The Ultimate Stock Selection Masterclass with Shankar Nath | The Raody Show

Ajouté : 2026-05-24

[00:00:00]Let's speak about stock selection per se. How do you go about screening stocks? What is your process?

[00:00:06]>> You have to work both ways. The first step is a selection criteria, filter criteria, but the next step is a rejection criteria. Now, the problem with any screening application is that how are they going to predict the future?

[00:00:18]There are multiple companies to look at.

[00:00:21]Actually, now that I look at it, I do have a few companies from this 15 odd companies I can look at as a part of my current portfolio. Oh, let's quickly do a hop, skip, and jump.

[00:00:32]>> I remember watching this super viral video of yours connected to screening stocks, which was the copycat investing.

[00:00:38]How did you manage to achieve some 40% returns by just mimicking investing styles?

[00:00:44]>> Tried multiple simulations across using different parameters. Generally, it seems that if you mimic the marquee investor, you can definitely make about 7 8% more than the market.

[00:00:54]>> Priority to turnaround cases. What I'm really looking for even in turnound kind of cases is >> Hello and welcome to the Rowdy Show. I'm Arunima Rao >> and I'm Vijay Rao.

[00:01:16]>> Yes. And today we have a very special guest. We have Mr. Shankr Nat who is a market viz. Yes. And he makes content that his community really swears by. So thanks so much for taking time out for this shanker.

[00:01:27]>> Most welcome. My pleasure.

[00:01:29]>> You know it's absolutely amazing that in such little time you've established such a vast credibility and following.

[00:01:35]>> Let's speak about stock selection per se. How do you go about screening stocks? What is your process to buy one or not to buy one?

[00:01:43]>> So there are multiple ways of obviously doing it. I use something called the GARP framework.

[00:01:48]>> Okay.

[00:01:48]>> The full form of GARP is growth at reasonable price. It's the best of all worlds. So you're looking for stocks which are growing. They're growing their sales, their profits, their EPS and at the same time they're not very expensive. The other part which is ARP means at reasonable prices which means the P ratio the valuation or the PEG ratio of that particular company is on the lower side.

[00:02:11]>> Okay. Yeah. The reasonable price part is the important bit highlight.

[00:02:16]>> Yes. All of that.

[00:02:17]>> You don't want to be paying too much for a company otherwise things can go bad really quickly.

[00:02:22]>> Yeah. In the best of companies, you can end up with a loss if you buy at the peaks.

[00:02:27]>> Correct. By best of companies, you can talk about things like Asian Paints, Vipro. Vipro in 10 years has not made money for their shareholders for example, right? Pilite, you can talk about a lot of these companies, you know, Page Industries, Cream of the Crop at one time, but because they were so expensive in 2021 especially that uh most of the investors have not made any money from it. This sounds a bit like the Japanese market as a whole which was in a extended bare market.

[00:02:56]>> Yeah. The U-shaped kind of a thing that happened for decades, right?

[00:02:59]>> Yeah. About 30 years I think.

[00:03:00]>> Unbelievable.

[00:03:02]>> Got it. And are there specific filters that you use on screener to get the you know guard process in order?

[00:03:08]>> The first thing is obviously growth right. So it starts with the G right which is the growth one. Now there can be different kinds of growth. You can grow companies can grow their sales which is the top line. Think of it like a profit and loss account. Any of you have done >> BCOM?

[00:03:22]>> Um, BA Eco >> BA.

[00:03:24]>> But I'll be able to figure out from operating profits on Eid. So, don't worry.

[00:03:29]>> Cool. So, it's it's a it's a simple ladder. So, basically, it starts with how much you sell and then your cost >> and then you have to pay interest. You do some depreciation.

[00:03:38]>> I know. Yes. Yes.

[00:03:39]>> Right. Okay. Cool. Growth can be your top line which is your sales growth.

[00:03:43]>> It can be your operating profit which we also call as EITA. Even that can grow.

[00:03:47]It can also be your bottom line which is your net profits even that can be growth or what I specifically use is growth in EPS. EPS is earnings per share.

