Sunil Singhania Portfolio: A Detailed Analysis

Introduction:

Super investors, with their vast experience and keen market insights, have a proven track record of making wise investment decisions. Today, we’ll explore the portfolio of one such star investor, Sunil Singhania. His portfolio has been the talk of the town lately, thanks to the amazing performance of Abakkus Asset Managers. They started in September 2018 and have already made waves in the stock market. What drove these successful investments? What approach did Singhania follow? Let’s understand this through his portfolio analysis.

Sunil Singhania Profile:

Sunil Singhania is a respected chartered financial analyst (CFA) with over 20 years of experience. He became the first Indian on the CFA Global Board of Governors. His journey began in a middle-class family. In 1988, he became an all-India rank-holder Chartered Accountant, and in 2001, he became a Chartered Financial Analyst.

He served as the Global Head of Equities at Reliance Capital Limited, overseeing equity assets and providing strategic input across the Reliance Capital Group. As Chief Investment Officer of Equities, he led Reliance Mutual Fund (now Nippon India Mutual Fund) to great success. The Reliance Growth Fund grew over 100 times in less than 22 years under his leadership.

Singhania also led Reliance Nippon Life Asset Management’s international efforts, launching India funds in Japan, South Korea, and the UK. In 2018, he founded Abakkus Asset Management Company (AMC), reflecting his investment principles. Singhania’s sharp market insight and talent for spotting growth prospects make him a top expert in investment management.

Sunil Singhania’s Net Worth:

According to the most recent corporate shareholding filings, Sunil Singhania’s net worth is more than Rs.2831.6 crores as of the quarter ending March 2024. This was 0.26% less than the previous quarter. However, in the next quarter (June 2024), his net worth increased by 7.91% to reach Rs.3055.7 crores. Sunil Singhania’s net worth has shown a consistent uptrend since September 2022. 

Sunil Singhania’s Stock Portfolio:

Here are Sunil Singhania’s equity picks as of the March 2024 quarter:

Sr. No.	Companies	Dec 2023 %	March 2024 %	Value (Rs. Cr.)
1	Carysil Ltd.	5.86	5.76	131.87
2	DCM Shriram Industries Ltd.	2.98	2.86	53.87
3	Dynamatic Technologies Ltd.	2.94	2.94	145.27
4	H.G. Infra Engineering Ltd.	1.47	1.44	163.95
5	HIL Ltd.	3.21	3.21	70.8
6	Hindware Home Innovation Ltd.	4.42	4.45	151.41
7	IIFL Securities Ltd.	3.28	3.31	211.09
8	Ion Exchange (India) Ltd.	2.14	2	193.36
9	J Kumar Infraprojects Ltd.	2.65	2.64	179.55
10	Jubilant Pharmova Ltd.	1.2	1.2	143.14
11	Mastek Ltd.	3.22	3.14	278.69
12	PSP Projects Ltd.	1.51	1.51	37.2
13	Route Mobile Ltd.	2.58	2.44	272.08
14	Rupa & Company Ltd.	4.2	4.2	94.93
15	Sarda Energy & Minerals Ltd.	2.18	2.12	180.07
16	Siyaram Silk Mills Ltd.	1.79	1.59	37.19
17	Stylam Industries Ltd.	2.5	2.5	83.3
18	Technocraft Industries (India) Ltd.	2.69	2.69	179.87
19	The Anup Engineering Ltd.	3.85	3.81	68.13
20	ADF Foods Ltd.	1.54	1.54	39.75
21	CMS Info Systems Ltd.	1.03	–	0
22	Dreamfolks Services Ltd.	1.52	–	0
23	Ethos Ltd.	1.24	1.24	87.49
24	Uniparts India Ltd.	2.19	2.19	51.4
25	EMS Ltd.	1.35	1.35	49.11
26	TTK Healthcare Ltd.	1.13	1.13	23.14
27	Shriram Pistons & Rings Ltd	2.27	2.31	192.2

Sunil Singhania’s Portfolio Analysis:

Sunil Singhania’s portfolio revolves around the investment philosophy of creating long-term wealth by identifying companies with enormous potential, practicing ethical governance, and maintaining a diversified portfolio. It is a guide to diversification for the masses. As of March 2024, Sunil Singhania’s latest pick and other changes in the portfolio are as follows-

• Additions:

He increased his stake in Shriram Pistons and Rings Limited by 0.04% and his holdings in IIFL Securities Ltd. and Hindware Home Innovation Ltd. each by 0.03%.

