An interesting trend among superstar investors is their preference for companies with low or no debt, according to an analysis by Trendlyne.
For instance, Vijay Kedia’s top three holdings, Atul Auto, Tejas Network, and Elecon Engineering, which form half of his portfolio, either have minimal debt or are debt-free.
This strategy of combining low debt with high revenue growth has yielded results for him.
Mid and small-cap stocks, known for their higher risk-reward ratio, have delivered high returns to investors like Kedia. Two of his top three holdings have risen by almost 100 per cent over the last year.
Kedia’s net worth increased by 65 per cent and 40 per cent in Q1 and Q2FY24, respectively. Overall, his portfolio has grown by 88 per cent over the past year, making him the second-best performer after Rekha Jhunjhunwala, according to Trendlyne.
Rekha Jhunjhunwala leads the pack with a 209 per cent surge in her net worth. This steep growth is largely due to inheriting her late husband Rakesh Jhunjhunwala’s portfolio and consistently increasing her stake in Titan.
In addition, Titan and Tata Motors, her top two holdings, have risen by 24 per cent and 57 per cent over the past year.
Despite the high volatility in Q3 and Q4FY23, the one-year change in most superstar investors’ net worth has increased significantly overall. Their strategy of staying invested and adding investments when markets fell, has helped most superstar investors’ net worth grow in the past year, the analysis said.
The average revenue growth for the top holdings of Ashish Kacholia, and Anil Kumar Goel over the past three years has exceeded 100 per cent.
Consequently, their net worth has increased significantly, by 38 per cent and 35 per cent, respectively, in the past year.
Monish Parbai and Nemish Shah have seen moderate growth in their net worth due to the subdued performance of their top holdings like Sunteck Realty and Lakshmi Machine Works.
Sunil Singhania’s portfolio has 28 stocks spread across sectors. Two of his top three holdings have risen by over 100 per cent, contributing to his net worth rising by more than 30 per cent in the past year, as per Trendlyne.
In contrast, two superstar investors, Dolly Khanna and Radhakishan Damani, have reported a decline in net worth over the past year.
More than 95 per cent of Damani’s portfolio was invested in Avenue Supermarts which fell by 8 per cent last year.
Khanna, on the other hand, cut her stake in several holdings in Q3 and Q4FY23, leading to a fall in her net worth, the analysis said.
AdaniConneX establishes India's largest sustainability linked financing to raise up to $1.44 billion
In a bid to accelerate digital infrastructure growth in India, AdaniConneX, a JV between Adani Enterprises and EdgeConneX, on Sunday said it has established the country’s largest sustainability-linked financing to raise up to $1.44 billion.
Credit card data of 17K ICICI Bank users exposed; bank blocks cards, assures compensation
After credit card data of at least 17,000 new ICICI Bank customers was exposed and reached "wrong users", the bank said on Thursday that it has blocked these cards and is issuing new ones to the customers.
NDA rule has shown superior numbers on GDP growth, inflation, unemployment compared to UPA
The NDA rule of the last 10 years has shown superior numbers on GDP growth, inflation, CAD (Current Account Deficits), unemployment and FDI ex of pandemic year compared to the UPA regime, broking firm Prabhudas Lilladher said.
RBI crackdown triggers crash in Kotak Bank shares
The RBI had, on Wednesday evening, barred Kotak Mahindra Bank, with immediate effect, from taking on new customers and issuing fresh credit cards.
Kotak Bank promoter donated electoral bonds worth Rs 60 cr, but RBI cracks down on lender to protect customers
Infina Finance, one of the promoter group entities of Kotak Mahindra Bank which was barred by the RBI on Wednesday from onboarding new customers, had donated electoral bonds worth Rs 60 crore to the BJP.
RBI lists 6 factors powering India’s take-off to become world’s 3rd largest economy
While India’s recent growth performance has surprised many, triggering a flurry of upgrades from financial institutions such as the IMF, the RBI bulletin released on Tuesday cites six factors that will propel the country to become the world’s third-largest economy.
Congress in Tripura blocks rail stations to protest police fired-killing of 5 farmers in MP
The firing on Tuesday came during raucous protests to demand better crop prices in the drought-ravaged region that saw one farmer suicide every five hours in the past two years.
DMs, SPs of violence-hit MP districts transferred
The farmers agitation entered its eighth day on Thursday. The peasants have been on strike since June 1, demanding loan waiver and fair price for their produce.