[00:03:57]>> Okay.

[00:03:58]>> Why is that better metric as compared to any of these?

[00:04:01]>> Because suddenly if the equity base explodes >> exactly so EPS is what you as a shareholder it's your right.

[00:04:09]>> Okay. Okay. So when a company earns money the EPS that it earns is is basically your right as a shareholder.

[00:04:17]>> The company can decide okay and the rest of the money I can plow back into the company.

[00:04:23]>> Understood.

[00:04:23]>> Right. So that's how this work. EPS growth can be figured out in multiple ways. It's basically based on periods.

[00:04:29]So what you want is a company which has consistently grown their EPS.

[00:04:35]>> That's what you're looking for.

[00:04:36]>> So you look for a time frame of 3 years, 5 years. I go as much as 10 years also.

[00:04:41]>> So let's try that 10 years, 7 years, five and three. We can do the last one year also but sometimes you know a business is a business. So it's better to give it at least a block of 3 years because you know c certain companies are very cyclical also. Do you want me to show it on screen and you do EPS growth of 10 years and we want to add a number to it. So generally I look for more than 20%.

[00:05:04]>> Year on year >> year on year it's a very aggressive number. So if you don't find enough opportunities, you can go back to 15 also. But I kind of keep 20.

[00:05:14]And you want EPS growth in the last 7 years again at 20 and EPS growth in 5 years more than 20 and EPS growth in 3 years more than 20. So this is your first block which is >> G is sorted.

[00:05:31]>> G is sorted. Okay. The next step is to look at your valuations. The person who created this is a gentleman named Peter Lynch >> of course.

[00:05:39]>> Okay. The GAP thing. Now he used something called the PEG ratio. PEG means it's it's a simple formula. In the numerator it's the current PE ratio of the company. P ratio is basically the price that you're paying for one rupee of profit. That's what it means. And in the denominator it's it's the expected EPS growth rate which is the EPS growth of the future. Now the problem with any screening application is that how are they going to predict the future? M there's no way to predict the future.

[00:06:06]Everything is >> if the company projects it there can be deviations.

[00:06:09]>> Even if the company but no company would say things like I project the next 3 years EPS to be growing at 25%. Very difficult. They would generally project the sales growth or the EITA margin and that's it. Yes, I agree with you except that I remember like you know prospectuses or prospecti when they looked at say 30 35 years back when they would be filed in prebby days with controller of capital issues >> they routinely would project for 5 years or even seven years later on after say about a decade I found that the period started reducing reducing reducing as they realized the volatility and the therefore the futility of projecting too much into It's absolute futile exercise. I mean 5 years, 7 years who's >> who can guess also what's going to be >> manifesting growth.

[00:07:00]>> It's it's it's it's absolutely it's it's good that they kind of don't use that practice otherwise people would making the wrong decisions most of the time.

[00:07:08]>> In fact, I'm talking about the era when quarterly profits and even halfearly profits didn't exist.

[00:07:13]>> Used to be you know annual by annual is it >> then half yearly started becoming a thing >> and finally quarterly >> quarterly. I just hope they don't go to monthly though.

[00:07:23]>> Uh it'll be too difficult for us to evaluate businesses with monthly. So I give it a block of 3 years because you know variations can happen on a one-year period. Now the PEG ratio it's available on screener. Okay. So let me just type this. So can you see this PEG ratio but I don't use this. Why? Because most screening applications they take the current P ratio but in the denominator instead of the future expected EPS they actually take the historical EPS or the historical profit growth rate >> which can be very different >> which can be very different.

[00:07:57]>> So it's of absolutely no use to do this.

[00:07:59]>> Understood. Good thing you called that out. uh and the second thing is that uh one of the brutal lessons which I have learned over the last one and a half years is that uh the PEG ratio does have limitations.

[00:08:12]>> So a PEG ratio is effectively saying that if a company is expected to double in the next one year so which means it's 100% growth correct for that company.

[00:08:21]What Mr. Lynch was trying to explain is that if the company has a 100% growth rate, it's okay to pay a PE of 100. And and I used to kind of think that what he's saying is good. And I invested into companies, but those things did not work out well. So what I now do is I take a very firm rule saying that I don't want companies where the P rat is too high.

