INSUBCONTINENT EXCLUSIVE:
This Gurugram-based investor also has a unique style of investing: he keeps looking for stocks which may have taken a dent because of a
And then he tries to look for signs of insider buying in such dips
Gaurav.
In a regular week, he would have a quick check on the 52-week low list and then look for common names on the insider buying list
Then, he filters out the stocks whose industries are facing some headwind or stocks are suffering due to some negative event
42-year old.
Gaurav claims he made money on Unitech during 2002-06 and Ashiana Housing over the past decade
Unitech shares jumped from just Rs 0.30 on January 2, 2002, to Rs 229.90 on December 29, 2006
Ashiana has climbed to Rs 163.45 as of May 11, 2018 from Rs 4.10 in January 2006, where he had bought it.
He also claims to have earned 5-10
times returns from Suprajit Engineering, NESCO, Gulf Oil Lubricants, SMS Pharma, Cosmo Films, Arman Financial and Deepak Nitrite
He still holds Ashiana Housing and NESCO.
ETMarkets.com could not independently verify his holdings at present or back then.
Investing
styleGaurav has a knack for stock picking in special situations such as open offer, merger, demerger, buyback, rights issue and delisting,
among others.
This kind of investment is of limited duration and returns expectations are much lower
But the certainty of making a profit on investment is high, he says.
That man, who discovered his passion for stocks after reading legendary
Prakash, CEO and MD of Amansa Capital.
He says company-specific factors can often be a cue to pick the stock
holding limited amount of land as inventory, besides adopting a joint development model and selling directly to customers.
Gaurav says
before picking a company he tries to look at least its annual reports for at least five years and attend conference calls
He says it's very important to get it right when selling a stock
The right time to sell a stock is when the stock has become overvalued within his parameters or the hypothesis on which he bought it is no
reasons.
Gaurav, a product of IIT Delhi (1993-97) and IIM Calcutta (1997-99), started investing in stock market in a small way from 1998
and making a hypothesis for investing
Learning from mistakesAfter getting mouth-watering returns from Unitech, Gaurav put all of his investment in the stock market in 2007 and
did not care rich valuations
in Syndicate Bank in 2012 and JP Associates in 2013 as his biggest mistakes
He purchased Syndicate Bank at Rs 110, considering it was giving a dividend of Rs 4.5 and trading close to book value
Gaurav is still holding the stock
He bought JP Associates at Rs 68 after the QIP of 2013
always try to answer this question - What is my edge over other investors in this stock
This edge could up your ability to look at the long-term performance and ignore the short term underperformance
better to invest through mutual funds and trust professional fund managers
In India, most of the equity mutual funds have outperformed their benchmarks for over long intervals.
He also recommends the following books
for avid market participants: Misbehaving by Richard Thaler, Bull - A History of the Boom and Bust, 1982-2004 by Maggie Maher, Roger
market valuations are on the higher side
will benefit some companies directly or indirectly in years to come.
