Shankar Sharma is a seasoned investor and a prominent figure in the Indian stock market. He is recognized for his investing and financial analysis expertise. Shankar has a significant presence in the Indian financial markets and is also featured in the media for his insights into equity markets, investment strategies, and economic trends. He is the Vice-Chairman and Joint Managing Director of First Global, an international brokerage firm. Shankar Sharma portfolio consists of 7 stocks with a net worth of Rs 83.1.
He has built a reputation for his deep understanding of market dynamics and ability to identify investment opportunities in Indian and global markets.
Investment Strategy of Shankar Sharma
Shankar Sharma is famous for his unique and unconventional investment strategies in the Indian stock market. His investment strategy focuses on companies with strong fundamentals and management, competitive advantages, and profitability. He emphasizes portfolio diversification across sectors, believes in the potential of small-cap stocks, and advises against panic selling in downturns. His approach is summarized as follows.
Contrarian Investing
Sharma is recognized for his contrarian investment approach. This approach prefers companies that are currently facing temporary problems or whose valuations are depressed. This strategy involves looking for undervalued stocks expected to recover in the long term.
Risk-taking with Small-Cap Stocks
He has recommended investing in small-cap stocks that are on the verge of a turnaround. This indicates a willingness to invest in companies that many investors overlook due to their current financial or operational difficulties.
Investment in "Junk" Stocks
Sharma has an eye for spotting opportunities in what many consider junk stocks and turning them into profitable investments. His philosophy centers on the potential for significant returns from mispriced opportunities or stocks perceived as low-value by the majority of investors.
Technical Analysis of Fundamentals
His investment decisions are based on reading charts and technical analysis rather than traditional fundamental analysis. This approach suggests a focus on market trends, price movements, and other technical indicators to make investment decisions.
Emotional Resilience
Sharma emphasizes the importance of timing in investments. He advises investors not to get emotional about their holdings and to be prepared to enter or exit an investment at the right time. He believes in the flexibility of changing one’s position on an investment based on current market conditions and future outlooks.
In short, Shankar Sharma makes money by daring to invest in places where others are hesitant. He is always ready to change his strategy based on what's happening in the market.
Shankar Sharma’s net worth
Shankar Sharma's net worth decreased from ₹164.8 crore in December 2022 to ₹88.4 crore by June 2023. This decrease in his net worth shows the inherent risks in the stock market where external factors and fluctuations significantly affect the value of an investment portfolio over time.
Shankar Sharma’s notable success
Shankar Sharma's strategic investment in Tata Motors after its acquisition of Jaguar Land Rover (JLR) is a prime example of his notable success. This move shows his ability to identify undervalued opportunities and capitalize on them. It also reflects his deep understanding of market conditions and investment acumen. Achievements like this in the stock market made Shankar a superstar investor.
Current Portfolio holdings
Shankar Sharma’s holdings are from diverse sectors which include technology, infrastructure, chemicals, and pharmaceuticals. As of June 2023, here is a list of Sharma’s holdings:
Brightcom Group Ltd.
Brightcom Group Ltd. is a part of Shankar Sharma's portfolio with a market cap of ₹6,007 Cr. The company specializes in digital transformation solutions including IT consulting, software development, and cloud services. Its stock has shown notable growth that doubles in value over the past year and reflects its robust performance and potential in the industry.
Supreme Infrastructure India Ltd.
Supreme Infrastructure India Ltd. is another holding in Shankar Sharma portfolio with a market cap of ₹56 Cr. It specializes in infrastructure construction and development including roads, bridges, and buildings. The company's focus on bidding for large-scale projects shows its capabilities and ambitions to play a significant role in India's infrastructure sector. It aims to use its expertise to secure and execute projects that contribute to the nation's development.
Shreyas Intermediates Ltd.
Shreyas Intermediates Ltd. is a Shankar Sharma’s portfolio holding with a market capitalization of ₹77 Cr. It operates in the specialty chemicals sector. The company focuses on manufacturing dyes, pigments, and surfactants that contribute to its growing presence in the industry. Its expansion into international markets aligns with the broader economic growth trends in India.
Ishan Dyes & Chemicals Ltd.
Ishan Dyes & Chemicals Ltd. with a market cap of ₹113 Cr is a stock holding in Shankar Sharma’s portfolio. It specializes in producing a wide range of dyes and pigments that cater to various industries globally. The company's expansion into international markets signifies its ambition to tap into the growing global demand for specialized chemical products. Ishan Dyes & Chemicals aims to strengthen its market position and explore new opportunities beyond the Indian market.
Priti International Ltd.
Priti International Ltd., with a market capitalization of ₹196 Cr, is a stock holding in Sharma’s portfolio. It manufactures and exports different products. The company's activities likely span across various sectors that show its robust presence and strategic efforts to expand its market reach. The valuation indicates its significant role in its industry segment and potential for growth.
Conclusion
The key lessons from Shankar Sharma portfolio emphasize the importance of long-term investing, focusing on companies with solid fundamentals, diversification across various sectors, recognizing the potential in small-cap stocks, and maintaining a disciplined approach. Sharma's success shows how adhering to these principles leads to building a robust and profitable investment portfolio.
In conclusion, Shankar Sharma's investment strategy serves as a valuable example for investors looking to understand the complexities of the stock market.