How to spot multibaggers in stock market? Vijay Kedia shared his 100x mantra

Mumbai-based investor Vijay Kedia, who is known for spotting at least three 100x stocks on Dalal Street, believes that there is always sunshine on Dalal Street despite market vagaries. Kedia says one should not judge the market on the basis of Sensex or Nifty performance and that a few pockets could gain big from a strong Capex cycle going ahead.

Kedia said this at the time amid tepid market returns, with the BSE benchmark index Sensex falling 1 per cent, or nearly 750 points, on a year-to-date basis till January 16, 2023.

The market veteran finds value in a couple of sectors such as banks and capital goods. He also thinks that defence as a pack will continue to be investor darling, even if there is some time-wise correction after the recent run-up.

“Investors should stick to stock-specific view. Banks and other sectors that may benefit from capex cycle are likely to deliver handsome returns. As far as IT sector is concerned, it has more or less priced in the correction. Overall, I don’t think 2023 will be bad year for domestic stocks, despite concerns globally over of recession and rate hikes,” Kedia told Business Today in an exclusive interaction on the sidelines of Auto Expo 2023.

When you know the impact of a risk, says Kedia, the damage will be not too much, he added.  

“A market falls when unforeseen events occur. I believe the US, UK and Europe are already in recession and the market already knows it. I am bullish on India. However, volatility will rule the roost on Dalal Street this year at the overall level,” Kedia said adding some of the risk-averse investors may shift to fixed deposits amid the rising interest rate scenario.

However, he said, there will remain some scope for equities, considering the robust household savings.

“I have noticed that India’s youth are highly interested in financial literacy. We may see the financial revolution in the county,” Kedia said. He advised new investors not to copy either his or any other market guru’s portfolio.

“I would suggest first-time investors enter into the market through mutual funds. The stock market is a place to make the easiest money in the hardest way. Therefore, you first learn, spend time for 4-5 years and play safe. Investors should use their own talent, mindset and knowledge to identify stocks. I do lose money in the market,” said Kedia.

Kedia, who has over three decades of stock market experience, added that one should not leverage for trading or investing in the stock market. “Traders should also avoid leverages as there is less than 1 per cent success rate in F&O. Investors should also not put money on tips,” he said.

Kedia held over 15 stocks in his portfolio as of September 30, 2022. Some of his top portfolio stocks included names like Vaibhav Global, Innovators Façade Systems, Repro India, Tejas Networks, Atul Auto, Cera Sanitaryware and Heritage Foods, among others.

While sharing his views on commercial vehicle space at the launch of Atul Greentech’s electric vehicles, Kedia said that three-wheeler makers may see a growth of 10 per cent going ahead from 5-6 per cent growth earlier.

“Everything will convert to electric vehicles sooner or later,” he said.

On asking how to spot a 100-bagger in the equity market, Kedia said, “The only way to either make 10x or 100x is not to sell your high conviction bet in a bear market. Investors should also review their picks from time to time. One should also invest a good amount of money in the stock to make it big. In short, staying put on your high conviction bet is the mantra to get multibagger return.”

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