Hey there, fellow investors and financial enthusiasts! Today, we’re diving into the fascinating world of one of India’s most legendary stock market gurus, Raamdeo Agarwal, and taking an exclusive peek into his prized portfolio holdings. If you’ve ever wondered what sets successful investors apart from the rest, you’re in for a treat.
Raamdeo Agarwal, a name that resonates with every avid investor, has carved a niche for himself in the world of finance. With an uncanny ability to spot hidden gems and identify long-term winners, he’s amassed a stellar track record that leaves us all in awe. Now, we get to explore the very heart of his investment strategy – the carefully curated collection of stocks that make up his portfolio.
So, whether you’re a seasoned investor looking for new inspiration or a budding enthusiast eager to learn from the best, this article is your golden ticket to uncovering the top stocks nestled within Raamdeo Agarwal’s esteemed portfolio. Ready to embark on this enlightening journey? Let’s dive right in!
In this article, we’ll take an in-depth look at the top stocks that Raamdeo Agarwal holds dear in his esteemed portfolio and gain insights into the strategies that have shaped his remarkable success.
Who is Raamdeo Agrawal?
Raamdeo Agrawal is a prominent Indian businessman, Chartered Accountant, and stock market investor. He co-founded Motilal Oswal Financial Services Limited (MOFSL) and has been a pivotal figure in India’s stock exchange market. Agrawal is well-known for his investment strategies, drawing inspiration from Warren Buffett, and is the mastermind behind the annual Motilal Oswal Wealth Creation Study. Additionally, he’s an author and a key voice in the Indian financial sector.
5 Lesser Known Facts About Raamdeo Agrawal
- He started his career in the stock market with just Rs 4-5 lakhs handed over by his brother, Sukhdeo, and built a substantial portfolio from this initial amount.
- Raamdeo Agrawal and Motilal Oswal, despite living in the same hostel during their student days, only became friends much later.
- Agrawal attributes his understanding of the power of compounding to Chandrakant Sampat, informally recognized as India’s first value investor.
- In a harrowing event in 2005, Agrawal’s son Vaibhav was kidnapped, leading to a 15-day-long rescue operation spanning multiple states in India.
- Besides being an influential figure in the stock market, Agrawal is also a voracious reader, drawing insights from renowned books such as “Common Stocks and Uncommon Profits” by Philip Fisher and “Intelligent Investor” by Benjamin Graham.
Raamdeo Agrawal’s Best Investment
One of Agrawal’s most notable investments was in Hero MotoCorp (then Hero Honda). In 1995, he invested around Rs 10 lakh to buy shares priced at Rs 30 each. Holding onto them for 20 years, their value skyrocketed to Rs 2,600 apiece by 2015, earning him significant returns.
Raamdeo Agrawal’s Top Stock Holdings
Motilal Oswal Financial Services Ltd.
- Market Cap: ₹ 13,339 Cr.
- Current Price: ₹ 900
- Stock P/E: 9.35
- Promoter’s Holdings: 69.66 %
Motilal Oswal Financial Services Ltd. (MOFSL) is one of India’s most prominent diversified financial services companies. Founded in 1987 by Motilal Oswal and Raamdeo Agrawal, the firm has grown exponentially from its humble beginnings to become a leader in areas such as wealth management, retail broking, institutional equities, and asset management. With its headquarters in Mumbai, the company’s dedication to research and customer-centric approach has set it apart in the Indian financial sector.
One of MOFSL’s distinguishing features is its strong emphasis on equity research. Over the years, the company’s research reports and analysis have gained significant respect and recognition not only in India but also among global investors. This commitment to thorough research has played an instrumental role in shaping their investment strategies, allowing them to offer value propositions to their clients. The annual “Wealth Creation Study” released by the company is a testament to its expertise in recognizing and analyzing trends in the market.
In addition to research, MOFSL has consistently focused on leveraging technology to enhance its services. Its digital platforms and tools have enabled clients to access market data, execute trades, and manage their portfolios with ease and efficiency. Over the years, as the financial landscape in India evolved, MOFSL has successfully diversified its offerings, ranging from mutual funds to commodities trading, meeting the varied needs of its vast client base.
