Sunil Singhania Portfolio: Top 5 Stocks

If you had invested Rs 100 in Berkshire Hathaway in 1980, it would have soared to Rs 6.1 million (m) by the end of 2022.

Amazing, isn't it? How often have you been confronted with statistics like this? This makes us wish we had known what Warren Buffet, or your investment hero held back then.

Fortunately, there is a strategy based on mimicking portfolios of those whom we look up to in order to make the same gains. This is known as coattail investing.

Coattail investing refers to an investment strategy where an investor replicates the trades of well-known and historically successful investors. Smaller investors here ride the coattails of their idols in hopes of multiplying their investments.

The strategy is based on the logic that if these top investors would buy a stock for their own portfolio, then it must be a great investment and one would also benefit from it.

One such Indian investor that has often been under the radar of retail investors is Sunil Singhania.

Sunil Singhania has a track record of over two decades in equity markets and has played an important role in building Reliance-Nippon MF into one of India's largest asset management companies (AMCs).

Here is the list of the top 5 stocks in Sunil Singhania's portfolio by highest investments at present in value terms (not volume).

#1 Jindal Stainless (HISAR)

The first stock on the list is Jindal Stainless (HISAR).

Sunil Singhania holds a 3.65% stake in the company or 8.6 m shares in total as of December 2022, according to the shareholding pattern of Jindal Stainless (HISAR)

Considering the company's current market price of Rs 460.5 as of 17 January 2023, Sunil Singhania's total value in Jindal Stainless (HISAR) is Rs 3.9 billion (bn).

Here's how Singhania's holding in Jindal Stainless (HISAR) has varied since March 2019.

Quarter Ending	No of Shares	Stake (%)
19-Mar	2,700,000	1.14
19-Jun	3,600,000	1.53
19-Sep	4,150,000	1.73
19-Dec	4,350,000	1.84
20-Mar	5,000,000	2.12
20-Jun	5,000,000	2.12
20-Sep	7,876,000	3.34
20-Dec	8,719,777	3.7
21-Mar	9,174,777	3.89
21-Jun	9,324,777	3.95
21-Sep	9,274,777	3.93
21-Dec	9,334,777	3.95
22-Mar	8,997,773	3.81
22-Jun	8,997,773	3.81
22-Sep	8,997,773	3.81
22-Dec	8,601,145	3.65

Data Source: BSE

His bet on the company came in when Jindal Stainless HISAR successfully consolidated its recently added long product portfolio globally and increased his customer base for the special product division.

After his investment in the company, Jindal steel (HISAR)'s share price saw a sharp rally on the back of high revenue and increasing market share.

He gradually increased his stake from 1.1% in March 2019 to 3.95% in December 2021, almost escalating his stake in the steel company thrice. However, since then, he has reduced his stake.

This could be due to a substantial correction in steel prices due to subdued demand in the international market, particularly from China which accounted for 52% of global steel demand.

Apart from this Russia-Ukraine war and policy rate hikes by Central banks also impacted demand across the globe.

For the September 2022 quarter, the company reported a 4.9% YoY rise in revenue at Rs 39.3 bn. However, it reported a 49% YoY decline in net profit at Rs 2.5 bn.

This decline was due to the muted demand environment. Steel prices witnessed a steep decline in 2022. Domestic coil prices fell by Rs 700 per ton week-on-week to Rs 55,200 per ton in 2022.

The company has also got approval from NCLT for the Jindal Stainless Limited with Jindal Stainless (Hisar) merger as a part of an expansion plan for upcoming quarters.

#2 Route Mobile

Second, on the list is Route Mobile.

According to the September 2022 shareholding pattern of Route Mobile, Sunil Singhania holds a 2.69% stake in the company or 1.6 m shares in total.

Considering Route Mobile's current market price of Rs 1199.5 as on 17 January 2023, Sunil Singhania's total value in the company comes to Rs 1.9 bn.

He had bought 1.9 m shares of route Mobile in September 2020 through the IPO route.

Here is how his holding has varied ever since he acquired a stake in 2020.

Quarter Ending	No of Shares	Stake (%)
20-Sep	1,980,000	3.49
20-Dec	1,980,000	3.45
21-Mar	1,980,000	3.43
21-Jun	1,980,000	3.43
21-Sep	1,924,698	3.33
21-Dec	1,778,500	2.82
22-Mar	1,763,445	2.8
22-Jun	1,788,445	2.84
22-Sep	1,668,727	2.69

Data Source: BSE

His bet on the company came in during the high demand phase for the cloud platform. He picked up a 1.41% stake in the company through Abakkus Emerging Opportunities Fund and the rest 2.08% stake through Abakkus Growth Fund-1.

