Markets
Dalal Street's leading women: Seetha, Shivani, and Vanaja's latest power moves
Summary
While there is no denying that the Indian stock markets is a male dominated space, a few less known women investors are leaving a mark on the map when it comes to strategic investments and insightful stock picking.
“If you want something said, ask a man; if you want something done, ask a woman", said the longest serving British Prime Minister of the 20th century, Margaret Thatcher. And no one could argue with that.
In a male dominated space like the Indian stock market, which is always abuzz with the names like Rakesh, Radhikishan, Ashish and Vijay, a few less known women investors are driving a big change.
Let’s look at three such women Warrant Buffets of India and their latest stock picks, in the order of the net worth of their stock holdings.
Seetha Kumari - Karnataka Bank Ltd
Often referred to as the “lady don of the Dalal Street", Seetha Kumari is a famous Indian businesswoman known for her influential role in the pharmaceutical industry. With a current portfolio of 10 stocks, her total stock holdings is worth ₹650 crore as per trendlyne.com.
Seetha’s investment strategy focuses on a diversified portfolio that mitigates risk while ensuring consistent returns across various market sectors. This approach helps stabilise her financial growth even amidst market volatility.
As per the exchange filings made for the quarter ending September 2024 Seetha bought a 1.26% stake in Karnataka Bank Ltd, worth ₹101 crore. The bank's market cap is ₹7,947 crore.
Karnataka Bank offers complete banking services - from personal and business banking to foreign exchange, serving both individual customers and large companies.
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The bank's financing profits experienced a sharp decline last year, dropping from a profit of ₹70 crore in the quarter ending December 2023 to a loss of ₹104 crore in the quarter ending March 2024.
However, the bank made a strong recovery in the quarter ending June 2024, with profits reaching ₹239 crore. Unfortunately, this positive trend was short-lived, as profits fell again to ₹159 crore in the quarter ending September 2024.
In addition to the fluctuating profits, the bank's revenues also saw a dip, falling from ₹2,278 crore in the June 2024 quarter to ₹2,234 crore in the September 2024 quarter. Correspondingly, net profits also declined, dropping from ₹400 crore to ₹336 crore during the same period.
According to the investor presentation by the bank to the exchange, the bank says that this is because they have consciously let go of low-yielding bulk/PSU advances and high-cost deposits. While this has impacted profitability during the period, the bank views this as a transitionary effect.
The stock prices also took a hit for the same reason, as it came down to ₹200 from the July high of ₹244. In the long run however, the share prices for the bank have grown at a compound annual growth rate (CAGR) of 25% in the last 5 years.
Historically, the bank's revenue has grown from ₹5,906 crore in FY19 to ₹8,299 crore in FY24, which is a compounded growth of 7%. The net profit also grew at a compounded rate of 22% in the same period.
In terms of financing profits, the bank has shown a remarkable turnaround - from a loss of ₹340 crore in FY19 to a profit of ₹316 crore in FY24.
If you look at the valuations, the bank has a current PE of 6x which is the lowest when compared to peers from the industry, and the industry median PE is 10.7x. The 10-year median PE for the company is also around 5.7x while the industry median is 12x.
The bank's NIM (net interest margin) was down by 3.23% as the NII (net interest income) fell from ₹903 crore in the previous quarter to ₹834 crore in the quarter ending September 2024.
The gross NPA (non-performing assets) increased from ₹2,578 crore to ₹2,668 crore at the end of the September quarter, reflecting a 1.46% rise.
The bank however still has one of the highest dividend yield at 2.62% in comparison to industry peers.
Shivani Tejas Trivedi - Seshasayee Paper & Boards Ltd
Shivani Tejas Trivedi has more than three decades of experience in the capital markets. Her early career was marked by a stint at Corporate Database, a respected equity research organisation. With a current portfolio of 7 stocks, her total stock holdings is worth ₹670 crore as per trendlyne.com.
Also read: This smallcap hotel stock is turning around. What’s next?
As per the exchange filings made for the quarter ending September 2024 Shivani bought a 1% stake in Seshasayee Paper & Boards Ltd, worth ₹19.5 crore. The company’s market cap is ₹2,081 crore.
Seshasayee Paper & Boards is a well-established player in the manufacturing and sale of printing and writing paper, with over six decades of expertise in the Indian paper industry.