[00:08:44]>> So for me that too high is 30.

[00:08:45]>> 30. Understood?

[00:08:47]>> That's the outer limit for me.

[00:08:49]>> We can play around with these numbers.

[00:08:50]We can see how it works. But let's try this out. So price to earnings of less than 30.

[00:08:58]Okay, we want a few more things, right?

[00:09:00]Uh we want a good management because ultimately the karta data is the management of the company. If I have a crook manager or a crook promoter, then you know he's going to take his share and he's not going to leave anything for me. Another realization that happened is that so I love promoters who are owner operators. So they are the ones who have skin in the game. So they're the ones who put in the money and they are the management also >> and I guess they end up looking with a multi-generational perspective. Exactly.

[00:09:27]As compared to a CEO MD hired for 2 years, 5 years.

[00:09:31]>> Correct. For that outside professional manager as we call it. It's a three-year contract, four year contract kind of a thing >> and he's there to make his wealth.

[00:09:39]>> Right? So that's that classical agency problem. Right?

[00:09:42]>> It gets worse when you know they are paid as a percentage of the net profits of this particular year. And so their focus is entirely on the short >> entire on the short term. Exactly.

[00:09:52]Correct. So I love owner operators.

[00:09:55]However, what I've realized is that if you have an owner operator, if the promoter holding is very high, then it's also a problem. So just to give you that example, uh if a promoter holding is let's say 75%. You know, it's the maximum it can go. And then let's say mutual fund has another 10%.

[00:10:14]>> So your floating stock has >> exactly. And let's say FIS also have 5%.

[00:10:19]>> So which means what remains for the public people like you and me the free float is only 10%.

[00:10:24]>> Which means the price of that stock is actually that 10% of people the price at which they're buying and selling which can make the price extremely volatile.

[00:10:33]>> Y >> and therefore manipulation becomes easy.

[00:10:37]>> Manipulation is easy not for us but for uh everyone else including that operator >> who's sitting out of a surat or an Ahmedabad and doing all kinds of things.

[00:10:46]I don't want that to the extent possible. So what I do is I put in another metric here saying that the promoter holding should be more than 35%.

[00:11:01]He should have enough skin in the game.

[00:11:03]So 1/3 should be there and should be less than 65. So add that little extra element also. Okay, let's break at this. See how many comes out.

[00:11:15]It's a bit aggressive. I've kept everything. So let's see. We got 71.

[00:11:19]Then what we want to do is we want to do a market cap kind of sorting because we don't want 100 cr companies and 50 cr companies etc. So we do a sorting. The next step now >> uh before that when you do your sorting after the sorting what is the cut off of market cap that you don't want to look below?

[00:11:36]>> Nothing less than 300.

[00:11:38]>> 300 crores.

[00:11:39]>> Yeah. Because I'm a micro cap guy. I can go I have bought at 300 also certain companies.

[00:11:44]>> Okay. But nothing below 300. But >> below that becomes a liquidity issue.

[00:11:50]You can't sell it at the price you want.

[00:11:52]>> So generally what happens is if it's 300 and below uh even at 300 even at 1,000 actually sometimes the net profit is too little. So I don't want companies where the net profit is barely 10 crores or 20 crores. So that's where you know I also do this check to see that how much is the net profit. It should definitely not be zero.

[00:12:11]>> Of course.

[00:12:12]>> Yeah. It should be more than that.

[00:12:13]Actually let's let's just put this here itself. So where I have the screener and net profit should be more than 20 crs at least.

[00:12:27]So we've knocked down half the companies. Okay. And and you know thankfully what happens is you don't have very low market cap companies. See above 300 I've got a lot of companies here. Right. Now the next step is not on the screener, it's on this table itself which is you have to use this thing called industry because you know we have our own preferences. Uh for example, some of us might not like the real estate industry because it's extremely cyclical, >> right? So >> and it also has the highest percentage of naughty promoters.

