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    Radhakishan Damani: Man With The Midas Touch in The Stock Markets

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    mike
    - Radhakishan Damani is a renowned Indian value investor and businessman known as the "man with the Midas touch in the stock markets". He founded DMart, India's third largest retail chain, which has grown profitably and consistently over the past decade. - Damani learned investing by studying companies as investments over decades. He applies the same value investing approach to running DMart, focusing on basics like customers, vendors, and employees. - Though his net worth is estimated at Rs. 5,000 crore, Damani remains obsessively low profile and lets his work in investing and business speak for itself. He continues to spend most of his time on stock investments even as DMart expands across

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    Radhakishan Damani: Man With The Midas Touch in The Stock Markets

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    mike
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    - Radhakishan Damani is a renowned Indian value investor and businessman known as the "man with the Midas touch in the stock markets". He founded DMart, India's third largest retail chain, which has grown profitably and consistently over the past decade. - Damani learned investing by studying companies as investments over decades. He applies the same value investing approach to running DMart, focusing on basics like customers, vendors, and employees. - Though his net worth is estimated at Rs. 5,000 crore, Damani remains obsessively low profile and lets his work in investing and business speak for itself. He continues to spend most of his time on stock investments even as DMart expands across

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    - Radhakishan Damani is a renowned Indian value investor and businessman known as the "man with the Midas touch in the stock markets". He founded DMart, India's third largest retail chain, which has grown profitably and consistently over the past decade. - Damani learned investing by studying companies as investments over decades. He applies the same value investing approach to running DMart, focusing on basics like customers, vendors, and employees. - Though his net worth is estimated at Rs. 5,000 crore, Damani remains obsessively low profile and lets his work in investing and business speak for itself. He continues to spend most of his time on stock investments even as DMart expands across

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    103 views3 pages

    Radhakishan Damani: Man With The Midas Touch in The Stock Markets

    Uploaded by

    mike
    - Radhakishan Damani is a renowned Indian value investor and businessman known as the "man with the Midas touch in the stock markets". He founded DMart, India's third largest retail chain, which has grown profitably and consistently over the past decade. - Damani learned investing by studying companies as investments over decades. He applies the same value investing approach to running DMart, focusing on basics like customers, vendors, and employees. - Though his net worth is estimated at Rs. 5,000 crore, Damani remains obsessively low profile and lets his work in investing and business speak for itself. He continues to spend most of his time on stock investments even as DMart expands across

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Radhakishan Damani: Man with the Midas touch in

    the stock markets


    economictimes.indiatimes.com /markets/analysis/radhakishan-damani-man-with-the-midastouch-in-the-stock-markets/articleshow/32630959.cms
    By Kala Vijayraghavan & Sagar Malviya , ET Bureau | 25 Mar, 2014, 11.43AM IST
    By
    Kala Vijayraghavan & Sagar Malviya, ET Bureau | 25 Mar, 2014, 11.43AM IST
    Damani's likes to let his work speak f or itself
    and his portf olio of listed investments, at its
    last-known market value of Rs 1,731 cr, is an
    eight-bagger.
    ()
    Vol: shares traded
    ()
    Vol: shares traded
    ET SPECIAL:
    Save precious time tracking your investments
    Since the days of Harshad Mehta, he's known to be the man with the Midas touch in the stock
    markets. Rakesh Jhunjhunwala's guru and now India's ace retailer, Radhakishan Damani is
    obsessively low prof ile but is revered among traders and investors. Kala Vijayraghavan
    deconstructs the man the reclusive investor and retailer:
    T hey are three of the best investors in India. Rakesh Jhunjunwala, Ramesh Damani and RK
    Damanithe last two, no relation to the otherare competitors and players on Dalal Street, but
    hearty f riends of f it f or nearly three decades now. Whenever they meet, they have plenty to
    discuss, gossip, share and ask, says Ramesh Damani.
    For the past f ew years, he adds, a poser f rom Jhunjhunwala to RK Damani has become a f ixture
    during these meetings: "When are you going to list your business and let me buy 10% in it?" It's a
    poser that usually draws a gentle smile f rom RK Damani, a pause f or silence, bef ore the room
    reverberates with Jhunjhunwala again. "He doesn't like to talk, he is more willing to listen," says
    Ramesh Damani.
    Radhakishan 'RK' Damani, 59, likes to let his work speak f or itself . And it speaks volumes. It tells
    about a value investor whose portf olio of listed investments, at its last-known market value of
    Rs 1,731 crore, is an eight-bagger. It tells about a stock market trader who has eyeballed Harshad
    Mehta and IT C in their prime, and made a killing. It tells about the retail business that
    Jhunjhunwala covets, one that checks out about Rs 4,500 crore through its cash counters and
    yet barely registers in the happening retail landscape of India.
    For the past f ew years, the imagery of the Indian retail story has been the naked ambition of its
    biggest playersthe building and breaking by Kishore Biyani, the try-again approach of Mukesh
    Ambani, the tripping of Walmart on its own toes. T hey have all grown. But they have also bled.

