Top 5 Stocks Sunil Singhania Bought and Sold Recently

In January 2024, India pipped Hong Kong to become the fourth-largest stock market by market capitalisation.

The market cap crossed US$ 4.3 trillion (tn) against US$ 4.2 tn for Hong Kong.

India's stock market capitalisation had crossed US$ 4 tn for the first time in December 2023. The rally in the Indian stock market came on the back of a rapidly growing retail investor base, sustained inflows from foreign institutional investors (FII), strong corporate earnings and robust domestic macroeconomic fundamentals.

Additionally, India's emergence as an alternative to China has attracted substantial capital from global investors and companies.

Alas, navigating your investments in this booming market can be quite challenging.

To sidestep this complexity, many investors choose to mirror the portfolios of successful investors.

For such investors, this article explores the recent modifications made by Sunil Singhania to his portfolio in the last quarter.

By the way, we also covered a similar editorial on Ashish Kacholia last week, check it out here if you haven't already.

Coming back to Sunil Singhania's portfolio, let's start with Shriram Piston.

#1 Shriram Piston & Rings

Leading the list is Shriram Piston & Rings.

Shriram Pistons & Rings manufactures pistons, piston pins, piston rings and engine valves for various automotive companies in the domestic and export markets.

According to the data available on exchanges, Sunil Singhania, through Abakkus Emerging, added a 2.3% stake in the company on 20 December 2023.

The decision to buy the counter can be attributed to its recently acquiring a majority stake in a component design and specialist manufacturing company.

In late October 2023, Shriram Pistons, via its subsidiary, acquired an additional 62% stake in Takahata Precision India for Rs 2.2 billion (bn).

After this acquisition, the company holds a 75% stake in Takahata.

This acquisition gives Shriram a chance to diversify its market presence into certain segments, which adds another avenue for revenue.

The other reason could be the company's presence in the EV space.

Auto component maker Shriram Pistons & Rings has a majority stake in electric motor design and manufacturing firm EMF Innovations.

Shriram acquired this stake in December 2022 to foray into the emerging electric vehicle (EV) mobility space.

Further, the company posted a stellar result in the latest September 2023 quarter.

It posted revenue of 7.5 bn compared to Rs 6.4 bn posted in the same period last year, while net profit came in at Rs 1.1 bn compared to Rs 730 million (m) a year ago.

Going forward, it aims to maintain its high penetration in the Internal Combustion Engine (ICE) market across two-wheelers, three-wheelers, passenger and commercial vehicles.

For more details, see the Shriram Pistons & Rings company fact sheet and quarterly results.

#2 Rajshree Polypack

Second on the list is Rajshree Polypack.

Rajshree Polypack is one of the leaders in manufacturing rigid plastic sheets and thermoformed packaging products to the industry segment it caters to.

The company manufactures customised thermoformed packaging products, which are tailored to the client's requirements.

The latest shareholding pattern of Rajshree Polypack shows that Sunil Singhania's name was missing from the list of shareholders.

This means perhaps his holding might have slipped below 1% or he could have sold the entire stake in the previous quarter.

Before this, in the September 2023 quarter, Ashish Kacholia held a 4.3% stake in the company.

Nevertheless, the investor has been decreasing his holdings over the last few quarters, starting June 2022.

This can be due to a decline in profits in the September 2023 quarter. For the same quarter, the company reported a 3.6% YoY rise in revenue at Rs 675 m, while the net profit decreased by 14.8% YoY to Rs 24.5 m.

Additionally, the promoters reduced their stake in the December 2023 quarter. During the same quarter, promoters decreased their holdings in the company from 52.5% to 48.9%. This reduction marks the first instance of the promoters reducing their stake in the past eight quarters.

Going forward, the company is hoping for increased revenue and profitability.

Further, the company is setting up manufacturing units with Kesav Plasttech Ltd in Khurda and Rengali industrial areas, Sambalpur, with a combined investment of Rs 1 bn.

For more details, see the Rajshree polypack company fact sheet and quarterly results.

#3 ION Exchange

Third on the list is Ion Exchange.

Ion Exchange (India) is one of the very few companies in the world with a range of technologies, products, and services that cover the entire spectrum of water and wastewater treatment.

The latest shareholding of Ion Exchange shows that Sunil Singhania reduced his stake by 0.6%, equivalent to 939,215 shares, during the December 2023 quarter. His ownership decreased from 2.8% in the June 2023 quarter to 2.1% in December 2023.

Interestingly, this isn't the first instance of a seasoned investor selling his stake in Ion Exchange. Before this, in the June 2023 quarter, Sunil Singhania divested 0.5% of his stake in the company, which amounted to 726,907 shares.

This could be due to the continuous selling of promoter stakes.