[00:13:00]>> Exactly. So that's another point. Right.

[00:13:02]So uh one way of always thinking of uh investing is uh when you're doing stock selection for example you have to work both ways. The first step is a selection criteria filter criteria but the next step is a rejection criteria. So you want to knock off things that you're not comfortable with. So for example I don't know how to read banks or NBFCs. So I knock them off. I don't want realy companies so I knock them off. uh I find it difficult with all this uh civil construction problematic right that's also the same game so I knock them off but what I like is let's say industrial companies I can understand those companies I like companies which are into pure manufacturing I can understand what that business is how it works all these are absolutely fine so so this one here industry so let me tap on this and see we don't want a few of them right so finance I don't understand. So I knock it off. Um yeah, I think everything else is fine. Knock off realy capital market >> was there construction over >> construction is slightly different from uh real estate.

[00:14:13]>> So construction there are these builders like you've got uh >> LNT will come in that >> LNT would come under that capacite infra projects you know from a small cap perspective. So what these guys do is they they construct like this capasite infra projects it constructs highrises in Mumbai. So all those uh CHS which are now getting into this redevelopment kind of thing. So they would uh sitco would give the contract to a capacite infra projects.

[00:14:44]>> So they may be having something to do with the Dharavi project for example.

[00:14:48]>> Exactly. Correct. Correct. They have uh definitely one which is uh Bama. I think it's bori maybe which some something they're doing. So that's a massive project for them. So like this they have massive projects.

[00:15:00]>> So construction is that. Okay.

[00:15:03]>> See again I'm I'm just leaving a lot of stuff but say minerals and mining non-ferris materials you know all that stuff metals but let's just do this for now. So I've knocked off a few right and then comes the tough part wherein you have to now analyze read out about each and every company. So for instance uh uh let's take this one gravitar India why I'm taking this is because just talking to Mr. row on Gravit India. So, Gravit India is a recycler.

[00:15:38]>> Okay.

[00:15:38]>> They've been into this business for quite some time and uh a lot of it is lead recycling.

[00:15:46]The Amaron batteries, the excite battery, the lead because once you use it, what happens to that lead? They extract the lead. And one of the properties of lead is that it doesn't decay.

[00:15:57]>> So, you can use the same lead again and again forever. Okay.

[00:16:00]>> So that's what Gravitar India does and they've been doing it for quite some time >> and it's a great thing that they're recycling also because the same lead stored in the open or you know >> it's so dangerous. Exactly. Correct.

[00:16:12]>> So you know uh it's a very good point you raised because recycling as an industry for me is a mega trend because what has happened is we all understand that recycling is important. Okay. But uh even from a policy perspective the government has introduced things like waste regulations. So there is something called uh BWR I'm forgetting the full form is B basically battery waste recycling rules or something like that.

[00:16:38]Similarly there is PWR which is plastic waste recycling.

[00:16:42]>> There is EPR which is environmental protection uh rules or something like that. So this has actually become a norm. So for companies which are big companies, you know, branded companies, they ensure that instead of their stuff going to some unorganized recycler, it goes to these specific people who are very compliant and they have a proper way of taking care of the waste.

[00:17:05]>> So that's where this is probably big.

[00:17:08]That's my read. But I want to show you something. This company, it's gone by 6 and a half% today.

[00:17:16]Don't worry, it'll go up 10% tomorrow.

[00:17:21]>> I want to show you this. Look at the sales. We're talking about growth, right? In 2014, it was 500 crores. In 2018, it doubled to 1,000. So, in 4 years, it doubled. Let's look at another four years. 2022, it again doubled. 200.

[00:17:35]Let's look at another four years. 4,000.

[00:17:38]And the vision for 2029 is to have a kagger of 25%. which is another doubling.

[00:17:46]>> This projection has come from the company or >> it's from the company. So how do we see that? You go down, you see a list of documents here. So you get the transcript. What's a transcript?

