Vijay Kedia Portfolio: Top 5 Stocks

In his book titled Mastery, these paragraphs by Robert Greene caught my attention:

• After your formal education, you enter the most critical phase in your life - a second, practical education known as The Apprenticeship. Every time you change careers or acquire new skills, you re-enter this phase of life.
  
  The dangers are many. If you are not careful, you will succumb to insecurities, become embroiled in emotional issues and conflicts that will dominate your thoughts; you will develop fears and learning disabilities that you will carry with you throughout your life.
  
  Before it is too late you must learn the lessons and follow the path established by the greatest Masters, past and present - a kind of Ideal Apprenticeship that transcends all fields.
  
  In the process you will master the necessary skills, discipline your mind, and transform yourself into an independent thinker, prepared for the creative challenges on the way to mastery.

This goes on to prove that historical examples of true mastery in an activity are usually the product of a long discipline that allows us to gain knowledge and experience.

In the stock market, this analogy can be done with investing gurus.

Everybody has their eyes and ears wide open when investing gurus buy or sell stake in a particular company. That's because they are well-known for their popular strategies. They also have a successful track record of beating market like returns and have a knack of identifying multibagger stocks.

One such investing guru in India is Vijay Kishanlal Kedia.

Kedia is an Indian investor and trader based out of Mumbai. His company - Kedia Securities - is the largest shareholder (after the promoters) in several listed companies.

Kedia has been involved in the Indian stock market since the age of 19. He has been described by many as a 'market master'.

To point out a few of his investments, he bought ACC at Rs 300 in 1992-93 and sold the stock around Rs 3,000 within a year and a half.

Today, we take a look at Vijay Kedia's portfolio and his current top 5 investments.

Publicly available data shows that Kedia holds 15 stocks in total via his company and his portfolio. These five stocks highlighted below are his biggest investments at present in value terms and not volume.

#1 Tejas Networks

The first stock on this list is a Tata group company - Tejas Networks.

As of September 2022, shareholding pattern of Tejas Networks shows that Vijay Kedia holds 2.56% stake in the company or 3.9 million (m) shares in total.

Kedia holds these shares via his investment firm Kedia Securities.

Considering Tejas Networks' current market price of Rs 639 as on 13 December 2022, Vijay Kedia's total value in Tejas Networks comes to around Rs 2.5 billion (bn).

Initially, Vijay Kedia had only bought 0.81% equity in Tejas Networks in July 2020. The deal at that time was valued at Rs 37 m. The shares were acquired at a price that was a steal when it was trading at around Rs 49 per share.

Over the next couple of quarters, Kedia increased his stake to over 4% in Tejas Networks through his investment firm and even from his own portfolio.

Here's how his holding in Tejas Networks has varied ever since he acquired stake in 2020.

Quarter Ending	No of shares	Stake (%)
Sep-20	3,900,000	4.21
Dec-20	3,900,000	4.21
Mar-21	5,000,000	5.36
Jun-21	5,000,000	5.36
Sep-21	3,900,000	3.42
Dec-21	3,900,000	3.42
Mar-22	3,900,000	3.42
Jun-22	3,900,000	2.57
Sep-22	3,900,000	2.56

Data Source: BSE

Kedia's big bet on Tejas Networks was bang on. In just a little over 2 years, the company staged a remarkable comeback and rose from Rs 50 to over Rs 700.

During this period, a lot of changes were responsible for the company's growth trajectory.

From a zero-promoter holding entity since listing in 2017, Tejas Networks became a promoter holding entity in December 2021.

Ever since the announcement of Tata group acquiring a controlling stake in Tejas Networks to help it access 5G technology, its shares have been on a roll.

Apart from Tatas, Bharti Airtel has also chosen Tejas Networks to expand its optical network capacity in key metropolitan markets. 5G and the Tata acquisition was prime factor behind Tejas Networks' stellar rally.

In its annual report for 2021-22, the company has highlighted that post 5G spectrum auctions, the company is planning a multi-year capex cycle for building both wireline and wireless infrastructure.

As India readies for 5G adoption, global players will look for opportunities in this space. For instance, Finnish tech players have said they are looking at opportunities to collaborate in 5G and 6G network planning and roll-out.

Now that Tejas Networks has Tata group's backing and financial resources, it will expand its telecom products-portfolio. It will and design/manufacture the gamut of 4G and 5G wireless gear. This would help Tejas take on the likes of Ericsson, Nokia, and Huawei in tapping capital investments.

The firm has already confirmed to invest Rs 7.5 bn under design-led Production Linked Incentive (PLI) scheme for manufacturing of telecom and networking products.

Apart from Vijay Kedia, mutual funds and foreign investors also hold significant stake, 3.9% and 10.8% to be precise.

#2 Vaibhav Global

Next on this list is ecommerce jewellery firm Vaibhav Global.

As of September 2022, shareholding pattern of Vaibhav Global shows that Vijay Kedia holds 1.95% stake in the company or 3.2 m shares in total.