However, post that, shares price of Route Mobile saw a sharp rally on the back of high margins until October 2021.

Since his investment, he has steadily disinvested in the company, reducing his stake from 3.49% in September 2020 to 2.69% in September 2022.

This reduction could be due to the promoter's disinvestment in the company. From September 2021 to September 2022, promoters sold 7% stake in the company.

Also, 2022 was a nightmare for the IT sector. Even the best IT stocks were bleeding. The sector was plagued by a high attrition rate, with concerns of a global recession.

For the September 2022 quarter, Route Mobile reported 94.2% YoY growth in the revenue at Rs 8.5 bn, while net profit rose by 74.5% to Rs 736 m.

The company will complete two new acquisitions by the end of this financial year.

The Europe-based acquisition target will help Route Mobile launch mobile identity services. The Indian acquisition will allow it to offer voice solutions using artificial intelligence (AI) and machine learning (ML) technologies.

#3 Hindware Home Innovation

Third on the list is Hindware Home Innovation.

According to the December 2022, shareholding pattern of Hindware Home Innovation Sunil Singhania holds a 4.88% stake in the company or 3.5 m shares.

Considering the company's current market price of Rs 443.6 as of 17 January 2023, Sunil Singhania's total value in Hindware Home Innovation is Rs 1.5 billion (bn).

Initially, Sunil Singhania bought 1.6 m shares of Hindware Home Innovation in December 2019.

Here's how his holding has varied ever since he acquired a stake in September 2020.

Quarter Ending	No of Shares	Stake (%)
19-Dec	1,670,000	2.31
20-Mar	1,987,520	2.75
20-Jun	1,987,520	2.75
20-Sep	1,987,520	2.75
20-Dec	2,412,520	3.34
21-Mar	2,537,520	3.51
21-Jun	2,552,334	3.53
21-Sep	2,607,334	3.61
21-Dec	2,639,583	3.65
22-Mar	2,639,583	3.65
22-Jun	2,639,583	3.65
22-Sep	3,574,690	4.95
22-Dec	3,528,341	4.88

Data Source: BSE

He held a 5% stake as of September 2022, which reduced to 4.88% as of December 2022. After his investment in the company, shares of the company have been on an uptrend.

He gradually increased his stake from 2.3% in December 2019 to 4.95% in September 2022, almost escalating his stake in the company twice.

In the past three months, the stock saw a sharp rally of 35%. One of the reasons could be profit booking.

Another reason could be volatility in raw material prices. In the financial year 2022, the company's margins came under pressure as there was a significant rise in the price of brass, which is its key raw material.

In its latest earnings call, the company said the bath ware division is experiencing an increase in key raw material prices and power prices, impacting the margins.

Its furniture product category is also witnessing sales headwinds of late.

For the September 2022 quarter, the company reported 15.9% YoY growth in the revenue at Rs 7.1 bn, while the net profit declined by 34.7% to Rs 162.5 m.

The company plans to have more visual distribution points for the sanitaryware business and has planned a capex of around 700-800 m for 2023 and 2024.

Also, the company mentioned in the concall that ocean freight rates have come down substantially. This will help the company's imports and also move the lying inventory.

#4 Ion Exchange

Fourth on the list is Ion Exchange.

As of December 2022, the shareholding pattern of Ion Exchange shows that Sunil Singhania holds a 3.24% stake in the company or 0.4 m shares in total.

Considering the company's current market price of Rs 460.5 as of 17 January 2023, Sunil Singhania's total value in Ion Exchange is Rs 1.3 billion (bn).

Initially, Sunil Singhania bought 249,600 shares of Ion Exchange in September 2020.

Here's how his holding has varied ever since he acquired a stake in September 2020.

Quarter Ending	No of Shares	Stake (%)
20-Sep	249,600	1.7
20-Dec	340,500	2.32
21-Mar	373,500	2.55
21-Jun	373,500	2.55
21-Sep	396,000	2.7
21-Dec	411,000	2.8
22-Mar	414,000	2.82
22-Jun	443,000	3.02
22-Sep	448,000	3.05
22-Dec	475,000	3.24

Data Source: BSE

After his investment in the company, Ion Exchange has seen a sharp rally on the back of continuous order wins.

He has continuously increased his stake in the company from 1.7% in September 2020 to 3.24% in December 2022, almost doubling his stake.

This could be due to a rise in capex on water reuse.

India's capital expenditure on water and wastewater infrastructure in India is expected to increase over the coming years, with an annual run rate of US$ 46.5 bn (Rs 3.5 tn) by 2024.

