Most retail investors lack the necessary expertise, lack the time to conduct their own research, or are not authorised to access privileged information.
However, a popular investment strategy known as copycat investing, coat-tailing, or sidecar investing can help to overcome this disadvantage.
Kottel investing is an investment strategy that imitates the transactions of well-known and historically successful investors.
Retail investors blindly follow the investment patterns of star investors who have made a name for themselves in the markets by generating exceptional returns in their investment portfolios.
Sumeet Nagar, Co-Founder of Malabar Ventures LLC, is one such seasoned professional.
Malabar is a Foreign Portfolio Investor (FPI) focused on Indian small and mid-cap stocks.
According to publicly available information, he owns 18 stocks worth $30 billion (bn).
Furthermore, these five stocks account for nearly 60% of Malabar India’s portfolio and are their most valuable investments.
Aptus Value Housing Finance India is ranked first.
Aptus Value Housing Finance India is the first stock on this list.
Sumeet Nagar owns 3.9% of Aptus Value Housing Finance India, or 19 million (M) shares, as of December 2022, according to the finance company’s shareholding pattern.
Sumeet Nagar’s net worth at Aptus Value Housing Finance India is approximately 4.8 billion based on the current market value of the company 246 as of 15 March 2023.
His justification for buying over the counter?
It has been one of India’s most profitable financial firms and one of the fastest growing in terms of profit. Aptus has the highest ROA (Return on Assets) of any financial company in India, at 8.8%.
He has not changed his position in Aptus Value Housing Finance India since his investment in the company.
Since his investment, the company’s shares have risen by more than 65%.
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Aptus Value Property Finance
Since purchasing a stake in the finance company in September 2022, he has kept his stake stable. This could be attributed to its increasing profitability over time.
Given the default, which is the highest underwriting, it has had almost no write-offs or losses since its inception a decade ago.
Aptus Value Housing Finance reports a 27% increase in interest income (81.5 billion) for the December 2023 quarter, while net profit increased by 38.7% year on year to 48 billion.
For the December 2022 quarter, the return on assets (RoA) was 8.71% and the return on equity (RoE) was 15.83%.
Due to the lack of competition in South India, the company intends to continue its expansion in the coming quarters.
#2 Affle India
Afel India is the second company on this list.
Sumeet Nagar owns 6.72% of Affle India’s total equity, or 4 million shares, according to the company’s most recent shareholding pattern.
Sumeet Nagar’s net worth in afl India is 3.9 billion based on the company’s current market value of $949.8 as of 15 March 2023.
Sumeet explained the reasoning behind the purchase, saying,
Affle has been a great investment, and it was only about four years ago, but the company’s quality has always outperformed their expectations.
Since September 2022, this is how Sumit Nagra’s holding has changed.
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(EquityMaster)
The shares have wiped out more than 55% of his investment in the company since his investment.
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Affle India’s share price has increased since acquiring Sumeet Nagar’s stake.
Even with declining profits, their stake in the company can be explained by the company’s strong topline and EBITDA growth as a result of increased data traffic and internet penetration.
In comparison to a peer, the firm has an in-house database. This improves its technology offerings and M&A, resulting in higher conversion rates than competitors.
For the December 2022 quarter, revenue increased by 10.8% to 3.7 billion, while net profit increased by 14.8% to 690 million. This was because the cost-per-converted-user (CPU) business was gaining traction.
Given the high demand and rising mobile consumption, the company anticipates revenue growth of 25-30% over the next five years.
#3 Safari Industry
Safari Industries is ranked third on this list.
Sumeet Nagar owns 8.6% of Safari Industries, or 2 million shares, as of December 2022, according to the company’s shareholding pattern.
Sumeet Nagar’s net worth is approximately 3.8 billion based on the current market value of Safari Industries 1,895 as of 15 March 2023.
He began investing in the stock in December 2017 and gradually increased his holdings over the next few quarters.
Here’s how his Safari Industries holdings have changed since December 2017.
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Since his investment in the company in December 2017, its shares have increased by more than 340%.
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Safari Industries’ share price following the acquisition of Sumeet Nagar’s stake
Several factors contributed to the company’s rapid growth.
