Radhakishan Damani Portfolio

5paisa Research Team 5paisa Research Team 8th August 2022 - 07:00 pm

In a way Radhakishan Damani’s wealth creation has been synonymous with D-Mart (Avenue Supermarts). That is true because D-Mart alone accounts for over 97.2% 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 have shown. However, he is not known to churn his portfolio too aggressively and is more like a PE investor who stays put for the long term.

As of the close of December 2021, Radhakishan Damani held 14 stocks in his portfolio with a market value of Rs.177,053 crore as of 30th January 2022. His portfolio value has fallen nearly 23% in the last quarter as most of his top holdings have been under pressure. Here is a snapshot of his top holdings in rupee value terms as of close of December 2021 with the rupee value calculated as of 30-January 2022.

Radhakishan Damani's Portfolio as of Dec-21:

Stock Name	Percentage Holding	Holding Value	Holding Movement
Avenue Supermarts	65.2%	Rs.172,072cr	No Change
VST Industries	32.3%	Rs.1,569cr	No Change
India Cements	12.7%	Rs.879cr	No Change
Sundaram Finance	2.4%	Rs.584cr	No Change
Trent Ltd	1.5%	Rs.552cr	No Change
United Breweries	1.2%	Rs.493cr	No Change
3M India Ltd	1.5%	Rs.407cr	No Change
Blue Dart Express	1.5%	Rs.234cr	No Change
Metropolis Healthcare	1.2%	Rs.159cr	Reduced in Q3

Avenue Supermarts alone accounted for 97.2% 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 Q2

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 any of the stocks during the quarter. His portfolio overall took a hit of 23% in value terms as his major holdings like Avenue Supermarts and VST Industries fell sharply during the quarter on account of heavy FPI selling in the markets and the negative sentiments in the heavyweight stocks surrounding the proposed US Fed rate hike as well as the valuation concerns over Indian stocks compared to its Asian peers.

Check - Radhakishan Damani Portfolio - Sept-21

What stocks did Radhakishan Damani downsize in his portfolio?

Mr. Damani has been a focused long term investor and not known to churn his portfolio too often. In the Dec-21 quarter, he did make 2 changes on the downside to his portfolio. Damani reduced his stake in Mangalam Organics from 4.3% in the Sep-21 quarter to 2.2% in the Dec-21 quarter; a reduction of 210 basis points. His stake in Metropolis Health was also cut from 1.4% in the Sep-21 quarter end to 1.2% in the Dec-21 quarter; a sequential reduction of 20 basis points.

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 sharply higher. 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 Dec-20 and Dec-21, the value of his portfolio increased from Rs.121,553 crore to Rs.177,053 crore. This 45.7% appreciation in one year has shown a sharp fall on a sequential basis due to the underperformance of some of the major stocks in his portfolio like Avenue Supermarts and VST Industries in Q3.

b) Over a 3 year period i.e. between Dec-18 and Dec-21, the value of his portfolio showed accretion from Rs.72,945 crore to Rs.177,053 crore. That is compounded annual growth in portfolio value of 34.39% 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 Dec-21. The value of his portfolio showed accretion from Rs.30,316 crore to Rs.177,053 crore. That is compounded annual growth in portfolio value of 45% over the last 4 years and 9 months.

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