Who is Vijay Kedia?
Vijay Kedia is founder of Kedia Securities private limited. He is regarded as one of the top investors in Indian Market. He is also known for some great Multi Bagger stocks like Atul Auto, Cera Sanitaryware and Aegis Logistics.
You can know more about him on the wikipedia page. In this article we will discuss the stocks and sectors he has invested in. This is current portfolio of his. We will be updating this portfolio with time to make sure you have the latest one.
Note sometimes share holding pattern is only way to figure out shares are investors are holding or shares they have quietly sold in market. So we will try to update the portfolio every three months. In between if there is any news then we will share that as well.
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Interesting Points about Portfolio
Below are some interesting observation about the portfolio. This will help you in your own trades. Also at the end of article we discuss about Investment Strategy of Vijay Kedia based on his stock picking.
1. Finance Sector is Under Represented
There were 5 companies from Finance Sector in portfolio of Rakesh Jhunjhunwala. Most people do suggest to have good percentage of your investment in Finance Sector. The rational being that India is emerging country and with growth in economy this sector will also pick up.
In contrast Vijay Kedia only has a single company Karnataka bank from that sector. Who says there is only one way to succeed in market.
2. No Large Cap companies
Now this is an interesting strategy by most Multi bagger hunters. They find companies still in early stages and ready to outperform the market. This is very common strategy used by many market pundits.
Most of the stock picks will fall under Mid cap or Small Cap. Some stocks are also Micro Cap. The number of Micro Cap companies in his portfolio is still good. Infact barring one or two companies most will fall under Small Cap or Micro Cap category.
3. No IT Company in portfolio
We also saw this in portfolio of Rakesh Jhunjhunwala. He also did not have a single IT stock in his portfolio barring First Source Solutions which is Staffing and BPO company.
Vijay Kedia also does not trust an IT stock. Is it due to lack of understanding in IT business or is it because the industry is too much exposed to economic fluctuations of US.
Whatever be the reason in both portfolio there is no IT stocks.
4. Main Sectors vs Obscure Sectors
Vijay Kedia does not invest much on main theme sectors like Steel, Metals, Finance, IT or Pharma for that matter. Astec Life Sciences is the only pharma company in the list. It is more of a Agro Chemical company and less of a Pharma Company.
These major sectors are overwhelmingly under represented in this portfolio. There is no Asset management or Financial Services sector company which is hot cake as of now. There is no Paints company either. Note Rakesh Jhunjhunwala portfolio also does not have Paint company in it.
The obscure sector where common investors do not invest or know company off are well represented in his portfolio. There are many companies which belong to that category in his portfolio. This proves his love for unique sectors with growth promise.
What Portfolio tells about Investment Strategy?
The investing style or stock picked by Vijay Kedia tells about differences between him and Rakesh jhunjhunwala. I will discuss the differences one by one and you can also read the article on Rakesh Jhunjhunwala in parallel to this one to understand the differences.
1. Diversification
Diversification is one of the key aspects of creating portfolio. People always advice to have diversified portfolio. If you carefully see no two stocks are from the same Sector.
The portfolio has touched different sectors and stocks are so different in business. He has picked stocks from Dry Cells sector also. This sector has only 3 major players (Panasonic Energy, Eveready and Nippo Batteries).
Many investors do not track or invest in such a small sector but he has taken note of the sector and invested in the same. Similar is the case with Cheviot company.
It is the largest Jute Company listed in Stock Exchanges. It has also found it’s way into portfolio of Vijay Kedia.
2. Put Money on Niche Sectors
There are many Niche players in the portfolio. If you see he has invested in Niche sectors. The sectors like Dry Cells, Rubber and Bearings are all Niche sectors having less number of players listed on stock exchanges.
Rubber Sector has no more than 4 or 5 major players listed on the exchanges. We have already discussed about Dry Cells. I will not repeat that discussion here again. Similarly Bearings also is niche sector with few major players listed.
The top players in Bearing market are Foreign Multinational companies. So he has put money on Indian players.
3. Invest on Emerging players
Except Cheviot which is the largest and flagship company in Jute Sector no other company in the list is top player in their sector. His investment in Cera is pretty old so I am not considering it.
So he puts his money on third or fourth major players of the sector. In some cases as mentioned above the sectors only have very few listed players to select from. In that case also he selected companies which are growing and have not reached MidCap status or became major player in the sector.
Conclusion
The investment style of Vijay Kedia proves his willingness to learn about not so popular themes and companies and bet on them. Common investors can get benefited by knowing about these companies which are not covered by Main stream media.
These under represented or unknown companies will help you prepare your own list of unknown companies. You can then add them to your watch list and analyze them in details before investing in it.
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