Ramesh Damani Portfolio: Top 4 Stocks

Ramesh Damani has been known for his investments in unlisted and listed companies.

In today’s world, making a profit in the stock market can feel like an uphill battle. The ups and downs of the market can be dizzying, and it takes a lot of skill to succeed.

But fear not, because there is a way to learn from the best and potentially achieve great returns.

Following the footsteps of financial gurus and imitating their portfolios is becoming an increasingly popular approach.

By understanding their strategies and techniques, you can navigate the challenging times and hopefully outperform the market.

In this article, we will take a closer look at Ramesh Damani’s top 4 stock picks.

Ramesh Damani has been known for his investments in unlisted and listed companies.

Damani is known for high-quality value picks that can be retained in the portfolio for long periods.

He follows the Warren Buffett model of investing that favours companies with strong management credentials and processes.

As per the latest corporate shareholdings filed, Ramesh Damani publicly holds four stocks with a net worth of over Rs 1 bn.

Please note, the source of holdings listed below is from Ace Equity and it may or may not be a complete list of holdings.

#1 Garden Reach Shipbuilders

The first stock on this list is Garden Reach Shipbuilders and Engineers.

Ramesh Damani holds 1.1% stake in the defence company or 1.2 million (m) shares as of December 2022, according to the shareholding pattern of Garden Reach Shipbuilders.

Considering the company’s current market price of Rs 439 as of 3 March 2023, Ramesh Damani’s total value in Garden Reach Shipbuilders comes to around Rs 549 m.

Here’s how his holding has varied since June 2019.

After holding shares till December 2019, his name was missing from the company’s key shareholder list till the end of the September 2021 quarter, as his stake slipped below 1%.

Since his investment in the company in June 2019, shares of the company have rallied over 270%.

He has kept his stake in the engineering and shipbuilding company constant since December 2021.

Garden Reach Shipbuilders is a Miniratna PSU under the Ministry of Defence Government of India. The majority of the company’s revenues are derived from sales of shipbuilding products to the Indian Navy and the Indian Coast Guard.

For the December 2022 quarter, it reported a 43.6% YoY rise in revenue to Rs 6.9 bn. Its net profit for the quarter came in at Rs 639.2 m, flat from December 2021, on account of commodity inflation impacting margins.

The company is set to benefit from the government’s Atmanirbhar Bharat Abhiyan, which emphasised the need for self-reliance in the security space.

Further, with constant government push and rising exports, defence sector could produce the next set of multibagger stocks over the long run. Garden Reach Shipbuilders could also benefit from this.

#2 Goldiam International

The second company on this list is Goldiam International.

According to the latest shareholding pattern of Goldiam International, Ramesh Damani holds a 1.58% stake or 1.7 m shares of the total equity worth approximately Rs 240 m.

He is now the second biggest individual investor in the studded jewellery maker. Ace investor Mukul Mahavir Agarwal is also among the key public shareholders, with a 2.75% stake in Goldiam. Meanwhile, another guru Ashish Kacholia also owns a significant stake in the company.

Initially, Ramesh Damani only bought 1.3% equity in Goldiam International in April 2019. The deal at that time was valued at Rs 25.5 m. The shares were acquired through open market operation at Rs 85 per share.

Here’s how his holding has varied since June 2019.

Since his investment in the company in June 2019, shares of the company have rallied over 900%.

Damani has continuously increased his stake in Goldiam from 1.31% in June 2019 to 1.58% in December 2022.

The company has doubled its revenue in the past five years, mainly driven by the backward integration across the supply chain of lab-grown diamonds.

In the last two years, it acquired two companies to expand its diamond business in India and abroad.

Despite these acquisitions, it retained its debt-free status and has a healthy interest coverage ratio of 172.1x, making it among the company with solid fundamentals.

Another reason why Damani continues to hold this stock could be the positive outlook for the jewellery industry for 2023.

Post-Covid recovery, consumer behavior and new channels organically create favorable market conditions for the jewellery industry. The industry has registered a growth of 6.3% to Rs 2.3 trillion (tn) against Rs 2.1 tn for the same period last year.

For the December 2022 quarter, it reported an 18.3% YoY decline in revenue to Rs 1.8 bn. Its net profit for the quarter came in at Rs 288.4 m, down 27.1% YoY, on account of lower export demands.

Going forward, it plans to increase its reach in several countries such as the UK, Dubai, and Russia and is mainly focusing on the US market as 95% of its revenue come from US.

#3 Panama Petrochem

Third stock on this list is Panama Petrochem.

Ramesh Damani holds a 1.27% stake in the company or 0.6 million (m) shares of Panama Petrochem as of December 2022, according to the shareholding pattern of Panama Petrochem.

Considering the company’s current market price of Rs 330.1 as of 3 March 2023, Ramesh Damani’s total value in Panama comes to around Rs 210 m.

Here’s how his holding has varied since December 2021.

 Since his investment in December 2021, shares of the company have rallied over 300%.

Panama Petrochem Share Price Since Ramesh Damani Acquired Stake

Data Source: BSE

The smallcap refineries and petroproducts player has delivered good profit growth of 40% on a compound annual growth rate (CAGR) basis over the last five years.

The company is also debt free. 

Over the last five years, its market share has increased from 1.9% to 2.9%.

Also, as company caters to the Gulf Cooperation Council (GCC) and the Middle East and North Africa (MENA) regions, it enjoys a logistic advantage as it is situated on the port and has direct dedicated pipeline arrangements.

For the December 2022 quarter, it reported a 12.4% YoY rise in revenue to Rs 5.7 bn. Its net profit for the quarter came in at Rs 501.5 m, up 7.3% YoY, on account of higher purchase of traded goods.

To expand its activity, the company is looking forward to expanding its capacity.

#4 Vadivarhe Speciality Chemicals

The last stock on the list is Vadivarhe Speciality Chemicals.

Ramesh Damani holds a 1.27% stake or 0.6 million (m) shares of this specialty chemical company as of December 2022, according to the shareholding pattern of Vadivarhe Speciality Chemicals.

Considering the company’s current market price of Rs 34.2 as of 3 March 2023, Ramesh Damani’s total value in Vadivarhe Speciality Chemicals is around Rs 6.4 m.

Since his investment in the company in March 2022, shares of the company have gained 25%.

Vadivarhe Speciality Chemicals Share Price Since Ramesh Damani Acquired Stake

Data Source: Ace Equity

He has kept his stake in the specialty chemical company constant since he initially bought a stake. 

The chemical sector was affected as high energy costs, rising freight expenses, and skyrocketing raw material prices were some of the concerns which pressurised the margins of even the best chemical stocks in India.

For the December 2022 quarter, Vadivarhe Chemicals reported a 30.5% YoY rise in revenue to Rs 571 m. It reported a net loss for the quarter at Rs 290 m.

So there you go…these were the 4 shares held by Ramesh Damani as per the shareholding data filed with the exchanges.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com