Considering Vaibhav Global's current market price of Rs 334 as on 13 December 2022, Vijay Kedia's total value in the company comes to around Rs 1.1 bn.

Initially, Kedia bought around 350,000 shares of Vaibhav Global between December 2016 and March 2017 at an average price of Rs 350.

His rationale for buying into the counter? "The company does business in the US but is listed on BSE. I think the company is learning from its mistakes. Now it is on the right path. Slowly and steadily, it will keep on progressing."

Here's how Kedia's holding in Vaibhav Global has varied ever since he acquired stake in 2017.

Quarter Ending	No of shares	Stake (%)
Mar-17	345,000	1.06
Jun-17	345,000	1.06
Sep-17	345,000	1.06
Dec-17	345,000	1.06
Mar-18	347,276	1.07
Jun-18	422,778	1.3
Sep-18	623,940	1.91
Dec-18	683,108	2.09
Mar-19	783,608	2.4
Jun-19	783,608	2.4
Sep-19	700,000	2.14
Dec-19	700,000	2.17
Mar-20	700,000	2.17
Jun-20	700,000	7.16
Sep-20	659,087	2.03
Dec-20	623,000	1.91
Mar-21	600,000	1.84
Jun-21	3,000,000	1.84
Sep-21	3,000,000	1.83
Dec-21	3,035,000	1.85
Mar-22	3,045,000	1.85
Jun-22	3,200,000	1.95
Sep-22	3,210,000	1.95

Data Source: BSE

Kedia's bet on Vaibhav Global came at a time when the company completed its transition and was poised for growth.

The company was able to live up to its reputation and delivered multibagger gains in the next 3 years.

But all changed in 2022 when macro concerns started to weigh on its financials.

First, sky-high inflation in US and the UK constrained consumer spending on discretionary items. These markets contributed a large chunk to Vaibhav Global's revenues in 2022.

Another factor which affected the company was revenge travel. As economies opened up, people shifted to in-person shopping.

In its investor presentation, Vaibhav Global's management explained that the last 2 years of travel restrictions have led people to go out for revenge shopping, impacting all digital retailers like Vaibhav Global.

However, despite all these headwinds, the company has made multiple investments in the business.

The management further aided sentiment as they are now expecting margins to improve in the second half of the current financial year.

Apart from Vijay Kedia, data shows that Ashish Kacholia's portfolio also has exposure to this stock. He holds 1.2%stake in the company, or 2 m shares.

#3 Elecon Engineering Company

Third on this list is Elecon Engineering.

As of September 2022, shareholding pattern of Elecon Engineering shows that Vijay Kedia holds 1.94% stake in the company or 2.17 m shares in total.

Considering Elecon Engineering's current market price of Rs 430 as on 13 December 2022, Vijay Kedia's total value in the company comes to around Rs 0.9 bn.

Initially, Kedia invested in the stock in June 2021, and over the next couple of quarters, added more shares consecutively.

Here's how Kedia's holding in Elecon Engineering has varied since June 2021.

Quarter Ending	No of shares	Stake (%)
Jun-21	1,337,722	1.19
Sep-21	1,300,000	1.16
Dec-21	1,300,000	1.16
Mar-22	1,339,713	1.19
Jun-22	2,075,000	1.85
Sep-22	2,175,000	1.94

Data Source: BSE

Just like Tejas Networks, Kedia's bet on Elecon Engineering was right on the money. The company underperformed initially, at the start of 2022. It delivered negative or no returns for 3-4 month before witnessing a breakout.

Kedia, who stayed put in the stock and kept accumulating Elecon shares, was a big beneficiary.

Shares of the company rallied in the second half of 2022 and went on to deliver multibagger returns.

Many factors were responsible behind the company's growth trajectory.

First of all, the company received a big industrial boost. The company derives its growth through industrial capex.

Over the last decade, steel and cement sectors have accounted for 20-30% of revenue of the company's transmission segment. When the capex cycle showed signs of recovery, the company benefitted big time.

Strong industrial capex drove higher utilisation in the industrial gears segment. Elecon Engineering is a market leader in the manufacturing of industrial gears. All this resulted in healthy financials and strong revenue guidance going forward.

The company's CFO Narsimhan Raghunathan in an interview said revenues are expected to reach Rs 15 bn mark by financial year 2023-24. This on the back of strong domestic demand and the export potential.

He also said that the company will become debt free by March 2023.

#4 Cera Sanitaryware

Next on the list is Cera Sanitaryware.

As of September 2022, shareholding pattern of Cera shows that Vijay Kedia holds 1.02% stake in the company or 132,507 shares in total.

Considering Cera's current market price of Rs 5,364 as on 13 December 2022, Vijay Kedia's total value in the company comes to around Rs 0.7 bn.

Here's something interesting...Kedia initially started to invest in Cera since 2004. He has accumulated this stock in the last 23 years.

He even revealed the truth from his twitter handle citing, how one share can change your life.