    Amid these upheavals, Damani's retail chain, D-Mart, has grown consistently and prof itably and,
    in trademark Damani style, silently and unobtrusively.
    Since the days of Harshad Mehta, Damani is known to be the man with the Midas touch in the
    stock markets. He's been Jhunjhunwala's guru. He's revered by traders and investors. But outside
    that community, even in the larger business community, f ew know about him. He's obsessively low
    prof ile. So f ew images of his are available on the Internet that a mention of RK Damani leads
    people to think about his more high-prof ile f riend and namesake, Ramesh Damani. And that is just
    f ine by RK Damani.
    Af ter two weeks of cajoling, Damani met ET late in the evening at his Dalamal Estate of f ice in
    Nariman Point, South Mumbai. He is dressed, as always, in white shirt and white trousersan
    appearance that earned him on Dalal Street the nickname 'White and White'. His f irst words reveal
    anonymity as a def ence mechanism. "Why don't you just write about D-Mart? I am too small a
    person," says the man whose net worth, market players estimate, is Rs 5,000 crore. And this is
    without considering the value of the 52% he directly holds in Avenue Supermarts, the company
    that controls D-Mart; his investment company, Bright Star Investments, holds another 16% in DMart.
    D-Mart has not shut a single store since it started in 2000. At last count, it had 73 storesa
    f raction of that owned by Ambani and Biyani, but generating per store revenues even they would
    like. Its revenues have increased f rom Rs 260 crore in 2006-07 to Rs 3,334 crore in 2012-13, and
    are projected to hit Rs 4,500 crore this year, which would make it India's third-largest branded
    retail chain.
    It has posted prof its at the net level f or each of the last seven years. Damani iterates basics.
    "T here are some 25 things that we possibly do dif f erently and consistently," he says. "He is a
    very f ocused retailer," adds Kishore Biyani, CEO of Future Group, who knows Damani personally.
    "T here is a simplicity and clarity of thought in his approach to the business."
    Investor To Retailer
    T hat comes f rom his days in investing. "Whatever I learnt in lif e is by investing," says Damani. In
    spite of a business that is in its growth stages, investing is what takes up most of Damani's time.
    "Most of the week, I am into investing," he says. "My weekends are f or D-Mart."
    For Damani, the idea of what a business should be was shaped by analysing companies as
    investments. On the stock market, he wears two hats. T here is Damani the trader, trying to guess
    the market's swings. T here is Damani the value investor, with a liking f or brands, cash f lows,
    predictability and the long termmuch like the most f amous value investor of our times, Warren
    Buf f ett (See box). "I liked the consumer business and I invested in such stocks too," he says. "So,
    there was this strong af f inity to start something in the same sector."
    In 1999, when retailing was yet just a concept in India, Damani and Damodar Mall, who is currently
    the CEO of Reliance Retail but was then a brand manager in Hindustan Unilever, took a 5,000 sq
    f t Apna Bazaar f ranchisee in Nerul and added one more in Navi Mumbai. Two years on, D-Mart
    was set up and it took over Apna Bazaar. Damani lef t the stock market, f or six years, marking
    another prof essional turnf rom trader of ball bearings to investor to entrepreneur.
    T he early days were about intensive learning, on the jobstore layout, billing systems, gaining
    the conf idence of vendors. Mall and Damani would pore over books on Sam Walton, who built
    Walmart into the world's largest retailer. T hey would travel to the APMC market in Vashi or
    Crawf ord Market, in Mumbai, to interact with wholesalers and traders. "Within six to nine months,
    we knew we were on to a good thing and had the conf idence to apply the model to multiple
    locations," says Mall, who lef t D-Mart to join the Future Group in 2005. According to Mall, Damani
    was hardworking and unassuming.

    "He is as comf ortable chatting with vendors as with the lowest level of employees," says Mall. "He
    is not seen as this f ormidable owner, but as a very simple, unassuming man who is happy chatting
    with employees with an arm around their shoulders." In the choices he made f or D-Mart, Damani
    f ocused on three things: customers, vendors and employees.

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