Vijay Kedia’s decade-held shares buying and selling at deep reductions – Inventory Insights Information

Ace investor and one of many Warren Buffetts of India, Vijay Kedia not too long ago mentioned in an interview that he has seen a elementary shift within the Indian Market’s behaviour, as now bull markets are lasting longer whereas bear markets are getting shorter.

Kedia who has seen his portfolio lose over Rs 600 cr for the reason that starting of October 2024, additionally mentioned that the markets are in a consolidation mode, and he doesn’t rule out the opportunity of additional consolidation. The market volatility he mentioned was a traditional pattern and the pains could also be momentary.

And it is smart to imagine him as he has trusted many shares over time to beat such odds. In actual fact, there are two shares that he has trusted for a decade and would nonetheless not promote them even in these markets. Each these favourites of Kedia are buying and selling at huge reductions.

Allow us to see what these shares have in them to carry Kedia’s consideration and cash for a decade.

Atul Auto Ltd was included in 1986 as a non-public restricted and was transformed to a public ltd in 1994. The corporate’s core enterprise is manufacturing and gross sales of three-wheeler vehicles and spare components. It offers after-sales help to the purchasers by means of the dealership community.

With a market cap of Rs 1,299 cr, AAL has 5% of the home market share and three% of the general market share within the three-wheeler business.

Ace investor or as we prefer to name them, one of many Warren Buffets of India, Vijay Kedia, has been holding a stake within the firm since December 2015 (since data have been out there on Trendlyne.com), both individually or by means of his firm. As of the quarter ending in December 2024, he holds 2.71% stake in AAL by means of his firm Kedia Securities Pvt Ltd and 18.20% stake in particular person capability.

That’s over 20% holding within the firm, which speaks volumes in regards to the belief Kedia has on AAL.

Now if we have a look at the financials, the questions of why Kedia has been holding this inventory nonetheless even immediately simply get larger.

The corporate’s gross sales dropped kind Rs 667 in FY19 to Rs 527 in FY24. That may be a drop of 21%. And between April and December 2024, the corporate has logged in gross sales of Rs 511 cr already.

The EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) for AAL has additionally dropped by nearly half from Rs 81 cr in FY19 to Rs 40 cr in FY24. And between April and December 2024, Rs 37 cr is already logged in as working earnings.

As for web earnings, AAL has seen a drop that might shake the belief of even essentially the most loyal buyers. From Rs 55 cr in FY19 to Rs 7 cr in FY24.

Nevertheless, between April and December 2024, the Internet earnings are at nearly Rs 12.5 cr, which is about 79% soar on the earlier fiscal 12 months already.

It’d look like a turnaround story if we have a look at the web earnings.

The share value of AAL has seen a soar of about 212% from Rs 150 in March 2020 to its value as on closing on 21^st March 2025, which is Rs 468.

The all-time excessive value of the inventory is Rs 844, so the present share value is a 44% low cost on its all-time excessive value.

The corporate’s share is buying and selling at a present PE of 75x, which is amongst the very best within the class and the business median is 30x. The ten-year median PE for AAL is near 26x whereas the business median for a similar interval is 20x.

In 2023, the corporate additionally ventured into the electrical area by introducing two electrical three-wheelers, Atul Mobili & Atul Energie.

Within the final annual report, the brand new Managing Director, Neeraj Chandra mentioned, “Inexperienced vitality is the longer term, and Atul Auto is able to spearhead this revolution within the three-wheeler auto business throughout the globe.”

Integrated in 1993, Repro India Ltd is within the enterprise of Printing of Books and Copy of recorded media. The corporate provides a full suite of print providers to publishers and companies, going past simply printing. They deal with all the pieces from artistic design and pre-press work, to binding, warehousing, and delivery. In addition they do digital printing and print-on-demand.

With a market cap of Rs 622 cr, Repro has clientele like Cambridge College Press, Oxford College Press, Taylor & Francis Macmillan Publishers, Penguin Publishing India Pvt Ltd, and many others.