The company is well-known for its travel bags. As a result, the lockdown had an impact on its business. However, the travel sector boomed due to an improvement in demand and increased consumer confidence.
After the return to normalcy, demand for backpacks, ladies handbags, and school bags increased, and Safari benefited greatly.
According to management, the increase was due to domestic holiday travel, wedding season, corporate gifting, and the gradual reopening of schools and colleges.
Safari Industries reports a 48% increase in revenue of $2 billion for the December 2022 quarter. The net profit for the quarter was 344 million, representing a 399.6% increase year on year.
Safari Industries has announced plans to double its production capacity at its Gujarat plant to 0.3 million pieces per month.
#4 Hatsun Agricultural Products
Hatsun Agro Products is the fourth stock on the list.
Sumit Nagar owns 1.7% of Hatsun Agro Products, or 0.6 million (m) shares, as of December 2022, according to the company’s shareholding pattern.
Sumeet Nagar’s net worth in Hatsun Agro Products is approximately 3.1 billion based on the company’s current market value of 850 as of 15 March 2023.
Since March 2018, this is how his stake in Hatsun Agro Products has changed.
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(EquityMaster)
Since his investment in the company in December 2017, its shares have increased by more than 60%.
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Hutson Agro Products share price since Sumeet Nagar’s acquisition of a stake
Sumeet Nagar will sell his stake in the company in September 2021. This could be due to the company’s high level of debt. The company currently has a debt-to-equity ratio of 0.5x.
Input costs increased in the segment as a result of macroeconomic factors influencing demand-supply.
The company reports a 7% increase in revenue (16.9 billion) for the December quarter 2022, but a 3% decrease in net profit (464.3 million) due to an increase in milk procurement costs.
The company intends to increase milk supply in South India in the coming quarter.
#5 Vaibhav Global
The last stock in the list is Vaibhav Global.
As of December 2022, the shareholding pattern of Vaibhav Global shows that Sumeet Nagar holds 5.4% or a total of 8.8 million shares in the company.
Sumit Nagar’s net worth in the company is approximately 2.6 billion based on the current market value of Vaibhav Global 302 as of March 15, 2023.
His justification for buying over the counter?
During the pandemic, Vaibhav performed exceptionally well in terms of earnings, and the price slightly outperformed itself as a result of market performance. We own it, and we want to expand it because it’s a good business.
In addition to Sumeet Nagar, Vijay Kedia, and Ashish Kacholia
In addition to Sumeet Nagar, Vijay Kedia and Ashish Kacholia have positions in this stock.
This graph shows how his holdings have changed since March 2016.
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Vaibhav Global’s stock has increased by more than 300% since his investment.
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Their recent stock decline could be attributed to macroeconomic concerns.
First, high inflation in the United States and the United Kingdom limited consumer spending on discretionary goods. In 2022, these markets will account for a sizable portion of Vaibhav Global’s revenue.
Revenge travel was another factor that had an impact on the company. People shifted to in-person shopping as economies opened up.
Vaibhav Global’s management explained in its investor presentation that the past two years’ travel restrictions have pushed people to go shopping instead, affecting all digital retailers like Vaibhav Global.
Despite these constraints, the company has made a number of investments in the business.
The company reported a 3.6% decline in revenue to 7.2 billion in the December 2022 quarter, while profit fell 43.9% year on year to 389.1 million due to low demand in the international market.
The management team backed up the sentiment by predicting increased margins in the second half of the current fiscal year.
What other stocks does Sumeet Nagar have in his portfolio?
Aside from the five mentioned above, here are some other stocks in Sumit Nagar’s portfolio at Investment Managers of Malabar India.
Please keep in mind that the holdings listed below are sourced from Ace Equity and may not be an exhaustive list of holdings.
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Ace Equity provided the data.
We also published Ramesh Damani Portfolio: Top 4 Stocks and Rakesh Jhunjhunwala & Associates Portfolio: Top 5 Stocks recently.
Stay tuned for more updates on Investment Gurus in the coming weeks, as we will be covering more topics like this.
This article is provided solely for informational purposes. This is not an investment recommendation and should not be construed as such.
This is a syndicated article from equitymaster.com.
