Ace Investor: Sunil Singhania ( Rupa & Company Ltd and Dynamic Technologies Ltd )

This legendary investor helped Reliance Growth Mutual Fund AUM grow 100x in just 22 years!

Rupa & Company Ltd and Dynamic Technologies Ltd from his portfolio showed weak Q4 results.

Sunil Singhania is among the top 5 investors in India. He has co-founded Abakkus Asset Manager, an India focused asset management firm. Before, he was a global equity head at Reliance Capital Group Ltd. Under his leadership, the Reliance Growth Fund’s (now known as Nippon India Growth Fund) AUM grew 100x in less than 22 years. 

As per the March quarterly ending, Sunil Singhania has 25 stocks in his portfolio worth Rs 1732 crore. Recently, he added 2 large positions in Rupa & company Ltd and Dynamic Technologies Ltd. He increased the stake by 1.2% in Rupa & company Ltd from 2% to 3.2%. The stake in Dynamic Technologies (India) Ltd was increased by 0.4% from 2.1% to 2.5%.

Rupa & Company Ltd is a leading knitted apparel brand in India. The Company offers textile, leather and other apparel products. The company has a market capitalization of Rs 2896 crore. The shares of the company are trading at 15.62x PE. On June 13 2022, at 12.08 pm, the stock is trading at Rs 363. 

Recently, the company announced a disappointing set of Q4 numbers. The Q4 revenue remains flat at Rs 455 crore. The operating profit of the company showed a YOY decline to Rs 74 crore from Rs 91 crore. A significant decline was observed in the operating profit margin from 20% to 16% in Q4 FY22. According to company management, the decrease in margins was due to raw material costs rising, Covid wave, and advertising expenses. 

Dynamic Technologies Ltd is involved in the manufacturing of hydraulic gear pumps and automotive turbochargers. They serve clients across the Aerospace, Automotive, Hydraulic and Security industries. The company has a market capitalization of Rs 1,200 crore. The stock is trading at a high PE of 80.2x. 

The company reported weak Q4 results. HDFC Infrastructure Fund Growth holds almost 2% of the business. At 12:08 pm, the stock is trading at Rs 1953