Dilipkumar Lakhi: Analysing the stocks and investment strategy of this famed investor

Welspun Speciality Solutions

Welspun Specialty Solutions is a manufacturer of best in class Alloy & Stainless-Steel products. It is the only integrated producer of Quality Stainless Steel Pipes & Tubes right from steelmaking to the finished products.

As per information on the BSE, this stock was purchased by Dilipkumar Lakhi in May 2018 and the ace investor has a 23% holding in the company amounting to Rs 164.9 crore as of September 2021. The stock has given a 1-year return of 49.89% and 16.95% on a YTD basis.

Welspun Enterprises

Welspun Enterprises (WEL), part of the Welspun Group, is an operating company as well as a holding company. Its key activity is in the infrastructure business where it develops and operates PPP projects in various sectors like roads, water, and urban infrastructure.

As per information on the BSE, Dilipkumar Lakhi has a total stake of 7% in this company amounting to Rs 101.50 crore as of September 2021. The stock has given a 1-year return of 31.34% and 13.25% on a YTD basis.

Aro Granite Industries

Aro Granite Industries Ltd. engages in the manufacture and export of granite tiles and slabs. It exports its products to North America, South America, Europe, and Far East markets. It is the largest exporter of processed granite in India, with a production capacity of 1 million Square-meters/year.

As per information on the BSE, Dilipkumar Lakhi has a total holding of 6.30% in this company amounting to Rs 6.8 crore as on September 2021. The stock has given a 1-year return of 130.74% and 44.07% on a YTD basis.

Unitech – 

Unitech Ltd. is engaged in real estate development including related activities of construction, contracts, consultancy and management services, hotels, manufacturing of power transmission and telecom towers and property management.

As per information on the BSE, Dilipkumar Lakhi has a total holding of 4.90% in this company amounting to Rs 23.8 crore as on September 2021. The stock has given a 1-year return of 34.56% and a negative return of 2.66% on a YTD basis.

Almondz Global Securities

Almondz Global Securities Ltd. operates as an investment banking company. Its area of services includes equity capital market, debt capital market, private equity and M&A, infrastructure advisory, equity broking & wealth management, debt portfolio management services and distribution.

As per information on the BSE, Dilipkumar Lakhi has a total holding of 4.50% in this company amounting to Rs 16.3 crore as on September 2021. The stock has given a 1-year return of 929.68% and a return of 539.3% on a YTD basis.

What does the Portfolio tell us about the Investment Strategy?

There are multiple things stock-picking can tell us about the investment style. Based on the stock picks of Dilipkumar Lekhi we can observe that this ace investors investment strategy includes avoiding popular segments like banks, automobiles, and pharma. Instead, he prefers investing in the least competitive segments, and relies on reversals and contra calls.

The portfolio does not show any sort of inclination towards the companies ranging from the Pharma, Private Banks or Automobile sector, unlike the portfolio of many other top investors like Rakesh Jhunjhunwala. However, Dilipkumar Lakhi likes to invest into the less popular sectors like media sector, printing ink and paper sector, while also investing into cyclical sectors such as steel.

There are two real estate companies in his portfolio, including the heavily beaten down Unitech stock. This is an excellent example of Contra call and an investment in a beaten down stock.