Raamdeo Agrawal is more than just a name in the Indian stock market; with clever investing strategies, he has built an empire valued at Rs 2,000 crores. Any beginner investor may be readily drawn in by Mr. Raamdeo’s extremely simple yet powerful wealth development approach: Quality (Q), Growth (G), Longevity (L), and Price (P). If you have been trading stocks in India for some time, you may have come across the name “Raamdeo Agrawal” on news programs or websites that deal with finance.
One of the most well-known figures in the Indian investing sector is Mr. Raamdeo Agrawal. Our main focus will be on Raamdeo Agarwal’s success story in the Indian stock market sector. Well In this blog we are going to know about Some of Raamdeo Agrawal Portfolio’s most popular and useful historical guesses from his career.
Raamdeo Agrawal: Early Days of Investing
Raamdeo Agrawal was born and raised in Raipur, Chhattisgarh. Since his father was a farmer, he claims that the only investment strategy he knew was to save and invest in his children and their future. Raamdeo Agrawal moved to Mumbai to complete his higher degrees. In Mumbai, he pursued chartered accountancy and began working as a sub-broker in 1987. It was in Mumbai that he met Motilal Oswal, his closest colleague, and partner, while sharing a similar hostel. Oswal described Agrawal as an extraordinary scholar who was eager to study the organization’s reports and balance sheet records. Current family ownership of Motilal Oswal Financial Services is around 36%; Raamdeo Agrawal and Motilal Oswal co-founded the company.
Raamdeo Agrawal Investing Strategy
Ramdeo Agrawal credits his careful investing methods for his success. Among the most important tactics he wholeheartedly supports are the following:
Watch for favorable results.
According to Raamdeo Agrawal, results will be better if you are more persistent. He had nothing in 1987, but in 1990 he claimed to have amassed one crore in riches.
In the beginning, Motilal Oswal was in poor form. But they gained thirty crores in just a year and a half following the Harshad Mehta fraud.
Markets are unpredictable, and a great deal of confidence and tolerance are needed, according to Agrawal. He says that a greater amount of earnings may be attained via perseverance and long-term investments.
Invest in what you understand
Before committing, it is always crucial to understand the business you wish to invest in. Perform in-depth research and analysis to ensure your satisfaction with the business. Understanding the numerous hazards involved and creating a strategy that works for you are what determine the success of a company enterprise.
Long-term investments
For as long as feasible, invest continuously, advises Raamdeo Agrawal. According to him, “You should always invest when you have excess funds, and sell when you have a desperate requirement for funds.”
Unpredictability in the market might occasionally cause problems for an investment. For this reason, it becomes essential to buy stocks at a fair price and sell them as needed. An investor with long-term investments may be better able to tolerate short-term volatility and other absurd human reactions to the stock exchange. The way financial experts react to a situation always has an impact on the stock market.
Raamdeo Agrawal Portfolio
Some of Raamdeo Agrawal Portfolio’s most popular and useful historical guesses from his early career are listed below:
- Hero Honda: I paid Rs. 30 for shares in Hero Honda in 1996, and I sold them for Rs. 2600 in 2016. During these 20 years, he also earned a dividend of around 600 per share.
- Infosys: During the mid-1990s, he purchased a stake in Infosys, which he later sold for profits above 12%. Throughout the time he held this stock, he consistently received bonuses and dividends.
- Eicher Motors: In 2017, the shares of Eicher that I had purchased for Rs. 900 had increased to Rs. 32,000. For personal incentive, Raamdeo Agrawal advises investors to allocate their capital to no more than 15 stocks. He feels that fifteen stocks is too much. Ideally, he would suggest four to five stocks. Investors can profit from diversification by holding a variety of equities.
About 90–92% of the investment’s overall advantages, nevertheless, are collected by the time the Raamdeo Agrawal Portfolio reaches 15. There aren’t many advantages after this.
People who want to make money on the last 10% should spread out their stock holdings. Eventually, it would reach a stage where it may impair judgment. This is because he wouldn’t be inspired to go further and learn more about the stock.
With a disciplined approach to the portfolio,
Raamdeo has incredible control over his assets. When he concluded the Berkshire Hathaway pieces no longer suited his portfolio strategy, he decided to sell them. This was accurate even if Warren Buffet kept making contributions to his shrine.
What Made His Investments Successful?
Raamdeo Agrawal is a strong proponent of the QGLP formula (Quality, Growth, Longevity, and Price) for constructing long-term wealth.
- Quality: Quality was important to Raamdeo Agrawal, who realized this after investing in financial technologies. After investing in Financial Technologies (India) Ltd., he lost money. This made him realize how crucial management is to a business. After that, Raamdeo promised, that he usually gave the management of the firm more attention.
- Growth: Growth is one of the most crucial factors, in Raamdeo’s opinion, that investors should consider when selecting companies to invest in. Putting money into these companies will ensure high profits at minimal cost. Raamdeo defines investing as simply “estimating the current value of all future earnings” and making choices based on that evaluation.
- Longevity: The capacity of the company to withstand changing market conditions and maintain or increase its current profitability level. This component incentivizes investors to invest in established companies. This gives the investments some stability and gives investors enough information to make decisions easier.
