The investment strategies of superstar investors have unveiled an intriguing trend: a pronounced inclination toward companies with minimal or no debt, as highlighted by an analysis from Trendlyne.
Vijay Kedia, for instance, exemplifies this preference with his top three holdings—Atul Auto, Tejas Network, and Elecon Engineering—each boasting negligible debt or being entirely debt-free. This strategy, coupling low debt with robust revenue growth, has proven successful for Kedia.
Investing in mid and small-cap stocks, renowned for their higher risk-reward ratio, has yielded impressive returns for Kedia. Notably, two of his top three holdings have soared by nearly 100% over the last year, propelling a 65% and 40% increase in his net worth during Q1 and Q2FY24, respectively. Overall, his portfolio has surged by a notable 88% over the past year, securing him the second-best performer slot after Rekha Jhunjhunwala, according to Trendlyne's assessment.
Jhunjhunwala herself has witnessed an extraordinary surge in her net worth, primarily attributed to her inheritance of her late husband's portfolio and her consistent expansion of stakes in Titan. With Titan and Tata Motors as her top two holdings, delivering remarkable growth of 24% and 57% over the past year, she has seen a striking 209% rise in her net worth.
Despite pronounced volatility in Q3 and Q4FY23, most superstar investors experienced a substantial increase in their net worth over the past year. Their strategy of remaining invested and leveraging market downturns to add investments has notably contributed to this growth.
Other prominent investors like Ashish Kacholia and Anil Kumar Goel have witnessed substantial growth in their net worth, closely aligning with their top holdings that have exhibited revenue growth exceeding 100% over the past three years.
In contrast, Monish Parbai and Nemish Shah have witnessed more subdued growth, attributed to the relatively lower performance of their top holdings like Sunteck Realty and Lakshmi Machine Works.
Sunil Singhania's diversified portfolio across sectors has seen remarkable growth, with two of his top three holdings rising by over 100%, resulting in a net worth increase of more than 30% over the past year, as per Trendlyne's analysis.
However, Dolly Khanna and Radhakishan Damani have seen a decline in their net worth over the same period. Damani's portfolio heavily invested in Avenue Supermarts, which experienced an 8% dip, while Khanna reduced stakes in several holdings in Q3 and Q4FY23, leading to a decrease in her net worth.
(With Agency Inputs)