The corporate additionally has a relationship with key e-commerce gamers equivalent to Amazon, Flipkart, JIO, Meesho, First Cry and Snapdeal for his or her Digital printing wants.

Kedia has held a stake in RIL at the very least since December 2015 (since data have been out there), per Trendlyne.com. Presently he holds 6.33% value Rs 39.4 cr for the quarter ending December 2024.

Aside for Vijay Kedia, one other Warren Buffet of India, Madhusudan Kela additionally holds 3.32% stake in RIL as per the alternate filings filed for the quarter ending December 2024.

The gross sales for Repro have seen a compound development of 4% within the final 5 years because it jumped from Rs 399 cr in FY19 to Rs 479 in FY24. Additionally, between April and December 2024, the corporate has recorded gross sales of Rs 343 cr.

EBITDA grew from Rs 45 cr in FY19 to Rs 52 cr in FY24, logging in a compound development of virtually 3%. And for the interval of the three quarters between April and December 2024, it has logged Rs 23.4 cr in EBITDA.

The online revenue looks like an space of concern, as between FY19 and FY24, it dropped by 50% from Rs 24 cr to Rs 12 cr. For the quarters between April and December 2024, the corporate has recorded losses of over 3 cr.

Repro’s share value was Rs 320 in March 2020 and as in the marketplace closing I 21^st March 2025, the share was buying and selling at Rs 434, which is a 35% soar.

Nevertheless, the present value of Rs 434 is a large 56% low cost for the shares all-time excessive value of Rs 994 which it hit in December 2023.

Repro’s PE is at present within the unfavorable so not out there on screener.in. Nevertheless, the business median when in comparison with friends from the identical sector is round 18x. The ten-12 months median PE for Repro is 45x whereas the business median for a similar interval is 23x.

Within the firm’s final Annual Report for FY24, the corporate’s Chairman Vinod Vora mentioned that the corporate is at an inflection level of development as a result of a number of methods.

He mentioned, “The Built-in Resolution has enabled us to pivot from the standard cyclical service mannequin to the secular and scalable distribution mannequin. Import Substitution for multinationals allows publishers to extend revenues and provide extra titles. Knowledge pushed analytics helps predict demand and Bookscapes enhances the guide shopping for expertise. The establishing of a number of manufacturing mini pods throughout India, nearer to the shopper, additional drives efficiencies. With these methods aligned, our infrastructure and investments in place, we’re immediately poised on the inflection level of development.”

The ten 12 months Lengthy Kedia Grip

The Warren Buffet of India, Vijay Kedia is understood for his small and midcap picks, as most of a lot of them find yourself going huge and making Kedia a boatload of cash. So, when he picks smaller corporations, it turns heads within the investor circles.

However issues get extra critical when he picks two much less recognized small corporations like Atul Auto Ltd and Repro India Ltd and holds them throughout market cycles for 10 years. What’s it in these corporations that Kedia sees and trusts it, which the frequent dealer might be lacking. Particularly given the earnings for RIL seem like a priority.

Which approach will these two corporations go and what they do with its buyers, solely time will inform. It could be a clever resolution so as to add these corporations to the watchlist, provided that it’s trusted by not one however 2 Warren Buffets of India.

Disclaimer:

Notice: We’ve relied on knowledge from www.Screener.in and www.trendlyne.com all through this text. Solely in instances the place the info was not out there, have we used an alternate, however broadly used and accepted supply of knowledge. 

The aim of this text is barely to share fascinating charts, knowledge factors and thought-provoking opinions. It’s NOT a advice. In the event you want to contemplate an funding, you’re strongly suggested to seek the advice of your advisor. This text is strictly for educative functions solely. 

Suhel Khan has been a passionate follower of the markets for over a decade. Throughout this era, He was an integral a part of a number one Fairness Analysis organisation based mostly in Mumbai because the Head of Gross sales & Advertising and marketing. Presently, he’s spending most of his time dissecting the investments and methods of the Tremendous Traders of India.

Disclosure: The author and his dependents don’t maintain the shares mentioned on this article. 

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