Best RK Damani Portfolio Stocks – Portfolio Analysis & Holdings

Best RK Damani Portfolio Stocks: Investing in the stock market can be a daunting task, given the sheer number of stocks available to choose from. To simplify things, many investors follow the portfolio of successful investors such as RK Damani, who has amassed a fortune through stock investments.

In this article, we will take a closer look at the Best RK Damani Portfolio Stocks and analyze their business, financials and more..

Who is RK Damani?

RK Damani is one of India’s most successful investors also known to have mentored the ace investor Rakesh Jhunjhunwala.

The ace investor started his career as a stockbroker after dropping out of college. Later on, he started investing in the market as realised that were could make real money.

RK Damani witnessed a major rise in his wealth by short-sellings when the Harshad Mehta Scam made the headlines in 1992. He later transitioned into Entrepreneurship and founded his own hypermarket chain, DMart.

The ace investor rose to the top with the issue of the DMart IPO which was a huge success. This success made him one of the richest men in India.

As per the March filings, RK Damani publicly holds 14 stocks with a net worth of around ₹1,74,805.9 Crores as of November 23, 2023.

5 Best RK Damani Portfolio Stocks 

We will now look at the 5 Best Stocks in RK Damani Portfolio based on the highest stakes he has held as of the September quarter, FY24.

1. Avenue Supermarts Ltd

Popularly known as Dmart, Avenue Supermarts was founded in 2002 by RK Damani himself. The company is a one-stop supermarket chain that offers a wide range of basic home and personal products under one roof to its customers. 

Each of the company’s stores stocks home utility products – including food, beauty products, toiletries, garments, kitchenware, bed and bath linen, home appliances and more – available at competitive prices.

During its launch, the company had set up its first store at Powai. Currently, it has established its stores in 337 locations across Maharashtra, Andhra Pradesh, Gujarat, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.

If we take a glance at the financials of the company, we can see that it has a net revenue of ₹ 42,839.56 Crores and a net profit of ₹ 2,378.34 Crores. 

The 4-year CAGR for sales and net profit stood at 20.97% and 27.41%, respectively. This indicates a steady growth in the overall performance of the company.

The RoCE and RoE of the company stood at 16.03% and 21.02% respectively. These figures suggest that the company has given good returns to shareholders’ equity and has also used the company resources efficiently.

Notably, the company maintains a debt-to-equity ratio of zero, signifying its reliance on internal funds for operations. 

As of Q2FY24, RK Dhamani holds a 67.20% stake in the company. This stake accounts for 43,74,44,720 shares and is worth Rs.166,229.0 Crores as of November 20, 2023.

2. VST Industries Ltd

VST Industries was founded in 1930 and is a subsidiary of British American Tobacco (BAT). Its business is the sale of tobacco products and related goods.

The Company has sales in India and outside India. Its products include cigarettes, unmanufactured tobacco, cut tobacco and other articles of paper and paper board. The manufacturing facility of the company is located at Hyderabad in Andhra Pradesh.

The company’s portfolio comprises several well-known brands such as Charminar, Charminar Special Filter, Charms Mini Kings, Charms Virginia Filter, XL Filter, and Shaan. These products cater to the lower end of the market and enjoy significant market share in the micro-segment of small-sized cigarettes (less than 60mm).

If we look at the financial performance of the company, it has reported a net revenue of ₹ 1,292.44 crores and a net profit of ₹ 326.98 crores in FY23.

Over the past four years, their sales and the profits of the company have grown at a CAGR of 4.14% and 9.57%, respectively.

The company has a ROE of 29.06% and RoCE of 38.06%, respectively. This indicates an optimum return to shareholders’ equity and an efficient use of company resources. 

Furthermore, the company has zero debt suggesting that operates mainly using its own funds. 

As per the September quarter of FY24, the ace investor holds 4,741,720 shares which account for a 30.70% stake in this company. These shares are worth Rs.1,515.9 crores as of November 20, 2023.

3. Advani Hotels & Resorts (India) Ltd

Established in 1987, Advani Hotels & Resorts (India) Limited is involved in the hospitality industry, offering short-term accommodation and restaurant and mobile food services.

The company operates primarily through its Caravela Beach Resort located in South Goa. This resort is a luxurious five-star establishment that spans 24 acres and includes 192 rooms, 4 Suites, and 6 Villas, each featuring private balconies.

The resort provides various types of accommodations, including garden view rooms, pool/ocean view rooms, oceanfront view rooms, deluxe suites, family villas, and presidential villas.

