RadhaKrishna Damani Portfolio

"India, a land of opportunities, boasts one of the world's most popular stock markets. Within its dynamic landscape, the stock market presents significant potential for wealth accumulation for those who navigate it skilfully. Yet, it's essential to acknowledge the inherent risks; only a select group of accomplished traders consistently achieve profits.

So, who are these notable traders, and what secrets contribute to their success? Let's delve into the profiles of the top ten brokers in India, examining the characteristics that set them apart from the competition. Through this exploration, we aim to glean insights that may aid in enhancing your prowess as a trader."

Mr. Damani’s Journey-

Born in Mumbai in 1954, Radhakrishnan first made his name as a businessman by founding Dmart and later went on to become a multibillionaire investor full-time. His own investment firm is called Bright Stars Investments Limited.
On August 19, 2021, Bloomberg Billionaire Index ranked him as the 98th richest person in the world. He made money by short selling stocks that Harshad Mehta had fraudulently inflated throughout the 1990s.

Top Stocks in Radhakishan Damani Portfolio 2023-

Here's a simplified overview of the stocks in Radhakishan Damani's portfolio-

1. Avenue Supermarts Ltd (D-Mart)- 

- Retail chain known for diverse products.
- Popular in India's retail industry.

2. VST Industries Ltd-  

- Leading in the tobacco industry.
- Focus on manufacturing and selling cigarettes.

3. India Cements Ltd-   

- Major cement manufacturer.
- Produces and distributes cement and related products.

4. Advani Hotels & Resorts India Ltd-   

- Hospitality firm operating hotels and resorts.
- Offers excellent accommodation, dining, and event services.

5. Aptech Ltd-   

- Global education and training company.
- Specializes in IT and computer education.
- Provides courses in software development, networking, and digital marketing.

In Conversation with Mr. Damani

Question - Mr. Damani, can you tell us about your approach to penny stocks in your portfolio?

Answer - Radhakishan Damani: Certainly. As of March 31, 2023, my portfolio doesn't include any penny stocks, which are those trading for less than Rs. 100 per share. My focus has traditionally been on large-cap and mid-cap stocks. I believe they provide a good balance of growth potential and risk.

Question - Why do you tend to avoid penny stocks?

Answer - Radhakishan Damani: Well, I'm a long-term investor, and penny stocks generally come with a higher risk profile. I prefer to steer clear of them to maintain a more stable and balanced portfolio.

Question - Have you ever considered investing in penny stocks?

Answer - Yes, I have in the past. A notable example is VST Industries Limited. Back in 2013, I invested when the stock was around Rs. 50 per share. Over time, it appreciated significantly to Rs. 270 per share, resulting in a remarkable return of over 540%.

Question - Does this mean you might consider penny stocks if the opportunity arises?

Answer - Absolutely. If I find penny stocks that I believe are undervalued and show potential for substantial returns, I may consider investing. However, it's crucial to emphasize that I approach such investments with caution, thoroughly assessing their prospects before making any decisions.

Sector-Wise Investment

(Source:MoneyControl)

Question - Mr. Damani, can you update us on your recent investment and disinvestment activities in 2023?

Answer - Certainly. As of now, there have been no recorded share purchases in 2023, based on the latest shareholding pattern reported to the exchanges. My most recent purchase was back in December 2022 when I acquired a 1.19% stake in United Breweries for Rs. 3,136,536.

Question - Any specific reason for not making new share purchases in 2023?

Answer - Well, my investment strategy is primarily focused on the long term. I may be currently prioritizing the retention of my existing shareholdings rather than actively buying new shares this year.

Question - Can you tell us about the share sales you made in the fiscal year 2022-2023?
Answer - In the past fiscal year, I made the decision to sell shares in United Breweries, Avenue Supermarts Ltd, and India Cements.

Question - Any particular strategy behind these sales?

Answer - It's part of the natural cycle of investment. As an investor, I regularly evaluate my portfolio and make strategic decisions based on market conditions and the potential for growth. The sales were part of that ongoing assessment.

Question - Mr. Damani, could you share insights into your investment strategy?

Answer - Certainly. My investment strategy revolves around a few key principles. Firstly, I'm a proponent of value investing. I actively seek out companies whose stock prices are lower than their intrinsic value. This, I believe, provides an opportunity when the market underestimates their true potential.

Question - Can you elaborate on your long-term orientation?

Answer - Absolutely. I believe in a long-term perspective. Companies need time to realize their full potential, and I am willing to patiently wait for the stock price to reflect their intrinsic value. It's about understanding the business and giving it the time it needs to grow.

Question - Your portfolio is known to be concentrated. Could you explain this approach?

Answer Yes, I maintain a concentrated portfolio. This allows me to focus my investments on a select number of stocks. The idea is to dedicate more attention to in-depth research and effectively manage risk within the portfolio.

Question - You're known for contrarian investing. How does that influence your decisions?
Answer - Contrarian investing is a significant part of my strategy. I often invest in companies that are currently out of favor with the broader market. I believe these companies are undervalued and have confidence in their ability to outperform the market over the long term.

Question - What can investors learn from your approach?

Answer -  A few takeaways would be to emphasize strong fundamentals. Prioritize companies with a proven track record of profitability and growth. Also, adopt a long-term mindset; significant value creation often takes time. Conduct thorough research, rely on your own analysis, and exercise patience during market fluctuations. Discipline is crucial - remain composed and unafraid to divest from underperforming stocks. This disciplined approach helps navigate the investment landscape effectively.