"Whenever I make an investment, I take advice from Rakesh," said Kedia. That includes the preferential stake he has just taken in Atul Auto, announced by the company on the BSE website on Wednesday.
Subject to the company's board approval, Kedia will be allotted 5,00,000 shares, taking his post-issue stake in the company to 13.92 per cent.
Atul Auto manufactures three-wheelers and competes with Bajaj Auto and Piaggio. While three-wheeler sales in India stand at 4 lakh per annum, Atul Auto has the capacity to manufacture 35,000. It is this and the fall in the stock that has made Kedia increase his stake in the company, from the 5.5 per cent he held earlier.
"It will not be difficult to sell 35,000 three-wheelers in a 4 lakh per annum market," he said. Besides, the company, which had to recall 2,000 vehicles last year for faulty engines it had acquired from Lamborghini, has now terminated its agreement with the Italian engine supplier.
"Greaves Cotton will now supply all the engines, and there will be a transformation in the company. It is a prudent time to buy for the long term," Kedia said.
Kedia, who invests only for himself, and does not take positions on clients' behalf, said he owns significant stakes in around 25 companies. Aegis Logistics (3 per cent), Tata-promoted TRF Ltd (1.5 per cent), Cera Sanitaryware (3.3 per cent) and Stewarts and Lloyds of India (6.2 per cent) are some of them, according to data on shareholding pattern available on stock exchange websites.
Explaining his interest in mid-caps, Kedia said: "They are usually available at much cheaper valuations, and if it's a good company, they tend to rise much faster," he said. Lower liquidity in them compared with large-caps, he said, sometimes works to his advantage.
Kedia also indulges in a little bit of speculation. "Trading has nothing to do with fundamentals or the balance sheet. To be successful in trading, you need to be an expert timer. In trading, I don't follow advice or tips; I just rely on my intuition," he said.
That is different from his investment philosophy. "As an investor, I am trying to copy Rakesh. I am just 1 per cent of him in knowledge, wealth and the contacts, but I take inspiration from him," Kedia said.
Kedia talks of many instances when he had gone to Jhunjhunwala's office, house or his favourite haunt at Geoffrey's on Mumbai's Marine Drive, to seek advice.
"He encourages me and gives me the confidence to play for larger stakes in companies. Earlier, I was afraid to buy more than 5 per cent in any single entity," he said. Jhunjhunwala could not be contacted for this article.
On markets and its turmoil, this high-stakes player is bearish for the near term. "The markets can correct a maximum of 20 per cent from here. Only the new year will bring some hope," he said. But over the longer term — by December 2010 — Kedia expects the Sensex to go up to 30,000.
What should retail investors do..
- Stocks that saw least correction
- Stocks for long-term investments in 2008
- Damani's advice to investors
- Stocks to pick - Tata steel, TCS, Petronet LNG
- List of the BSE-100 stocks losing most from their ...
- Lessons from January 2008
- Zen Technologies:-The scrip to watch out for in th...
- Find value picks from the day's biggest losers
- Market update - big fall of 1400 points sector wis...
- Black Monday again-Biggest ever point fall for mkt...
- BSE smallcap index: Top gainers and losers
- Stocks that hit their 52-week lows in todays fall
- Sensex to see 25K by 2008-end
- Major IT stocks touched their 52-week lows
- Not all small stocks caught in turbulence
- HOT STOCK : GODREJ INDUSTRIES
- JK LAKSHMI CEMENT LIMITED : Potential MULTIBAGGER
- Parsvnath Dev eyes 120-140% bottomline growth - Pr...
- For IT, numbers say it all
- Stocks to pick: Reliance capital,Axis Bank, Moser ...
- Rakesh Jhunjhunwala's latest Portfolio
- Tata Nano may expand market by 65%
- Nano will drive Tata Motors to top position
- RIL ready with $8bn for coal-based fuel project
- Rosy Future - Stock Focus - Karuturi networks
- Multi Bagger - XL Telecom & Energy
- Revision in BSE Mid-Cap and BSE Small-Cap Indices
- Future Group to hive off Big Bazaar
- Brokers bullish on Syndicate Bank, Omaxe, MnM
- Multi Bagger: Alps Industries
- Tata's 1-lakh a reality- Automobiles
- ANALYSIS OF NOIDA TOLL Bridge
- SPEL SEMICONDUCTOR LTD., CHENNAI
- SUNDARAM CLAYTON LTD. (TVS GROUP)
- ALPS INDUSTRIES - Recommended by tulsian
- RAKESH JHUNJHUNWALA HAS ENTERED in ROCKET STOCK…. ...
- Carol info - a look at wockhard company
- gremach infrastructure : relook
- FIs pick up 10% in Piramal arm Peninsula Land
- Stock Picks for 2008-Power Grid corp
- Who all are the biggest winners in the market?- In...
- Good Twenty stocks for 2008
- Billionaires bet big on India's bio-fuel
- Sensex target for 2008 at 22k-24k
- Watch out for the Street signs- Is This As Good As...
- HOW TO SELECT SHARES FOR YOUR PORTFOLIO AN INTERES...
- TISCO (Tata Steel)- TARGET 1115+
- Quotes from Warren Buffett
- Sunil Hi-Tech net zooms 4 times in Sep`07 qtr
- Post-block deal: Are HOEC, Amtek India a buy?
- Selan Oil Exploration: Soaked in Crude
- Managing Investments - Benefits of Investing Early...
- NELCO BRIGHT FUTURE AHEAD
- Nelco - Tata Group's Automation
- Why should you invest in mid-cap stocks?