During the December 2023 quarter, promoters reduced their holdings in the company from 26.8% to 26.5%. It's worth noting this isn't the initial instance of such a reduction, as promoters have been gradually reducing their stake in the company since December 2022.

Quarter ending	Sep-22	Dec-22	Mar-23	23-Jun	23-Sep	23-Dec
Stake (%)	27	26.9	26.9	26.9	26.8	26.4

This could have influenced Singhania's choice of trimming his position.

Besides that, in December, the company disclosed an 8% YoY increase in revenue at Rs 5.5 bn, while the net profit for the quarter stood at Rs 466 m, marking a 1.9% decrease from Rs 475 m last year.

Recently, the company secured a contract from Material Construction Trading FZCO, UAE, for the engineering, manufacturing, delivery to site, supervision of erection, commissioning, and start-up of a Desalinated water unit for a Project in North Africa at a contract value of Rs 1.5 bn plus VAT.

The project will be completed within eight months from the date of the Letter of Acceptance. Moving ahead, to sustain its growth trajectory, the company will persist in expanding its reach.

For more details, see the Ion Exchange company fact sheet and quarterly results.

#4 EMS

Fourth on the list is EMS.

EMS, previously known as EMS Infracon, provides water and wastewater collection, treatment, and disposal services.

The company provides complete, single-source services from engineering and design to construction and installation of water, wastewater, and domestic waste treatment facilities.

According to the data, Singhania trimmed a 0.4% stake in the company, reducing the stake from 1.7% in the September 2023 quarter to 1.3% in the December 2023 quarter.

He currently holds 747,940 shares valued at a little over Rs 430 million.

This could be because he may have chosen to book profits. Since its listing in September 2023, its shares have surged by over 105%. This upward trend was due to robust financial performance.

In the September 2023 quarter, the company witnessed a 73% increase in revenue, rising from Rs 1.2 bn last year to Rs 2.1 bn. Concurrently, net profit surged by 50%, climbing from Rs 300 m to Rs 450 m.

This growth was due to the uptick in government projects and the reduction in operating expenses over time.

Additionally, the reduction in stake by Foreign Institutional Investors (FIIs) from 7.2% in the September 2023 quarter to a 4.1% stake in the December 2023 quarter may have contributed to the investor's decision.

Recently, EMS received a work order to develop a water supply and sewerage system worth Rs 4.8 billion (bn).

This 18-year commitment encompasses construction, operation, and maintenance, promising a transformative impact on the town's water security and environmental health.

Going forward, the company is strategically poised to enhance and specialise its capabilities, particularly in sewage treatment and water reuse, aiming to emerge as a regional frontrunner in these specific niches.

For more details, see the EMS LTD. company fact sheet and quarterly results.

#5 AGI Greenpac

Last on the list is AGI Greenpac.

AGI Greenpac manufactures and trades building products, glass products & plastic packaging products, consumer products and retail businesses.

According to the data, Singhania trimmed a 0.3% stake in the company, reducing the stake from 1.4% in the September 2023 quarter to 1.1% in the December 2023 quarter.

He currently holds 717,349 shares valued at a little over Rs 581 million.

This could be because he may have chosen to book profits. In the past year shares of the company have zoomed over 150%.

This rise was due to the company securing the green light from legal authorities for the acquisition of Hindustan National Glass (HNGL).

The approval, granted by the National Company Law Appellate Tribunal (NCLAT), comes after a series of appeals presented to the NCLAT by various parties, including Independent Sugar Corporation and others.

Further, the company has initiated commercial production at its newly established speciality glass facility in Bhongir, Telangana, boasting an impressive daily capacity of 154 tons.

This expansion has elevated the company's overall installed capacity to a substantial 1,754 tons per day.

Looking ahead, the global container market is anticipated to have a compound annual growth rate (CAGR) of 3.7% between 2021 and 2028.

This growth is attributed to the increasing global demand for fast-moving consumer goods (FMCG) and alcoholic beverages, as highlighted in the company's FY23 annual report.

This underlines the company's potential for growth in the thriving glass packaging sector.

For more details, see the AGI Greenpac company fact sheet and quarterly results.

To Conclude

While this approach might seem appealing, it has several potential drawbacks. A replicating investor may end up buying a stock at a much higher price than the successful investor, as the latter may have bought the stock much earlier when it was undervalued.

Also, their risk tolerance level, size of investment and investment horizon is often quite different from that of a retail investor. They may be able to take bigger risks and hold on to investments for a longer period of time.

Hence, blindly following their moves without considering one's own risk profile and investment goals can be risky.

While it might be tempting to follow the investment moves of successful investors, it is crucial to conduct thorough research and analysis before making any investment decision.

Investors should focus on investing in fundamentally strong companies that align with their individual goals and risk tolerance level, rather than blindly following these gurus.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...