For dining, guests can enjoy a range of options at the resort, such as Castaways, Beach Hut, Carnaval, Sunset Bar, Island Bar, Atrium Bar, Lanai, and Cafe Cascada. The company also offers a variety of activities and amenities like a golf course, swimming pools, a spa, yoga sessions, a gym, and live music performances to enhance the guest experience.

Coming to the financials of the company, we can see that the company reported net sales of ₹ 98.49 crores and a net profit of ₹ 28.6 crores as of FY23.

This gives the company a remarkable 4-year CAGR growth of 8.86% and 25.94% on sales and net profits respectively.

In terms of efficiency, the company demonstrates strong performance with a RoE of 50.82% and a RoE of 67.76%, which are the highest among the list and signify an exceptionally effective use of company resources. 

Additionally, the company maintains a low debt-to-equity ratio of 0.01, indicating a reliance on its own funds to operate its business.

The ace investor has consistently held a 4.2% stake in the company over the last few quarters. This stake accounts for 19,30,009 shares and is worth Rs. 20.7 crores as of November 20, 2023.

4. Aptech Ltd

Aptech Ltd. is a pioneer in the non-formal vocational training business with over three decades of strong experience in vocational skilling and non-formal academic curriculum-based training programs. With a significant global presence, Aptech Ltd. has set its footprint in over 800 centres worldwide since its inception in 1986.

The company has diversified its portfolio into various sectors such as IT training, media & entertainment, retail & aviation, beauty & wellness, banking & finance, and preschool education.

It has successfully trained students, professionals, universities & corporations through its two main streams of business – Individual Training and Enterprise Business Group.

Furthermore, it also offers online training through ProAlley, specializing in graphic design, animation, VFX, and game design. 

In the fiscal year 2023, the company recorded a net revenue of ₹456.92 Crores, accompanied by a net profit of ₹ 67.69 Crores. 

Over the past four years, the company has achieved an impressive CAGR of 21.66% and 38.83% on net revenue and profits, respectively 

As of FY23, the company is debt-free. Additionally, an RoE of 29.3% and RoCE of 35.63% suggests that the company has given an excellent return to shareholders’ capital and also used its resources efficiently.

Over the past few quarters, the ace investor has continuously held a 3% position in the business. As of November 20, 2023, the value of this 17,57,317 share stake is Rs. 43.8 crores.

5. Sundaram Finance

Sundaram Finance, founded in 1954 is one of the leading names in the NBFC sector. It is a prominent member of the TSF group and was founded by Sri T. S. Santhanam.

The company started out with an objective of financing the purchase of commercial vehicles, the company has today grown into one of the most trusted financial services groups in India. 

Currently, it has a wide presence in Mutual Funds, General Insurance, Housing Finance, IT, Business Process Outsourcing, and Retail Distribution of a wide array of financial services and products.

It has a presence of nearly 1000 branches, over 2 lakh depositors, and 3 lakh commercial vehicle and car finance customers across the whole nation.

If we take a look at the financials of the bank, we can we that its revenue from the interest earned has increased from ₹3418.17 crores in FY19 to ₹4110.20 crores in FY23. 

On the other hand, it reported a decrease in net profit from ₹1126.31 crores in FY19 to ₹1088.31 crores in FY23.

For FY23, the company reported a GNPA of 2.10%, which indicates the portion of the NBFC loans or assets that are non-performing.

Coming to the return ratios, the bank reported an ROE and ROA of 14.9% and 2.8% respectively. This suggests that the company has earned a good return on shareholders’ capital and efficiently using its assets to earn income.

The ace investor has consistently held a 2.4% stake in the company over the last few quarters. This stake accounts for 26,30,434 shares and is worth Rs.852.4 crores as of November 20, 2023.

List of Best RK Damani Portfolio Stocks

The table below puts together more such stocks from RK Damani Portfolio along with the ones covered above.

In Closing

As we conclude our article on “Best RK Damani Portfolio Stocks” it is important to note that, the top 5 stocks mentioned above are based on the ace investors’ highest stake in the company. 

It is also worth noting that the precise timing and price at which they acquired their stocks are often undisclosed to the public. This can lead to a situation where we may invest in a fundamentally solid stock but at an unfavourable price, potentially impacting our overall returns.

Thus, investors should conduct their own analysis and not invest in these stocks solely based on the ace investors stake.

Written By Aaron Vas

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