Radhakrishnan Damani Success story
Radhakrishnan Damani is a Mumbai-based stock market investor and businessperson. He is the owner of India’s third-largest mega-retail store’s chain which is ‘DMart. He started his career as a trader, but an economic crisis at his home after his father’s death led him to become a stock-market investor.
Radhakrishnan’s initial years in the stock market were spent on research and speculation. He closely watched the stock-market strategies applied by Manu Manek.
He achieved a foothold in the business only after he crossed the infamous Indian stockbroker Harshad Mehta. Radhakishan invested massively in multinational stocks and ultimately became one of the leading stock-market investors in the country. ‘
Forbes has ranked Radhakishan Damani as the 12th-richest person in India. Rakesh Jhunjhunwala, the Indian investor and trader who is regarded as the “Warren Buffet of India,” considers Radhakishan as his mentor.
Radhakrishnan Damani Investment Strategy?
Radhakrishnan Damani used to follow these simple yet useful strategies to invest in the stock market. The strategies are
Find a Mentor
If you are new to the stock market, it is important to find a mentor and follow their investment strategies. Radhakrishnan Damai too had a mentor named Chandrakant Sampat. He taught Damani about the stock market.
It is highly recommended to consult a good advisor to emerge out as a winner. Possessing sufficient knowledge of equity is not enough to start trading. You must study the market thoroughly and predict its direction to make money.
Analyze the stock before investing
You need to know the rules of investment before investing. Even Damani does the same thing. Before picking a stock, he goes through a particular company’s entire history. You can analyse a stock performance by checking data rather than intuition and guesswork.
He uses ratios like P/E ratio, Enterprise Value to EBITDA, Net Margin, RoCE, Revenue growth year on year, quarterly financial history, etc. When you know the fundamentals well, you can assess the value correctly. Learn how to analyse and invest in a stock but Learn Stock Market Training.
Invest in Long-term
If you remove your money day in & out of markets, then you are not an investor. To become an investor, you need to stay in the market for quite a long time. Damani too does the same thing.
Research has proved that stock prices tend to move towards the mean in the long-term investment. There may be volatility in the short-term investment but the fluctuations smoothen out to give average returns around 12%.
Diversification & Rebalance the stocks
You may be too confident about the company or the sector but putting all your money into that increases your risk. You need to diversify your portfolio like Damani.
He never invests more than 1% in stocks of a single company. He gets to rebalance his portfolio regularly, It’s good to sit close on your investments.
Judging the stocks
Judging stocks is a good thing. Equity investing is all about estimating the market and developing a viewpoint. If you don’t have an opinion regarding particular stock then you can’t succeed in the stock market.
Damani is adept at judging the behaviour of the stock prices. He is a patient listener as he attends to the advice of everyone but acts according to his judgment and instinct. You can’t judge the markets from the very first day. It will take some time to understand how things work.
The entire game of investing works on patience. It’s very usual for you to expect quick returns as soon as money is invested. But in the stock market, things don’t work in that way. If you check the price now & then, then you complicate matters.
It will just create unnecessary exuberance and may cause you premature exits. You need to stay away from all the irrational elements. Keep calm and watch your money grow patiently.
Radhakrishnan Dhamani Portfolio
These are shares held by Radhakishan Damani as per the shareholding data filed with the exchanges. The latest quarter tends to have missing data since not all companies may have reported their shareholding data until now.
Let us look at Radhakrishnan Damani Portfolio shown in the table below
|S.No||Stock Name||Holding value (Rs)||Qty. Held||Change% (June 2022)|
|1||United Breweries Ltd.||534.8 Cr||3,252,378||1.20%|
|2||3M India Ltd.||374.6 Cr||166,700||1.50%|
|3||Astra Microwave Products Ltd.||24.7 Cr||896,387||1.00%|
|4||BF Utilities Ltd.||18.2 Cr||481,000||1.30%|
|5||Blue Dart Express Ltd.||285.3 Cr||331,770||1.40%|
|6||India Cements Ltd.||758.3 Cr||39,281,694||12.70%|
|7||Andhra Paper Ltd.||21.1 Cr||500,000||1.30%|
|8||Trent Ltd.||749.6 Cr||5,421,131||1.50%|
|9||VST Industries Ltd.||1,661.2 Cr||4,993,204||32.30%|
|10||Mangalam Organics Ltd.||11.7 Cr||186,187||2.20%|
|11||Sundaram Finance Holdings Ltd.||32.8 Cr||4,170,434||1.90%|
|12||Metropolis Healthcare Ltd.||79.4 Cr||535,274||1.10%|
|13||Avenue Supermarts Ltd.||173,414.1 Cr||399,875,708||61.70%|
|14||Sundaram Finance Ltd.||545.6 Cr||2,630,434||–|