- Price: The value a stock offers must be taken into consideration when determining its price. This suggests that the price of a stock when you buy it should be lower than its worth. Price is what we pay, but value is what we get. Consequently, a stock gains appeal when its price is less than its inherent value.
Raamdeo Agrawal Portfolio List
| S.No. | Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | Div Yld % | NP Qtr Rs.Cr. | Qtr Profit Var % | Sales Qtr Rs.Cr. | Qtr Sales Var % | ROCE % | ROE % |
| 1 | Addictive Learn | 275.85 | 177.69 | 438.86 | 0 | — | — | — | — | 552.49 | 340.69 |
| 2 | Swadeshi Polytex | 112.35 | 7.71 | 438.17 | 0 | 32.59 | 795.33 | 40.17 | 796.65 | 481.94 | 388.74 |
| 3 | Modern Steels | 25.9 | 2.03 | 35.68 | 0 | 0 | -100 | 0 | — | 202.86 | 358.1 |
| 4 | Basilic Fly Stud | 441.9 | 37.02 | 1026.98 | 0 | 18.88 | — | 51.61 | — | 171.51 | 155.8 |
| 5 | Ksolves India | 1194.95 | 44.58 | 1416.73 | 1.99 | 8.84 | 44.21 | 28.15 | 38.81 | 171.27 | 128.26 |
| 6 | Life Insurance | 1003 | 16.98 | 634397.3 | 0.32 | 7925.02 | -50.32 | 202220.67 | -6.53 | 148.72 | 129.81 |
| 7 | Nestle India | 2465.15 | 82.15 | 237679.17 | 0.89 | 908.08 | 25.33 | 5036.82 | 9.45 | 137.75 | 108.31 |
| 8 | Abirami Fin. | 41.97 | 37.77 | 22.67 | 4.76 | 0.12 | 250 | 0 | — | 123.6 | 97.07 |
| 9 | Press. Senstive | 8.11 | 1.08 | 120.3 | 0 | 33.66 | 336700 | 34.98 | — | 109.67 | 128.05 |
| 10 | IB Infotech | 159.6 | 28.38 | 20.45 | 0.31 | 0.13 | -75.47 | 0.94 | -41.98 | 104.52 | 95.48 |
| 11 | Remedium Life | 454 | 107.43 | 915.27 | 0 | 6.53 | 76.49 | 468.57 | 195.72 | 102.61 | 70.98 |
| 12 | Exhicon Events | 375.35 | 37.68 | 445.74 | 0.27 | 7.42 | — | 47.29 | — | 100.72 | 79.38 |
| 13 | P & G Hygiene | 16721.8 | 71.77 | 54280.22 | 0.62 | 228.9 | 10.33 | 1133.43 | -0.35 | 100.63 | 80.63 |
| 14 | IEL | 9.97 | 475.32 | 33.27 | 0 | 0.11 | -88.04 | 5.49 | -7.11 | 96.3 | 154.75 |
| 15 | South. Magnesium | 252 | 22.91 | 75.6 | 0 | 0.91 | 203.33 | 2.56 | 141.51 | 92.35 | 75.89 |
| 16 | Tips Industries | 418.15 | 44.86 | 5370.16 | 1.37 | 34.65 | 71.62 | 64.83 | 27.17 | 88.63 | 64.02 |
| 17 | Indifra Ltd | 46 | 33.87 | 33.54 | 0 | 0.04 | — | 0.63 | — | 88.48 | 82.16 |
| 18 | Nexus Surgical | 16.43 | 59.92 | 8.99 | 0 | 0.08 | 157.14 | 0.37 | — | 86.79 | 64.15 |
| 19 | Quicktouch Tech | 223 | 18.52 | 128.91 | 0 | 3.4 | — | 46.36 | — | 86.76 | 74.52 |
| 20 | Harshil Agrotech | 5.22 | 7.05 | 5.64 | 0 | 0.2 | 0 | 3.16 | 150.79 | 86.25 | 220.41 |
| 21 | Kore Digital | 1103.1 | 71.91 | 388.29 | 0 | 3.11 | 307.84 | 15.02 | 822.22 | 85.88 | 77.97 |
| 22 | Sameera Agro | 108.3 | 12.88 | 128.99 | 0 | 6.92 | — | 94.37 | — | 83.96 | 73.02 |
| 23 | Waaree Renewables | 4444.75 | 87.24 | 9258.35 | 0.02 | 64.46 | 158.05 | 324.19 | 338.81 | 83.8 | 95.78 |
| 24 | Haz.Multi Proj. | 361.65 | 8.5 | 548.24 | 0.83 | 13.79 | 45.77 | 112.25 | -40.72 | 83.76 | 85.89 |
| 25 | Padam Cotton | 41.29 | 15.99 | 0 | 2.3 | -139.11 | 0 | — | 83.29 | 61.62 |
Conclusion
When it comes to investing, Agrawal urges individuals to exercise prudence and make informed judgments. Making good judgments at all times is the one thing to remember from his financial advice. Before making any investments, exercise perseverance and do a thorough investigation. Refrain from allowing fear to influence your judgment whether it comes to stocks or an organization. Above all, Raamdeo Agrawal advises that to make sound financial decisions and learn from past mistakes, one must have a disciplined mindset. These are the requirements for holding onto and making healthy profits from any kind of financial transaction.
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