Had more than 2%. Still holding 1% and there's no appreciation in last 5 years. (Read my quote, "Only two people know top and bottom: God and a lier.").
Now say If, if it doubles in next 5 years, my investment will be 200 times in 23 years. "One share can change your life. " https://t.co/ucmNza5jMV

— Vijay Kedia (@VijayKedia1) July 27, 2022

According to the tweet, Kedia started buying shares of Cera in 2004 and it took him a year to accumulate more at around Rs 40 per share. Today, Cera trades at more than Rs 5,000 per share.

While we can't go all the way back to 2004, here's how Kedia's holding in Cera has varied in the last few quarters.

Quarter Ending	No of shares	Stake (%)
Jun-21	135,306	1.04
Sep-21	135,306	1.04
Dec-21	-	-
Mar-22	130,507	1.00
Jun-22	132,507	1.02
Sep-22	132,507	1.02

Data Source: BSE

Over the years, Cera has established its presence in the sanitaryware industry through strong branding. It commands over 20% market share in the organised domestic sanitaryware industry. Strong marketing and distribution are the key factors behind this.

At present, as people spend more to decorate their home and focus on renovation and home improvement, sanitaryware companies like Cera will be the biggest beneficiaries.

The year gone by saw the company achieve a milestone of highest-ever EBITDA margins.

The company now has a capex plan of around Rs 2 bn for expansion, which includes a greenfield sanitaryware plant and a brownfield faucet ware unit.

#5 Mahindra Holidays

Last on this list is Mahindra Holidays.

As of September 2022, shareholding pattern of Mahindra Holidays shows that Vijay Kedia holds 1.02% stake in the company or 2.1 m shares in total.

Considering Mahindra Holiday's current market price of Rs 277 as on 13 December 2022, Vijay Kedia's total value in the company comes to around Rs 0.6 bn.

Reports state that Kedia initially invested in Mahindra Holidays back in 2016. But the stake back then could be less than 1% as BSE filing have no record of him holding Mahindra Holidays in 2016.

It was in June 2021 when Kedia held more than 1% stake in the company and the filing mentioned his name.

Here's how Kedia's holding in Mahindra Holidays has varied since June 2021.

Quarter Ending	No of shares	Stake (%)
Jun-21	1,360,000	1.02
Sep-21	2,040,000	1.02
Dec-21	2,040,000	1.02
Mar-22	2,040,000	1.02
Jun-22	2,040,000	1.02
Sep-22	2,050,000	1.02

Data Source: BSE

Mahindra Holidays & Resorts India is a part of the leisure and hospitality sector of the multinational Mahindra Group. The company offers conventional vacation ownership programs.

As Indians head out for local leisure, Mahindra Holidays & Resorts will be at the forefront enjoying the benefits. The effect can be seen on the company's share price performance in recent months.

Kedia remains bullish on Mahindra Holidays and continues to share witty tweet replies. Here's one:

Just $1bn for mahindra holidays? With due respect he sounds bearish. ?? https://t.co/JPHpXYo7VD

— Vijay Kedia (@VijayKedia1) September 21, 2022

Going forward, the company has big plans for inventory expansion. It will add around 1,000 rooms in the next two to three years.

The chairman also said that they are continuously looking at acquisition and lease opportunities.

Hotel stocks are booming since a long time now as revenge travel has boosted sentiment. The trend should continue for the next couple of quarters at least.

Which other stocks has Vijay Kedia invested in?

Apart from the above five, here are some other stocks which Vijay Kedia has invested in as of September 2022.

Please note, the source of holdings listed below is from Ace Equity and it may or may not be a complete list of holdings.

Company	Shareholder's Name	No of shares	Percentage (%)	CMP (Rs)
Sudarshan Chemical Industries Ltd.	Vijay Kishanlal Kedia	1,000,000	1.44	380
Repro India Ltd.	Vijay Kishanlal Kedia	901,491	7.09	393
Affordable Robotic & Automation Ltd.	Vijay Kedia	1,247,200	12.25	169
Neuland Laboratories Ltd.	KEDIA SECURITIES PRIVATE LIMITED	130,000	1.01	1,611
Talbros Automotive Components Ltd.	VIJAY KISHANLAL KEDIA	280,000	2.27	517
Ramco Systems Ltd.	VIJAY KISHANLAL KEDIA	500,000	1.62	266
Innovators Facade Systems Ltd.	Vijay Kedia	2,010,632	10.66	61
Atul Auto Ltd.	KEDIA SECURITIES PRIVATE LIMITED	321,512	1.47	289
Panasonic Energy India Company Ltd.	Vijay Kishanlal Kedia	93,004	1.24	267
Lykis Ltd.	VIJAY KISHANLAL KEDIA	524,710	2.71	47

Data Source: Ace Equity

Vijay was on Equitymaster's Investor Hour podcast recently, where he discussed his journey...successes and failures in stock picking.

We're sure you'll want to mark out many important points from the podcast and you'll think more deeply after listening to it.

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...