Vijay Kedia is one of the most renowned investors in India who is known for his unique investment strategy that focuses on long-term investing and identifying high-potential small and mid-cap companies.
Renowned equity investor Vijay Kedia thinks that BSE Sensex could touch the 70,000 mark by the end of the current calendar year. The 30-share index closed at 65,953.48 on Monday (August 7), up 8% on a year-to-date (YTD) basis. Foreign institutional investors (FII) have poured Rs 1.21 lakh crore in the domestic equity market YTD, while domestic institutional investors (DII) have bought shares worth Rs 87,491 crore during this period.
Considering the current market scenario, Vijay Kedia, who holds over 1% stake in more than 15 listed firms told Business Today that investors can zero in on sectors like infrastructure and public sector banks. “I am bullish on infrastructure sector due to robust spending by government and private sector. Capacity utilisation has also reached 80%. On the other hand, public sector banks enjoy cheap valuations and double-digit credit growth,” the market maven said.
Continue viewing BT Visual Story
Catch the latest business news, share market updates, expert analysis and exclusives only on BTTV.in
Vijay Kedia also likes telecom equipment manufacturing companies. The Mumbai-based investor told Business Today that the government’s push to connect every nook and corner of India coupled with switching of 4G to 5G will bring huge investment in the sector.
So far this year, the BSE Capital Goods index has gained around 30%. While BSE Realty, Healthcare, Auto and FMCG indices have gained 26%, 23%, 22%, and 17%, respectively. Telecom, IT, Consumer Durables, Metals, and Bankex have also advanced between 4% and 9% so far in 2023. On the other hand, the BSE Power and BSE Oil & Gas indices have declined 3% and 7%, respectively, during the same period.
Talking about the sectors he is bearish on, Vijay Kedia told BT that investors could avoid the information technology (IT) sector due to the ongoing slowdown in the US coupled with the emergence of artificial intelligence (AI). He further advised investors to avoid metal sector due to its dependency on global market.
Vijay Kedia publicly holds 16 stocks with a net worth of over Rs 1,238.9 crore as of August 8, according to Trendlyne data. Data available with Ace Equity showed that Kedia held over 10% stake in Innovators Facade Systems as of June 30. It was followed by Repro India (6.84%), Tejas Network (2.01%), Vaibhav Global (1.95%) and Elecon Engineering Company (1.78%).
As of June 30, 2023, Vijay Kedia held over 1% stake in firms like Patel Engineering, Sudarshan Chemical Industries, Neuland Laboratories, Panasonic Energy India Company, Atul Auto, Talbros Automotive Components, Heritage Foods, Precision Camshafts, Siyaram Silk Mills and Mahindra Holidays & Resorts India.
Vijay Kedia specializes in investing in small and mid-cap companies as according to him, these companies have significant growth potential and can generate multibagger returns if chosen wisely. He is known to look for companies with strong management teams, unique business models, competitive advantages, and growth prospects.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.