[00:17:58]It's a quarterly earnings call that most companies do. All the good ones do. And uh the transcript has to be of the con call has to be there. It's uploaded here. You can also listen to the audio call also but that's like an hour. So >> time consuming. Yeah. And just to save time, what a lot of these companies do is now they do AI summaries. I'm just tapping on it. So see it's the con call summary which happened in January. So it tell you a lot of stuff that what are we planning to do etc. >> So these guys have a presence at uh Mundra port also.

[00:18:28]>> They have a presence in Mundra also.

[00:18:30]They have a total of 900 sourcing points and 30 plus across the world to Ghana maybe Sri Lanka maybe and they've got it multiple places. Why I'm asking about Mundra is like I've actually done shooting there 30 years back when the port was under construction.

[00:18:46]>> Oh, okay. Nice.

[00:18:47]>> And this is the interesting part. Not very far from there is one of the world's biggest shipbreaking yards.

[00:18:54]>> Alang.

[00:18:55]>> Alang. Yes. Absolutely right.

[00:18:57]>> It's it's a very rich belt. So there is Mundra, there is Alang, there is Gandhi Dhham.

[00:19:02]>> Right.

[00:19:03]>> Uh there's BHJ. Right. So it's it's that place is like >> so for recyclers that's a paradise.

[00:19:09]>> Ah exactly correct correct.

[00:19:11]>> Wow. This is turning into a geography lesson also now.

[00:19:15]>> Yeah. It's I mean but I'm impressed you know your stuff thoroughly. When you say you have researched means you have >> I mean the fun is not in the stock because you don't control the stock but uh the fun is in understanding the business understanding the story behind that particular business that how is it actually working out for uh different companies. So we're talking about uh gravita India similarly there are other companies so there is a company called Ganesha Ecosphere for example which is also into recycling but they do more of plastic recycling. Similarly, there's another one called gen recycling. There is smaller one bahi recycling. Uh there is definitely pontio oxides which is also into the same business. Right? So, everyone has their different nuances on what they do exactly but as a concept I think recycling as an industry I think there are only better days a and I really love this story. Every four years these guys are doubling this.

[00:20:08]>> It's like the rule of 72 except by four.

[00:20:11]>> Exactly. So this is the growth part of things. But then you know you got to back it up with reading the transcripts, reading the AI summary, looking at the PPT. And if you really want a shortcut, you you really pressed for time and you want to understand the story, you should click on this thing called ratings update. So what a ratings update does is this is basically IKRA or Crystal or one of these guys and uh they will actually give you a a clear understanding of the company in like a few paragraphs like about the company right it's a very old company by Mr. Raja Tagaral and they are into recycling of lead acid batteries. See again this is what you know it's trying to explain that it's all about lead and 87% of the revenue of the company comes from lead. The others are very small at the moment. Don't look at the ratings too much. A plus OAON but this is more for your understanding of the of the company basically it's a very good source. There are multiple companies to look at. Actually, now that I look at it, uh I do have a few companies from this 15 odd companies I can look at as a part of my current portal.

[00:21:22]>> Oh, let's quickly do a hop, skip, and jump. Yeah, >> I don't know how much I can reveal, but I can definitely tell you a few. So, so Gravit is something which I'm invested into. Okay. Elicon Engineering, very interesting company. This is >> they've been around for decades.

[00:21:36]>> Absolutely. I remember this name. the Patel family basically right >> and uh they are into gears industrial gears they have a 40% market share in industrial gears the the largest in India uh massive company so that's why I said you know these might look very small companies but they have such a massive market share in their niche uh Gravita is the number one for recycling is the number one for industrial gears Gvari hi-tech a very amazing story >> was this company originally called Gervare polyester film.

[00:22:09]>> Same group. Same. Definitely the same group. You remember those gervari cassets that used to come in those VHF cassett uh VCR VCP. They were into that. It's the same company. Correct.

[00:22:22]>> They did a pivot into films. Even within films there are different kinds of films. So there's polyester films which is like the cheap commodoritized low margin kind of films. But then they got into sun control films. you know, protection films, windows, that kind of stuff.

[00:22:38]>> And even on buildings, they have uh this thing.

[00:22:41]>> So the the sun protection, the UV protection, the heat, this thing. So they are into that.