• Deductions:

Sunil Singhania reduced the following holdings-

1. Siyaram Silk Mills Ltd. (0.2%)
2. Ion Exchange (India) Ltd. (0.14%)
3. Route Mobile Ltd. (0.14%)
4. DCM Shriram Industries Ltd. (0.12%)
5. Carysil Ltd. (0.1%)
6. Mastek Ltd. (0.08%)

The sectoral distribution of the portfolio shows the following break-up:

Sectors	% Share
Cement and construction	14
Engineering	13.34
Metal- Ferrous	11.81
Infrastructure	11.27
Others	49.23

The ‘others’ include textiles, consumer durables, utilities, general industries, commercial services and supplies, banking and finance, pharmaceuticals, and retail companies. 

Sunil Singhania Investment Strategy:

Sunil Singhania’s portfolio reflects a straightforward yet effective investment approach:

• Diversification: He believes in diversifying across sectors and market caps, balancing exposure to large and small firms.
• Quality Companies: Sunil Singhania’s portfolio has stocks from companies with robust fundamentals, competitive edges, and growth prospects.
• Ethical Governance: Sunil Singhania’s portfolio emphasizes investing in companies that adhere to ethical practices.

Sunil Singhania Investment Philosophy:

Sunil Singhania’s portfolio follows the MEETS framework, which analyzes Management, Earnings, Events or Trends, Timing, and Structure. Here’s a breakdown of the parameters:

1. Management: To examine the management of a company means to consider the following-

• Assess the management team’s experience, skills, and past successes. Look for a consistent history of delivering results.
• Assess how effectively the company invests its resources. Look for evidence of profitable projects (return on investment), efficient capital expenditure (CapEx),  return on equity (ROE), and debt-to-equity ratio.
• Check whether profits are fairly distributed to shareholders. Consider the company’s dividend payout ratios, share buybacks, and the company’s history of increasing shareholder wealth.
• Differentiating downfalls (if any) between business errors and intentional mishaps. Look for consistent patterns of underperformance or evidence of intentional misconduct. 

2. Earnings: To examine the earnings of the company means to

• Compare the quality of earnings vs. reported numbers. 
• Analyze actual earnings vs. expected earnings to check whether the company meeting or beating its financial goals.
• Consider whether earnings are cyclical (seasonal) or structural (long-term).
• Look for companies that can double profits in four years or where the value can halve in four years.

3. Events: To analyze the events means you need to

• Analyze how significant events (e.g., product launches, mergers, acquisitions, regulatory changes) affect the company’s stock price. Identify opportunities to buy or sell based on market reactions.
• Stay informed about emerging trends and disruptive technologies that could impact the company’s future. 

4. Timing: Focusing on the timing of the investment means evaluating the right price and timing for investments. For that, you must consider the following-

• Assess the current price to determine if the stock is overvalued, undervalued, or fairly valued. For this, compare the company’s current stock price to its intrinsic value using valuation metrics like the price-to-earnings (P/E) ratio, the price-to-book (P/B) ratio, and the industry average. So, suppose a company’s P/E ratio is 20, and the industry average is 18; you can say the stock is either fairly valued or slightly overpriced. 
• Determine the appropriate holding period based on the company’s growth prospects, industry trends, and overall market conditions. 
• Considers mean reversion (evaluating the tendency of a stock’s price to return to its long-term average over time).

5. Structure: To evaluate the company’s structure is to-

• Assess the size and growth potential of the company’s target market. A large and growing market can drive revenue and profit growth. For instance, the Indian electric vehicle market, valued at USD 8.03 billion in 2023, is projected to grow at a CAGR of 22.92% till 2030, offering significant growth potential for EV manufacturers. 
• Assess competitive positioning or market advantage (MOAT). Understand how the company stands out from competitors— strong brand value (E.g., Apple Inc.), patents, or cost advantage. 
• Look for consistent profit growth. Analyze the company’s profit margins, operating efficiency, and cost structure for at least the last three to five years. 

Conclusion:

Abakkus Fund, under the expert guidance of Sunil Singhania, exemplifies excellence in securities advisory and equity picks. With a deep understanding of what constitutes a robust stock portfolio, Singhania’s approach offers a valuable guide to diversification. His strategic investments across diverse sectors demonstrate his market acumen and provide a blueprint for achieving balanced and profitable portfolios. 

For investors seeking insightful and effective strategies, Sunil Singhania’s portfolio is a testament to the power of informed, diversified equity investments. You can begin your journey by understanding what is a stock portfolio to be able to navigate the markets with confidence. 

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

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