s the publicly available shareholding pattern for TITAN COMPANY. We all know who holds a large chunk of this stock (RAKESH JHUNJHUNWALA)!!

Source: Shareholding Pattern Public ShareHolder

3. Besides, there are many financial websites which track the latest portfolio of these big players.

For example TRENDLYNE- Superstar Large Shareholder Portfolios. You can follow these financial websites to get the names of the big players in any stock.

Here are links to the portfolio of few of the most successful investors in Indian stock market:

Rakesh Jhunjhunwala Latest Stock Portfolio
Porinju Veliyath Stock Portfolio and Success Story
Top 10 stocks in Dolly Khanna Portfolio

Also read: Is Copycat Investing Hurting Your Portfolio?

That’s all. I hope this post is useful to the readers. Happy Investing.