Sumeet Nagar Portfolio: Top 5 Stocks

Most retail investors lack the expertise needed to conduct such analysis, lack the time to conduct their own studies, or are not authorized to access privileged information.

However, a widely used investment technique known as copycat investing, coat-tailing or sidecar investing can help overcome this disadvantage.

Kottel investing is an investment strategy that mimics deals made by well-known and historically successful investors.

Under this investment strategy, retail investors blindly follow the investment patterns of star investors who have made a mark in the markets by generating exceptional returns in their investment portfolios.

Sumit NagarThe Co-Founder of Malabar Ventures LLC is one such expert with a stellar track record.

Malabar is a Foreign Portfolio Investor (FPI) with a special emphasis on small and mid-cap stocks from India.

Publicly available data shows that he owns 18 stocks whose net worth 30 billion (bn).

Moreover, these five stocks account for nearly 60% of Malabar India’s portfolio and are their biggest investments by value.

#1 Aptus Value Housing Finance India

The first stock in this list is Aptus Value Housing Finance India.

As per the shareholding pattern of Aptus Value Housing Finance India as of December 2022, Sumeet Nagar holds 3.9% stake or 19 million (M) shares in the finance company.

Considering the current market value of the company 246 as on 15 March 2023, Sumeet Nagar’s net worth at Aptus Value Housing Finance India is approx. 4.8 billion.

His reasoning for buying over the counter?

It has been one of the most profitable financial companies in India and one of the fastest growing in terms of profit. Aptus has an ROA (Return on Assets) of 8.8%, which is the highest ROA of any financial company in India.

Since his investment in the company, he has not made any change in his holding in Aptus Value Housing Finance India.

Since his investment, the company’s shares have risen by more than 65%.

He has kept his stake in the finance company stable since initially buying a stake in September 2022. This may be due to its increasing profitability over the years.

It has hardly had any write-offs or losses since its inception a decade ago, given the default which is the highest underwriting.

For the December 2023 quarter, Aptus Value Housing Finance reports 27% growth in interest income 81.5 bn, while net profit increased by 38.7% YoY 48 Bn.

The return on assets (RoA) for the December 2022 quarter stood at 8.71% and the return on equity (RoE) at 15.83%.

For the coming quarters, the business plans to continue its expansion in South due to limited competition in South India.

#2 Affle India

The second company in this list is Afel India.

As per the latest shareholding pattern of Affle India, Sumeet Nagar holds 6.72% of the total equity or 4 million shares.

Considering the current market value of the company 949.8 as on 15 March 2023, is the net worth of Sumeet Nagar in afl India 3.9 billion.

Explaining the rationale behind the purchase, Sumeet said,

Affle has been a great investment, and it was only about four years ago, but it is the quality of the company that has always outperformed the expectations set by them.

This is how Sumit Nagra’s holding has changed since September 2022.

After his investment in the company, the shares have wiped out more than 55% of his investment.

Even after declining profits, their stake in the company can be explained by the strong topline and EBITDA growth due to rising data traffic and increased internet penetration.

The firm has an in-house database versus a peer it outsources. This strengthens its technology offerings and M&A, resulting in better conversion user rates than peers.

For the December 2022 quarter, it reported 10.8% growth in revenue 3.7 bn, while net profit grew 14.8% YoY 690 m. This was due to strong momentum in the cost-per-converted user (CPU) business.

Given the strong demand and rising mobile consumption, the company plans to grow its revenue at a CAGR of 25-30% over the next five years.

#3 Safari Industry

Safari Industries is at the third place in this list.

As of December 2022, the shareholding pattern of Safari Industries shows that Sumeet Nagar holds 8.6% or a total of 2m shares in the company.

Considering the current market value of Safari Industries 1,895 as on 15 March 2023, making Sumeet Nagar net worth approx 3.8 billion.

Initially, he invested in the stock in December 2017 and steadily added more shares over the next few quarters.

Here’s how his holdings in Safari Industries have changed since December 2017.