For the quarter ending September 2024, the company’s sales dropped by 6% to ₹398 crore and Ebitda (earnings before interest, taxes, depreciation, and amortisation) also fell by 35% to ₹31 crore, as compared to the previous quarter.
The net profit also saw a drop of 34% from ₹38 crore to ₹25 crore.
This was due to a decrease in average realisation in the domestic market due to intense dumping by international players.
The stock price of Seshasayee Paper & Boards dropped from ₹362 in mid-September 2024 to ₹283 by the end of November 2024. However, it has since rebounded, reaching ₹330 as of 2 December 2024.
From the long-term perspective, the stock prices have seen a 15% compounded growth in the last 5 years.
For the big picture, the company’s sales have grown from ₹1,325 crore in FY19 to ₹1,802 crore in FY24, which is a compounded growth of 6%. The net profit also grew at a compounded rate of 6% in the same period.
The Ebitda grew at a CAGR of 3% from ₹296 crore in FY19 to ₹340 crore in FY24.
When it comes to valuations, the current PE of the company is 11.4x, and the industry average is also 11.4x. The 10-year median PE is 16.94 while the industry average for that period is 8.6x.
According to the Indian Paper Manufacturers Association (IPMA), India remains the fastest-growing paper market in the world with domestic consumption of packaging paper and paperboard growing at 8.2 per cent in FY24.
Vanaja Sunder Iyer - RBM Infracon Ltd
Vanaja Sunder Iyer, a prominent figure in Indian business circles, has consistently demonstrated her acumen in corporate leadership across multiple companies. Currently holding a portfolio of 12 stocks valued at ₹970 crore (as per Trendlyne.com), she continues to make strategic investment moves.
For the quarter ending September 2024, exchange filings reveal that Vanaja acquired a 3.46% stake in RBM Infracon Ltd., valued at ₹31 crore. The company, with a market capitalization of ₹852 crore, specializes in building and maintaining infrastructure projects for mid to large-sized enterprises.
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Unlike conventional bidding processes, RBM secures contracts through direct negotiations with its clientele, which includes major names like Reliance Industries and Tata Projects.
The company has shown some impressive growth for the quarter ending September 2024.
The sales jumped by 66% from ₹38.85 cr for the quarter ending June 2024 to ₹64.52 for the quarter ending September 2024.
The Ebitda also saw a growth of 100% from ₹4.78 crore to ₹9.58 crore between the two quarters. The net profit also doubled from ₹3.39 crore to ₹6.61 crore.
The stock prices jumped from ₹738 at the beginning of September 2024 to an all-time high of ₹1,049 in the first week of October 2024. It however has seen some correction since then as it fell to ₹738 again in mid-November 2024. The current price is ₹843.
The reason for this fluctuation we would only know in time, but if we look at the long-term picture, the stock price has grown at a compounded rate of 190% in the last 2 years since listing.
This could be due to the letter of intent (LOI) from Epitome Industries India Limited worth ~Rs. 957 crore. The order is to be completed in two phases. Phase 1 and 2 by 31 March 2025 and 1 October 2025 respectively.
The company’s sales have grown from ₹35 crore in FY20 to ₹130 crore in FY24, which is a compounded growth of 50%. The net profit grew at a compounded rate of 118% in the same period.
The Ebitda grew at a CAGR of 109% from ₹1 crore in FY20 to ₹19 crore in FY24.
For valuations, the company has a current PE of 45x while the industry median is 32x. The 10-year median PE for the company is 3.05, and the industry’s 10-year median is 21x.
In Q4FY24, the company has also received orders from Nayara Energy Limited worth ~Rs.90 crore, in addition to multiple service orders worth ~Rs. 40 crore from its clientele.
However, despite all this growth, the company hasn’t been paying out any dividends.
Follow the woman power?
The three women Warren Buffetts of India and their latest stock picks have garnered attention today, though the financial performance of the companies in question may evoke mixed reactions from investors.
For more such analysis, read Profit Pulse.
However, these accomplished investors have built their reputations and portfolios worth hundreds of crores on astute stock selection. While the rationale behind their recent buys may not be immediately clear, it would be prudent for investors to add these stocks to their watchlists and monitor their performance over time.
Whether driven by robust order books, favorable industry growth prospects, or other strategic factors, these decisions reflect insights that might only reveal their full potential in the long run—or perhaps remain a mystery altogether.
Note: We have relied on data from www.Screener.in, www.trendlyne.com and www.tijorifinance.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
