Rs 200 crore to Rs 2,500 crore in 18 months. Which stocks turned multibagger for Sunil Singhania?

While Nifty small-cap and mid-cap have doubled in the covid recovery phase, the net worth of Sunil Singhania multiplied 13x times to Rs 2,546 crore in a matter of 18 months.

In March 2020 the Indian stock market crashed. Nifty was around 30 per cent down amid panic selling that happened in a matter of few days due to uncertainty floating around. But do you know what veteran investors like Sunil Singhania did at the time, they weren’t selling like retail investors, instead, they increased the stake of some of their holdings, which are fundamentally strong companies as valuations were cheap at the time. And now, you would be shocked to see the multifold returns of Sunil Singhania’s top holdings from March 2020 till date. Here is the list.

His net worth was Rs 200 crore in March 2020, currently, it has multiplied 13x times to Rs 2,546 crore in a matter of 18 months.

Mastek Ltd has turned to become a multibagger for Sunil Singhania. He is quite bullish on this mid-cap IT company for quite a long time. In March 2020 quarter he increased the stake from 2.6 per cent to 5.6 per cent. His portfolio worth of this stock would be somewhere around Rs 27 crore in March 2020, his current holding has increased to Rs 474 crore due to 18x times increase in stock price.

Other multibaggers include:

* Saregama India Ltd (21.75x times increase in stock price) with 2075 per cent return in 18 months.

* Jindal Stainless (Hisar) Ltd, (8.78x times increase in stock price) with 778 per cent return in 18 months

* Somany Home Innovation Ltd, (6.87x times increase in stock price) with 587 per cent return in 18 months.

* Acrysil Ltd (3.82x times increase in stock price) with 282 per cent return in 10 months

* IIFL Securities Ltd (3.75x times increase in stock price) with 275 per cent return in 18 months

* Route mobile Ltd (2.36x times increase in stock price) with 136 per cent return in 13 months.

 Sunil has over 25 years of experience as a CFA. He is the founder of Abakkus Asset Management, LLP, an asset management firm focusing on India. He founded it in 2018. He was previously a Global Head of Equities at Reliance Capital Ltd Singhania has guided Reliance Mutual Fund’s (now Nippon India Mutual Fund) equities schemes to be recognized among the top as CIO – Equities. Under Singhania’s direction, the Reliance Growth Fund (now Nippon India Growth Fund) increased by more than 100 times in less than 22 years. 

Investment style of Sunil Singhania 

He follows the 15:15:15 approach. Here, they aim to invest in businesses having at least two out of three criteria.  

1. ROE >15% 

2. Earnings Growth >15% 

3. P/E Ratio < 15 

He invests in three kinds of companies viz, growth companies, value companies and buy-and-hold companies. He prefers to be contrarian and invests with a focus beyond chasing momentum but chasing earnings. 

Do you own any of these stocks in your portfolio?