[00:22:46]>> Interesting.

[00:22:47]>> So they compete, they're the biggest in India by a fair margin >> and they compete with Chinese players.

[00:22:53]Very recently when that Trump problem happened, the tariffs came in.

[00:22:57]>> These guys were one of the most affected.

[00:22:59]>> It's nice instead of calling it a tariff problem, it's the Trump problem. No problem. It is no problem. It is creating problems for no country is spared you know and no industry is spared.

[00:23:09]>> So with Gavari High uh 77% of the revenue is exports >> out of which 45% is from the US.

[00:23:18]>> My god super concentrated >> huh to problem the tariff problem happened these guys were the most affected >> of all companies. I think the most affected was these guys. So maybe these >> guys are now >> a sharp rupee depreciation must be helping them a lot. let's say from 80 to 90 now >> should help at a 50% tariffs no one's buying anyway right so I think that was the bigger problem now that's solved so definitely things would be better they did well they did not do bad but uh see this is interesting to see uh I'm going to show you the quarterly results look at the growth rates right so it's generally been positive but the last two quarters it went down and that's because you know your your customers in the US which is like 30% of your overall revenue they would have obviously said abroad the indecision would be there right so that's why it went down otherwise this is a company which is used to doing you know a good 20 odd percent on average more than that >> do you also give uh priority to turnaround cases >> I don't give too much of a priority there uh what I'm really looking for even in turnaround kind of cases is I'm really looking for what's the next two years of that company and the specific points I want to look at is what's happening to the interest column because you know turnaround cases what happens is these are generally companies which would have taken a lot of debt you know and they were in like massive problems then some kind of a resolution happened and now again you know they're in the path of recovery so still you know you got to kind of make sure that the debt is zero there's no you know kind of past skeletons in the closet or something so that's what you try and look at and uh based on that I kind of go ahead but if I have to choose I would prefer companies which is like from an EPS perspective the trajectory is like that let me let me show it to you visually also it's very interesting to understand this I mean here at least the jump is a bit more you know kind of uh kind of a a J curve kind of a thing but if you see a company like let's say Kaplan Point Labs for example right can you see the the blue bars in a very linear fashion it kind of goes up. So these are the kind of companies I generally prefer.

[00:25:41]>> So for you consistency is the most >> it's important because that kind of protects you uh you know from volatility and and stuff like that to some extent.

[00:25:51]Uh there's some kind of an assurance that things are likely to go well. Uh it's not a sure shot though there can be disruption. So let me show you a a consistent company which is kind of facing that AI disruption this thing. So see this is persistent systems again very consistent right but the problem is with the AI disruption thing coming in all these models you know which were into specifically IT outsourcing IT services they're all kind of unsure that how long are they going to survive in what shape are they going to survive uh earlier persistent could walk into a client's room and say hey sir the contract is getting over we want to renew it we want an escalation of 20% %.

[00:26:36]Now the client will say buzz off.

[00:26:38]>> They'll say I want a discount of 30%.

[00:26:40]What are you talking about 20%.

[00:26:42]>> Huh? Exactly. So you'll ask for a discount. So now your pricing has become a problem. Right.

[00:26:47]>> Which means you have to redraw your entire calculations. Now this guy can't charge a a P ratio of 60% 60 70 etc. So there's no proof that you know just because it's consistent it's going to work out for the next 20 years.

[00:27:05]>> So what I do is I would identify this company I would take some initial tracking position in that company and try and build my conviction over the next two three quarters.

[00:27:17]>> Okay.

[00:27:18]>> So that's what uh I meant by averaging up.

[00:27:21]>> Nice. So I take it at a place then I put in a little more once I get a little more comfortable and you know once you put in real money that's when you really get serious about a company.

[00:27:31]>> Yeah. Then you build conviction with time.

[00:27:33]>> Exactly. And then you'll read the announcements whatever is happening there. Uh and then you understand it better.

[00:27:38]>> Got it. So I remember watching this super viral video of yours connected to screening stocks which was the copycat investing. I think it was inspired by Mr. Monish Pabri. Right.

