Vijay Kishanlal Kedia, the Mumbai-based investor well-known both for his stock picks and his singing, began investing in the stock market at the age of 19. He started Kedia Securities in 1992.
Kedia's portfolio is among the most followed in the Indian market, due to his reputation as a "market master" and the historical returns his portfolio has delivered over the years. Kedia prefers companies with good management and holds his position for a long period. He uses what he calls the ‘SMILE approach’ in investment – ‘small in size, medium in experience, large in aspiration, and extra-large in market potential’.
Kedia’s net worth currently stands at Rs 1,546.3 crore, and he publicly holds stakes in 16 stocks. (You can now invest in a shadow basket based on Vijay Kedia’s portfolio, available on Starfolio, which is updated and rebalanced as per the superstar portfolio).
Tejas Networks, Neuland Labs among top performers in Kedia’s portfolio
The best-performing companies in Kedia’s portfolio include Tejas Networks, Neuland Laboratories, Elecon Engineering, Sudarshan Chemical, and Affordable Robotic & Automation. Patel Engineering, a more recent buy, has also surged.
Telecom services company Tejas Networks has been an outsize gainer for Kedia, surging by 2345.4% since the time of purchase in Q1FY21. The investor holds a 1.9% stake in the company.
Kedia bought stakes in Neuland Laboratories and Elecon Engineering in Q3FY20 and Q1FY22, respectively. The share prices of the pharma and industrial machinery companies have risen by 1346.1% and 729.7%, respectively since his purchase. The investor booked profits on specialty specialty chemicals company Sudarshan Chemical (bought in Q3FY16), and industrial machinery firm Affordable Robotic & Automation (bought in Q2FY19). The prices of these companies rose by 604.7% and 514.8% respectively till Q4FY24, since his time of purchase.
Patel Engineering (construction & engineering firm), Vaibhav Global (textiles & apparels firm), and Talbros Automotive (auto parts & equipment company) are among other stocks in Kedia’s portfolio where he has booked profits since purchasing them, with share prices increasing by 315.4%, 337.4%, and 261.8%, respectively.
Atul Auto, Siyaram Silk, Reliance Infra form the portfolio bleed
Vijay Kedia’s portfolio includes many high-performing stocks, but also has its share of underperformers. His most recent buy Reliance Infrastructure (bought in Q4FY24) turned out to be the worst performer. Siyaram Silk Mills (bought in Q3FY23) is another double-digit loser. The share prices of these – electric utilities and textiles companies – have fallen by 36.5% and 16.2% since the time of purchase. Kedia cut a minor stake in Siyaram (0.1%) during Q4, taking his holding in the company to 1%.
Meanwhile, 2/3 wheeler maker Atul Auto witnessed a modest fall compared to the others, down 1.4% since he bought it in Q3FY16. He has consistently held a 20.9% stake in the company since Q2FY24.
Talbros Auto outperforms its industry, Innovators Facade underperforms
Kedia's portfolio includes several companies that have outperformed their industries over the past year. Top outperformers include Global Vectra Helicorp, Talbros Automotive, and Neuland Labs, outperforming the airlines, auto parts & equipment, and pharma industries by 111.8%, 80.3%, and 60.4%, respectively.
This is followed by specialty chemicals firm Sudarshan Chemical, and construction & engineering companies Om Infra and Patel Engineering, which also surged in the past year. These companies outperformed their respective industries by 51.7%, 46.9%, and 26.7%.
Meanwhile, Reliance Infrastructure, Affordable Robotic, Siyaram Silk, and Innovators Facade significantly underperformed the electric utilities, industrial machinery, textiles, and construction & engineering industries by 139.2%, 89.5%, 73.2%, and 58.1%, respectively, in the past year.
Telecom services and automobiles & auto components are among Kedia’s preferred sectors
Vijay Kedia has holdings in companies across different sectors. His most preferred sector currently is telecom services with an investment aggregating to Rs 366 crore. This is followed by automobiles & auto components, general industrials, and textiles apparels & accessories sectors, with holdings aggregating to Rs 335 crore, Rs 230.9 crore, and Rs 133 crore, respectively.
Kedia prefers telecom, automobile and general industrial sectors
Meanwhile, Kedia’s least preferred sectors are transportation, cement and construction, and commercial services & supplies, with investments of Rs 7.5 crore, Rs 63.5 crore, and Rs 66 crore, respectively.
Kedia adds three new companies to his portfolio in FY24
The marquee investor made a few additions to his portfolio in FY24. These are Global Vectra Helicorp (airlines company), Om Infra (construction and engineering firm), and Reliance Infrastructure (electric utilities company). Kedia currently holds 2.9%, 2.5%, and 1% stakes respectively, in these companies.
New additions to the portfolio in FY24
Most companies in Kedia’s portfolio were profitable last quarter
Most companies in Kedia’s portfolio that announced Q4FY24 results recorded profits in the quarter. Among them, eight companies reported YoY growth in net profit, while seven saw a smaller profit compared to the previous year’s quarter. Auto parts & equipment provider Talbros Automotive Components profit grew 194.4% YoY to Rs 49.8 crore while its revenue improved 10.5%. Speciality chemical company Sudarshan Chemical Industries profit increased by 78.2% YoY to Rs 58 crore during the quarter. Patel Engineering saw a 65.5% YoY growth in profit to 28.3% YoY to Rs 140.3 crore.
Most Kedia holdings record revenue growth in Q4FY24
Repro India (publishing company), Global Vectra Helicorp (airlines company), and Vaibhav Global (other apparels & accessories firm) reported a fall in net profit despite a rise a revenue. Neuland Laboratories (Pharmaceuticals manufacturer), Siyaram Silk Mills (textiles company), Om Infra (construction & engineering company) and Precision Camshafts ( auto parts and equipment manufacturer) reported revenue declines as well.
Neuland Labs, Sudarshan Chemicals, Siyaram Silk have high EPS TTM
Among the companies in the portfolio, Neuland Laboratorires (pharmaceuticals company) had the highest basic EPS TTM of Rs 233.9, followed by Sudarshan Chemical Industries (Rs 51.6), Siyaram Silk Mills (Rs 40.7), Elecon Engineering (Rs 31.7) and Talbros Automotive Components (Rs 17.8).
Around 50% of the companies in the ace investor’s portfolio trade in the PE Neutral Zone, 42.9% in the Sell Zone, and only 7.1% in the Buy Zone.
Repro India, Talbros Automotive Components, Precision Camshafts, and Patel Engineering are trading in the Neutral Zone, while Sudarshan Chemical Industries is in the PE Buy Zone.
Few stocks in Kedia's portfolio trade in PE Buy Zone, many in Sell Zone due to high valuations
Meanwhile, Global Vectra Helicorp, Tejas Networks, Vaibhav Global, and Elecon Engineering are among the companies currently trading in the PE Sell Zone.
How volatile is Kedia’s portfolio?
Over a year, the beta for all stocks in Kedia’s portfolio has been below 1 (signifying lower volatility). For the past quarter, only 1 stock has a beta higher than 1.
Overall, Kedia prefers stocks that are not as volatile as the benchmark index in the long run. He also prefers buying stocks with strong valuations. Kedia’s portfolio doesn’t see frequent changes. He holds onto stocks for long periods – once bought, he doesn’t let go easily. To quote the marquee investor, while luck plays a big part in stock market investments, knowledge, courage, and patience are the cornerstones.