Lastly, the company’s emphasis on ethical business practices, transparency, and a customer-first approach has earned it immense trust and credibility. These foundational values, combined with its expertise and innovation, have made Motilal Oswal Financial Services Ltd. a stalwart in the Indian financial industry.
Company Market Share
- Market share of Capital Markets 5.7%.
- Market share of F&O stands at 3.2% .
Asset Under Management
As on, July 2022:
- Broking- ₹ 172 Bn
- AMC- ₹ 434Bn
- Home Finance – ₹ 35.5 Bn
Wealth AUM was at an all-time high in FY2022 at Rs 34,389 crore, up 36% YoY.
Key insights
- Active clients have registered 43% YoY growth at 0.93 mn as of June 2022. 83% of new clients acquired from Tier II & III cities.
- IB revenue was down 98% QoQ due to muted market activity.
- MOHFL’s Geographic Reach – Presence across 106 locations in 12 states/union territories.
- Over FY17-FY22, MOFSL’s consolidated revenue expanded at a 17% CAGR to INR43.2 billion.
Maharashtra Scooters Ltd.
- Market Cap: ₹ 7,947 Cr.
- Current Price: ₹ 6,953
- Stock P/E: 40.9
- Promoter’s Holdings: 51.00 %
Maharashtra Scooters Ltd. (MSL) is an India-based company that was originally set up as a joint venture between the Government of Maharashtra and Bajaj Auto Limited in the late 1970s. The company was established with the primary objective of manufacturing geared scooters for the Indian market. Over the years, its flagship products, including models like the “Priya”, became a familiar sight on Indian roads, reflecting the popularity and demand for affordable two-wheeled transportation during that era.
However, as market dynamics changed and consumer preferences shifted, the relevance of geared scooters began to wane. Despite facing challenges in the competitive landscape, MSL made strategic decisions that allowed it to navigate the evolving market. For instance, by the late 1990s and early 2000s, the company underwent a transition and shifted its focus from manufacturing to investments, mainly by investing in Bajaj group companies.
This shift in strategy from manufacturing to investments turned out to be fruitful for Maharashtra Scooters. Their stake in various Bajaj group companies provided them with significant returns, which has been instrumental in ensuring their financial sustainability. Despite the changing tides of the auto industry, MSL stands as a testament to the importance of adaptability and strategic foresight in business.
Company History
- Initially, the Co manufactured the “Priya” brand of motorized geared scooters, then in technical collaboration with erstwhile BAL, it started manufacturing “Bajaj Super” & “Bajaj Chetak” models of scooters. From 2006 the Company discontinued the production of geared scooters. Currently, it manufactures pressure die casting dies, jigs, and fixtures.
Revenue Split
- Investment : 93% in FY21 vs 84% in FY20
- Manufacturing : 7% in FY21 vs 16% in FY20
Investment Portfolio (FY21)
- The Co has a net investment of Rs. 17189 crores as of March 2021. It includes holdings in Bajaj Auto, Bajaj Finance, Bajaj Finserv and Bajaj Holdings & Investment. The Co has also invested in various debentures and mutual funds.
Change in the status of the Company
- After the acquisition of a 27% stake of MSL by Bajaj Holdings & Investment Ltd (BHIL) from Western Maharashtra Development Corporation (WMDC) Ltd., the Company has become a subsidiary of BHIL with effect from 17 June 2019.
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Conclusion
In conclusion, Raamdeo Agarwal’s portfolio reflects a well-balanced mix of established giants and promising hidden gems. His investment strategy is grounded in the belief in India’s long-term growth potential and a keen eye for companies with strong fundamentals and market positioning. By taking inspiration from his portfolio holdings, investors can gain valuable insights into constructing their own successful investment strategies and embark on their journey to financial success. Remember, while studying the portfolios of renowned investors can be enlightening, it’s essential to conduct thorough research and align investments with your unique financial goals and risk tolerance. Happy investing!
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