Radhakishan Damani Portfolio: March 2022

5paisa Research Team 5paisa Research Team 8th August 2022 - 07:03 pm

In a way Radhakishan Damani’s wealth creation has been synonymous with D-Mart (Avenue Supermarts), which listed on the bourses only in 2017. That is true because D-Mart alone accounts for over 97.12% of the total portfolio value of his holdings.

However, Damani is also known to be one of the most astute value investors as some of his recent acquisitions like India Cements and Sundaram Finance have shown.

Incidentally is more of a buy and hold strategist and he is not known to churn his portfolio too aggressively and is more like a PE investor who holds on for the long haul.

As of the close of March 2022, Radhakishan Damani held 14 stocks in his portfolio with a market value of Rs.171,440 crore valued as of 30th April 2022. His portfolio value has fallen in the last 2 quarters as most of his top holdings have been under pressure, including the formidable D-Mart.

Here is a snapshot of his top holdings in rupee value terms as of close of March 2022 with the rupee value calculated as of 30th April 2022.

Stock Name	Percentage Holding	Holding Value	Holding Movement
Avenue Supermarts	65.2%	Rs.166,510 cr	No Change
VST Industries	32.3%	Rs.1,610 cr	Increased in Q4
India Cements	12.7%	Rs.812 cr	No Change
Sundaram Finance	1.5%	Rs.666 cr	No Change
Trent Ltd	2.4%	Rs.529 cr	No Change
United Breweries	1.2%	Rs.507 cr	No Change
3M India Ltd	1.5%	Rs.333 cr	No Change
Blue Dart Express	1.4%	Rs.227 cr	Reduced in Q4
Metropolis Healthcare	1.1%	Rs.140 cr	Reduced in Q4

Avenue Supermarts alone accounted for 97.12% of the total portfolio and the top 3 stocks comprising of Avenue Supermarts, VST Industries and India Cements jointly accounted for 98.6% of the overall portfolio of Radhakishan Damani

Stocks where Radhakishan Damani added stake in Q4

Let us look at the fresh addition of stocks to the portfolio of Radhakishan Damani during the Dec-21 quarter, if any. Radhakishan Damani did not increase his stake in most of the stocks during the quarter.

However he did make a minor accretion to his holdings in VST Industries which went up from 32.3% to 32.4% during the Mar-22 quarter. Damani also made a small accretion to his holdings in United Breweries, the former Vijay Mallya company, but that was quite a small change in holdings and insignificant in the overall scheme of things.

What stocks did Radhakishan Damani downsize in his portfolio in Q4?

Mr. Damani has been a focused long term investor and not known in investment circles to churn his portfolio too often and too aggressively. In the Mar-22 quarter, he did make 2 changes on the downside to his portfolio. Damani reduced his stake in logistics company Blue Dart Express by 10 basis points from 1.5% stake to 1.4% stake.

At the same time, he also cut his holdings in Metropolis Healthcare Ltd by 10 basis points from 1.2% stake to 1.1% stake. In the case of all the other stocks in his portfolio, there has been no change in ownership. During the quarter, there was no major fresh addition or total exit from any stock in the portfolio of Radhakishan Damani.

Radhakishan Damani Portfolio Performance over different time periods?

In the case of Damani, looking at his equity portfolio prior to March 2017 may not add much value as the stock of Avenue Supermarts was only listed on the bourses in March 2017. Prior to that, his listed portfolio was very small.

Avenue Supermarts is the one stock that has driven his portfolio value and as is evident from his portfolio mix, that one stock alone is over 97% of his portfolio value. We will look at 3 different time periods to evaluate the portfolio of Radhakishan Damani.

a) Over the last one year period i.e., between Mar-21 and Mar-22, the value of his portfolio increased from Rs.125,461 crore to Rs.171,440 crore. That is 36.7% appreciation in one year.

It must be mentioned here that most of the appreciation in the portfolio of Radhakishan Damani happened in the first two quarters of FY22 with the last 2 quarters being relatively tepid in terms of portfolio performance.

b) Over a 3 year period i.e. between Mar-19 and Mar-22, the value of his portfolio showed accretion from Rs.66,812 crore to Rs.171,440 crore. That is compounded annual growth in portfolio value of 36.9% over the last 3 years.

c) We also look at his portfolio since the listing of Avenue Supermarts in 2017 i.e. between Mar-17 and Mar-22 over a five year period. The value of his portfolio showed accretion from Rs.30,316 crore to Rs.171,440 crore. That is compounded annual growth in portfolio value of 41.4% over the last 5 years.