Now Trendlyne updates it everyday.
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Thanks a lot. In fact, that is the reason I have come to this thread. Soumya Malani is himself a star investor, and he has multibaggers like Vinati Feeds, which went up 70 times.
One of his daily review activities is tracking the investments of superstars. I have tried to do look up some of these investments, and they leave me cold. His latest purchase as per Trendlyne is Toss the Coin Ltd. So, I cross check it. The P/E of this stock is 64.8. Its ROCE is 19.3 %. The ROE is 14.4 %. So, would you even consider a stock where the PE is about four times the ROCE?
His next purchase is Slone Infosystems which appears to be more bearable. P/E is 18.3. ROCE is 37.9 %. ROE is 28.4 %. The free cash-flow is -15.68. A negative cash flow would be a red flag, wouldnât it? May be some capital expenditure is there, which I did not check. Sales have though increased. Mar 2023: 30cr., Mar 2024: 61cr, and Mar 2025: 211cr. The assets for these years have improved, as these are 12cr, 21cr, and 58cr for these years.
Yes, our opinion will not be entirely negative about Slone.
I then took Madhu Kela. He bought SG Finserve In March 25. The P/E is 35.0. ROCE is 6.83 %. The ROE 8.89 %. This
dissonance would normally ruin my appetite. The PEG Ratio is rather good at 0.25. But then the free cash flow is -456.86 cr. Any company with a cash flow in minus to that degree would make my heart sink. The financing profit for 23, 24 and 25 is 25, 105, and 111. The net profit similarly has increased rather dramatically from 18, to 79, and 81.
So, did he notice some breakout in 24?
His next earlier purchase is of Dec 24. Godavari Biorefineries Ltd. The screener does not give its PE. The ROCE is 5.79 %. The ROE is ROE -3.65 %. Well, wouldnât an ROE in negative make you cavil? So is the Cash flow, which is -65.22. But yes, Free Cash Flow for 3Yrs is âš 45.1 Cr. The operating profit is also declining in 23, 24 to 25 at 147,134, and104.
I have just taken two examples each from two famous investors. Only share common between me and some top investor to my knowledge (limited as it is) is Waaree Energies.
I am sure, buys of most top investors will make me scratch my head. So, may be a deep-dive may reveal their reasons, but then I would still not be throwing a good chunk of money on any such investment. I wonât deliberately take a khatara or
dilapidated bus.
So, please share your views. Do you track investments of superstars. Which ones? And what sort of homework do you do before agreeing to, so to say, this arranged marriage?
Sharmaji, can you tell us which stock pick by a great investor has recently drawn your attention to the extent of making you dabble in it?
I agree with much of what you say, but if we are going to risk our hard-earned money, given that I canât meet the promoters, I have not received a reply to any of my emails even, there has to be something visible about a company to make me invest my money in that.
I have bought Sai Life Sciences as lots of HNIs had invested in it. It has not done much since then, but then so has my rest of the portfolio.
Keeping my fingers crossed.
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Like you, I also couldnât understand their purchases for the longest time.
These guys invest in two type of companies. One, very small companies basis the perceived merit of the business, and Two, the companies that will turn around in their view. The second type is in the red on typical parameters and is bought on conviction.
Both types of companies come cheap.
Example of type one is Shaily or Carysil from Kacholiaâs portfolio, bought as a penny stock? Type two could be Vijay Kediaâs Atul Auto or Madhuâs Indostar.
Their position sizing is huge so they make lots of money, even from small movements.
I could be wrong but I doubt they get into too much of financial analysis beyond basics. The conviction perhaps comes from things like business runway or TAM or such broader things. Why? Because the first type has meaningless Market cap, where the price itself becomes meaningless if someone is keeping these for years maybe and hoping that the mcap will multiply many times. And second type, well, these are already in a bad shape regards financials.
Another way to look at it is, if the ROE and Cash Flows are great already, chances are itâs already discovered and should be too expensive to make sense. So the screen that turns out perfect businesses, those 12% YOY gems may not be worth investing for these investors it seems. In fact, many of these gems had been owned by them years ago.
Many of these investors are old time traders and they understand this thing inside out, the experience, that helps too. Itâs amazing to see these guys going with a gut feel about a business, thatâs their experience, not intuition. It appears they have a huge amount of common sense and know it when they find a business that will scale up.
One common thing about these investors is that they play a game of market cap. Many or most of them only buy micro caps and their portfolio is full of small caps, for example, look at Dolly Khannaâs holdings. It seems they donât even look at large caps or even mid caps.
I find that many of them maintain quite a sizable portfolio, in terms of number of stocks. Kacholia may have anywhere from 65-70 to 85 stocks. Then there are others, who own only handful of stocks, like Ramesh Damani. In any case, at their position sizing, owning too many may not affect things too much, it only helps distribute the risk. Itâs a bit different from a mainstream portfolio where you end up diluting the returns if you own too many. Here, each one of their holdings is a potential multibagger.
I am sure they take substantial losses, but then, the margin of safety is relatively high if we look at their typical entry prices, though they are not at all afraid to enter at high ratios if they have conviction. In any case, they only need couple of multipliers, and that takes care of everything and more.
These investors, they make investing look like an art.
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Well analysed.
Many of them are investing in unlisted stocks. Mostly such stocks are privately placed and are not available off-the-shelf. Anyway, we canât do the sort of scuttlebutt they do.
The interview of Rajesh Singla I have posted may interest you.
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How many will still persist following a big investor when his portfolio is down?
âMadh Kelaâs portfolio of 15 stocks is down 39% from âš4073 Cr in June to âš2494 Cr in Sept. His high-conviction stocks lost big like Indostar Capital (-31%), Nazara Tech (-22%), MK Ventures Capital (-18%) & Windsor Machines (-10%). Choice is the largest holding worth âš1538 Cr.â
As for me personally, I donât think Madhu Kela would be panicking. He is a shrewd investor.
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