Further, the race towards carbon neutrality, net zero goals and country's commitment to COP26 emission goals will accelerate the demand for innovative, efficient, green technologies built on the backbone of carbon neutral water-energy nexus.

It will drive demand for innovative water treatment technologies and proven EPC plus O&M capabilities, boosting the water treatment demand.

For the September 2022 quarter, Ion Exchange reported 18.4% YoY growth in the revenue to Rs 3.8 bn, while net profit rose by 42.2% to Rs 389.9 m.

To keep up with the expansion plan, the company has the potential to become double in size.

#5 Carysil

Last on the list is Carysil, previously known as Acrysil.

As of December 2022, the shareholding pattern of Carysil shows that Sunil Singhania holds a 6.14%stake in the company or 1.6 m shares in total.

Considering the company's current market price of Rs 443.9 as of 17 January 2023, Sunil Singhania's total value in Carysil is Rs 729.3 m.

Initially, Sunil Singhania bought 1.7 m shares of Carysil in March 2021.

His rationale for buying into the counter?

• "Competitive advantages as far as the labour cost is concerned are helping in the case of India, and that is what we are playing through one of the kitchen names you mentioned. The other thing is homegrown brands.
  
  We also believe in the consumption story of India for a long time."

Here's how his holding has varied ever since she acquired a stake in 2021.

Quarter Ending	No of Shares	Stake (%)
21-Mar	1,722,338	6.45
21-Jun	1,722,338	6.45
21-Sep	1,643,661	6.16
21-Dec	1,635,550	6.13
22-Mar	1,643,050	6.15
22-Jun	1,643,050	6.14
22-Sep	1,643,050	6.14
22-Dec	1,643,050	6.14

Data Source: BSE

His bet on Carysil came in when branded companies in second-tier, third tier, and rural side of India were doing very well.

However, post his stake in Carysil, the share price was on rally till April 2022. Since then, the shares of the company have been trading lower.

He has reduced his stake in the company from 6.45% in March 2021 to 6.14% in December 2022.

This reduction can be due to a periodic slowdown in the export market due to higher-than-usual inventory levels maintained during the Covid period by customers.

Further, the channel destocking and the manufacturing cost headwinds also hindered the growth in the company.

For the September 2022 quarter, the company's revenue jumped 16.6% YoY to Rs 1.4 bn. On the flip side, the net profit for the quarter declined 47.7% YoY to Rs 92.5 m.

This decline in profit was due to a 25.6% YoY jump in the total expenses to Rs 1.2 bn.

The cost of raw materials consumed stood at Rs 572.3 m, up 17.1% YoY, and employee expenses stood at Rs 105.1 m, up 18.5% YoY. Finance cost surged 91.5% to Rs 3.81 crore during the period under review.

Given the current global operating environment, the board has decided to postpone the expansion of an additional 200,000 capacity quartz sinks.

This expansion will take place in 2 phases, with 100,000 units in June 2023 quarter and the balance in December 2023 quarter.

Which other stocks has Sunil Singhania invested in?

Apart from the above five, here are some other stocks which Sunil Singhania has invested in as of September 2022.

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

Company	No of Shares	Percentage (%)	CMP (Rs in million)
Rupa & Company Ltd.	3,275,000	4.1	906
Sarda Energy & Minerals Ltd.	665,000	1.89	706
H.G. Infra Engineering Ltd.	983,187	1.51	684
Jubilant Pharmova Ltd.	1,912,681	1.2	678
HIL Ltd.	235,000	3.13	663
IIFL Securities Ltd.	9,716,400	3.2	627
Technocraft Industries (India) Ltd.	684,557	2.8	623
J Kumar Infraprojects Ltd.	2,005,000	2.65	555
Siyaram Silk Mills Ltd.	973,044	2.08	527
The Anup Engineering Ltd.	470,935	4.77	474
Stylam Industries Ltd.	384,880	2.27	439
PSP Projects Ltd.	545,000	1.51	384
AGI Greenpac Ltd.	1,206,364	1.86	380
Dynamatic Technologies Ltd.	157,273	2.48	370
Ethos Ltd.	302,663	1.3	298
ADF Foods Ltd.	332,287	1.51	253
Paras Defence And Space Technologies Ltd.	420,536	1.08	239
DCM Shriram Industries Ltd.	2,590,000	2.98	192
Tracxn Technologies Ltd.	1,625,040	1.62	162

Recently we also wrote to you about Vijay Kedia Portfolio top 5 stocks and Ashish Kacholia Portfolio: Top 5 stocks .

Stay tuned to get more updates on investment gurus as we cover more such pieces in the coming weeks.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...