Ace investor and one of the Warren Buffetts of India, Vijay Kedia recently said in an interview that he has seen a fundamental shift in the Indian Market’s behaviour, as now bull markets are lasting longer while bear markets are getting shorter.
Kedia who has seen his portfolio lose over Rs 600 cr since the beginning of October 2024, also said that the markets are in a consolidation mode, and he does not rule out the possibility of further consolidation. The market volatility he said was a normal trend and the pains may be temporary.
And it makes sense to believe him as he has trusted many stocks over the years to beat such odds. In fact, there are two stocks that he has trusted for a decade and would still not sell them even in these markets. Both these favourites of Kedia are trading at big discounts.
Let us see what these stocks have in them to hold Kedia’s attention and money for a decade.
Atul Auto Ltd (AAL)
Atul Auto Ltd was incorporated in 1986 as a private limited and was converted to a public ltd in 1994. The company’s core business is manufacturing and sales of three-wheeler automobiles and spare parts. It provides after-sales support to the customers through the dealership network.
With a market cap of Rs 1,299 cr, AAL has 5% of the domestic market share and 3% of the overall market share in the three-wheeler industry.
Ace investor or as we like to call them, one of the Warren Buffets of India, Vijay Kedia, has been holding a stake in the company since December 2015 (since records were available on Trendlyne.com), either individually or through his company. As of the quarter ending in December 2024, he holds 2.71% stake in AAL through his company Kedia Securities Pvt Ltd and 18.20% stake in individual capacity.
That’s over 20% holding in the company, which speaks volumes about the trust Kedia has on AAL.
Now if we look at the financials, the questions of why Kedia has been holding this stock still even today just get bigger.
The company’s sales dropped form Rs 667 in FY19 to Rs 527 in FY24. That is a drop of 21%.
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