Top Stocks Held by Radhakishan Damani Under Rs 250

Have you heard of Mr White and White?

The Abbas Mustan duo?

In case you haven't guessed it, I'm talking about Mr Radhakishan Damani.

Often known as the man with a Midas touch, Radhakishan Damani is a Mumbai-based investor and entrepreneur. The self-made billionaire owns the country's third-largest mega-retail store chain, 'DMart' (Avenue Supermarts).

The Story of Radhakishan Damani

Radhakishan Damani started his career as a business trader, but a financial crisis at his home after his father's death led him to become a stock market investor.

A few of Damani's initial years in the stock market were spent in observation and speculation. During this phase, he closely followed the stock-market strategies used by Manu Manek, one of the most dreaded market operators of the time also known as "Cobra".

Fun fact - Radhakishan Damani became the biggest individual shareholder of HDFC in the year 1995, despite many of his friends suggesting him not to invest in the banking sector. They advised him that many other profitable shares are available in the market, and not to waste any money and time on a small venture like HDFC.

When somebody asked Radhakishan Damani why he was buying HDFC, and not a big PSU bank like SBI, he's rumoured to have said: "Dharavi Dharavi hota hai, aur Pedder Road Pedder Road... aage jaake HDFC ka bhaav dekh lena".

And the rest they say is history, After some years, the same HDFC shares made him a millionaire.

Later on, retail brokers suggested Damani to commence an e-commerce business but he concentrated only on brick-and-mortar businesses. Today, Dmart or Avenue Supermarts is one of the most successful and popular retail stores in India.

In the early 2000s, Radhakishan Damani decided to enter the retail business. He bought cheap land in Navi Mumbai and started D-Mart under Avenue Supermarts. In March 2017, Damani listed Avenue Supermarts and launched its IPO.

His journey has been intriguing till now; notwithstanding his personality. The man who always loved to keep a low profile suddenly became the talk of the town.

An IPO rising 114% of its price on the listing day itself is quite an unbelievable thing. And the impact was enormous. He rose to the levels of Ambani, Piramal, and Godrej who happen to be the billionaires.

According to Forbes India, Radhakishan Damani is currently one of the top 10 richest people in India with a net worth of US$ 18.6 billion (bn).

In today's article, we will look at two stocks held by Radhakishan Damani which are trading under Rs 250.

#1 Advani Hotels

The first stock on this list is Advani Hotels and Resorts (India) Ltd.

Advani Hotels & Resorts is primarily engaged in the hotel business through its Caravela Beach Resort, a five-star deluxe resort situated in South Goa.

Its core business includes providing guest accommodation, food and drink facilities, entertainment facilities, among other things.

In FY23-24, the company's total income stood at Rs 1,084 million (m) which was 8% higher than the previous fiscal year. The company posted muted growth despite the opening of new Mopa Airport and diversion of several flights from Dabolim airport in South Goa to the new Mopa airport in North Goa.

The company's net profit for the year came in at Rs 250 m.

Despite a fall in overall demand for the popular destination Goa, the Caravela Beach Resort has been able to maintain a steady growth in all parameters. The property hosted 45 weddings in FY24, representing the hotel's all-time high wedding business.

Additionally, improvements in MICE (Meetings, Incentives, Conferences, and Exhibitions) further boosted revenue.

Advani Hotels is one of the few hotels in the industry that is debt-free.

Notably, the company declared two dividends for FY24, which is the highest dividend payout in its history of 34 years.

In March 2024, the company also approved allotment of bonus shares in the ratio of 1:1.

As of June 2024, Radhakishan Damani holds a 4.1% stake in Advani Hotels.

Opportunities and Threats

Moving ahead, the hotel has a 200 million project in the pipeline for the construction of a banquet hall facility of approximately 22,000 square feet of which the banquet hall itself will be approximately 7,500 square feet plus an adjoining swimming pool, porte cochere, and function lawn.

The proposed capacity is to be added by 31 December 2024.

With a market capitalisation of Rs 6.6 bn, the company is currently trading at Rs 72.1 per share.

#2 Aptech

The second stock on this list is Aptech Ltd.

Aptech is a pioneer in India's non-formal education and training business with a significant global presence.

The company operates majorly in two segments namely the retail segment and the enterprise business group.

In financial year 2023-2024, the company's retail segment did very well whereas the EBG segment lagged.

The EBG segment's revenue fell by 68% from FY23 mainly due to a drop in business from the top 2 customers which equaled the total revenue reduction and also due to a shift from computer-based to paper-based assessments.

On the other hand, the global retail segment and the domestic retail segment gave a robust revenue performance with a 34% and a 37% jump in the top line over the previous year.

The company's consolidated operating revenue for the year ending March 2024 stood at 4.3 bn as compared to 4.5 bn in FY23.

Here are the factors that impacted the company's topline and bottomline in FY24 -

To boost its revenue, Aptech has launched a new brand identity, including a new website and logo, to reinforce its position as a tech-driven brand.

Aptech's strategy is to make students highly employable and job-ready through industry-relevant course curriculum. Aptech offers job-focused training courses, student engagement events and competitions, and job placement support.

Going ahead, Aptech plans to grow digitally and expand its store base. The company plans to enter new areas with high employment potential and add new verticals through acquisitions.

Aptech also has plans to incorporate AR and VR at the counselling desk and in course books.

As of June 2024, Radhakishan Damani holds a 3% stake in Aptech Ltd.

With a market capitalisation of Rs 12.3 bn, the company is currently trading at Rs 212.

Snapshot of RK Damani Stocks on Equitymaster's Stock Screener

Here's a table showing the stocks held by Radhakishan Damani along with various important metrics.

In Conclusion

Radhakishan Damani follows a value investing strategy and invests in companies that are undervalued but have strong fundamentals.

He believes in buying stocks at a discount to their intrinsic value and holding them long-term.

He also focuses on companies with a sustainable business model and a competitive advantage.

Damani's deep understanding of businesses helped him succeed both as an investor and a businessman. Learning about different businesses can provide valuable insights for both investing and running a business.

His journey from a stockbroker to an ace investor and successful businessman is truly inspiring. It shows us the importance of hard work, discipline, and the willingness to learn.

Damani's name will always be associated with success in both the stock market and the retail industry. His journey is a shining example of how dedication and a keen eye for opportunities can lead to immense wealth and recognition.

How Damani rejigs his portfolio in the coming months remains to be seen.

Happy Investing.

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...