Since his investment in the company in December 2017, the company’s shares have gained over 340%.

Several factors were responsible for the company’s growth trajectory.

The company is famous for selling travel bags. Hence its business got affected due to the lockdown. However, the travel sector boomed due to an improvement in demand and increased consumer confidence.

The demand for backpacks, ladies handbags and school bags bounced back after the resumption of normalcy and Safari was a big beneficiary.

The management indicated that the growth was on account of domestic holiday travel, wedding season, corporate gifting, and gradual reopening of schools and colleges.

For the December 2022 quarter, Safari Industries reports 48% growth in revenue 2 billion. Net profit for the quarter came in at 344m, 399.6% annual growth.

To double the capacity, Safari Industries has announced to increase its production capacity at its Gujarat plant to 0.3 million pieces per month.

#4 Hatsun Agricultural Products

The fourth stock in the list is Hatsun Agro Products.

As per the shareholding pattern of Hatsun Agro Products, Sumit Nagar holds 1.7% stake or 0.6 million (m) shares of this FMCG company as of December 2022.

Considering the current market value of the company 850 as on 15 March 2023, Sumeet Nagar’s net worth in Hatsun Agro Products is approx. 3.1 billion.

This is how his holding in Hatsun Agro Products has changed since March 2018.

Since his investment in the company in December 2017, the company’s shares have gained over 60%.

Sumeet Nagar is disinvesting stake in the company from September 2021. This could be due to the high level of debt in the books. The company is currently trading at a debt to equity ratio of 0.5x.

Due to macro factors impacting demand-supply, the segment witnessed an increase in input costs.

For December quarter 2022, the company reports 7% growth in revenue 16.9 bn, while net profit shrank by 3% YoY 464.3 M due to increase in milk procurement cost.

For the coming quarter, the company is planning to increase milk supply in South India.

#5 Vaibhav Global

The last stock in the list is Vaibhav Global.

As of December 2022, the shareholding pattern of Vaibhav Global shows that Sumeet Nagar holds 5.4% or a total of 8.8 million shares in the company.

Considering the current market value of Vaibhav Global 302 as on 15th March 2023, the net worth of Sumit Nagar in the company comes to approx. 2.6 billion.

His reasoning for buying over the counter?

Vaibhav performed extremely well during the pandemic and posted top-notch performance in terms of its earnings and as a result of the market performance, the price slightly outperformed itself. We own it, and we want to add more to it because it’s basically a good business.

Apart from Sumeet Nagar, Vijay Kedia and Ashish Kacholia have exposure to this stock.

Here’s how much his holdings have changed since March 2016.

Since his investment, Vaibhav Global’s stock has gained over 300%.

Their recent fall in the stock may be due to macro concerns.

First, sky-high inflation in the US and UK constrained consumer spending on discretionary goods. These markets contributed a major portion of Vaibhav Global’s revenue in 2022.

Another factor affecting the company was revenge trip, As economies opened up, people shifted to in-person shopping.

In its investor presentation, Vaibhav Global’s management explained that the travel restrictions of the past two years have pushed people to go out for shopping instead, affecting all digital retailers like Vaibhav Global.

However, despite all these constraints, the company has made several investments in the business.

For the December 2022 quarter, the company reported a 3.6% decline in revenue 7.2 bn, while profit declined 43.9% YoY 389.1m due to low demand in the international market.

The management further supported the sentiment as they are now expecting margin improvement in the second half of the current financial year.

What are the other stocks in Sumeet Nagar’s portfolio?

Apart from the above five, here are some other stocks that are part of the portfolio of Investment Managers of Malabar India by Sumit Nagar.

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

Recently we also wrote Ramesh Damani Portfolio: Top 4 Stocks And Rakesh Jhunjhunwala & Associates Portfolio: Top 5 Stocks,

Stay tuned to get more updates about Investment Gurus as we will be covering more pieces like this in the coming weeks.

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

This article is syndicated equitymaster.com