[00:27:48]>> Right. How did you manage to achieve some 40% returns by just mimicking investing styles?

[00:27:54]>> I didn't achieve it. It was a simulation which I created basically. But uh I've uh tried multiple simulations across using different parameters.

[00:28:04]Generally it seems that if you mimic the uh you know a marquee investor you can definitely make about 7 8% more than the market.

[00:28:12]>> Interesting. Can you take us through that process please?

[00:28:15]>> Sure.

[00:28:15]>> Okay let's do that. Uh let's use screener again and uh within here you see these tools in tools there's a search shareholders so just tap on that okay and already it gives a few ideas uh for us to look at so these are mari shareholders so I think I have done a video on uh dolly kana done one on vijakia one on puringu and one on ashish kachi actually ashish kachia uh so someone tagged it on twitter And uh Ashish liked it and he wrote back saying that this guy has done a great job.

[00:28:50]>> Oh so let let's go with that then.

[00:28:52]>> So this is what screener gives us and uh just go down a bit uh to where it says shareholding. Yeah this one. So see this gives you an idea as to what are the kind of companies he's invested in.

[00:29:04]Okay. So with acutas maybe he's moved out. Uh one thing here that uh this is only those companies where he has a shareholding of more than 1%. Okay.

[00:29:13]Otherwise it's not visible to us but more than 1% they have to declare it. So that's what they've done here. But this is interesting. So he has bought shares in this company called ad county media right so he's taken a 2.92% stake here right all these things are there. Balu forge is taken in some stake. So you get a list of wherever he has money invested and wherever he has exited that particular company. Right?

[00:29:41]So if it is more than 1%.

[00:29:43]>> Mhm.

[00:29:44]>> Then largely this would be small or midcaps. It can't be large caps too many.

[00:29:50]>> Uh yeah exactly. So that's obviously the case. So most of these marquee investors you'll see are people who work on small and uh small and micro cap companies like with Mr. Kolia you'll see a lot of companies which are either micro caps or they arememes. He doesmemes a lot. I'm I'm pretty sure this ad county media whatever it is also category but will that have liquidity problems you want to get out of it and >> I generally don't domemes because a disclosure is a problem bmesmemes get extremely overhyped for no apparent reason third they are not established they barely have two years of data with them the net profits are 10 crores 12 crores something like that too much of a chance investing is a game of probabilities you know you want to take a a better probability rather than taking a speculative one. So if I have to run this simulation what I what I did then I took this entire shareholding chart and I mapped out so let's look at line number one acutas. So in September of 2021 he took in 1.35 uh% of that company. I don't look at the number specifically but for me his entry point was September of 2021. So you know the price at which it happened.

[00:31:08]>> I know the price at which it happened.

[00:31:10]So that becomes point number one and then I also know when he exited which was June of 2025 at least either became zero or less than 1%. So so I have the entry point I have the exit point the price point and I know therefore what was the stock price return. So if I populate this over this entire this thing it'll give you a fair idea.

[00:31:32]I don't need to know the exact date on which he bought but at least I know you know what he did.

[00:31:38]>> And uh when I did that entire math it came to 41%. Uh there's another variation of this experiment I tried. So you can also go to the NYSE website and you can look at what are the bulk deals which have happened to Ashish bulk deals that is on a precise date because I think in a 48 hours you got to or 24 hours you have to declare whatever is the bulk deal that was happening. So that can be another way of doing >> bulk deal is beyond 1%.

[00:32:09]Now that could be less the definition of that in bulk deals I think more of the large caps will figure now >> large caps will also figure there correct especially institutions when they buy massive amounts so it comes in >> all kinds of >> bulk is now here defined not as percentage of the equity but this size total size and >> size of this thing correct exactly >> I think it is if the company itself is 100 kores then one cr becomes a bulk deal or I think there's some formula like that >> for bulk deals. So if someone wants to do it on a realtime basis almost realtime basis they can use the bulk deal chart or if they are okay with you know a kind of a uh a more uh systematic setup then they can use something like this also. So how I use it is I don't look at the earlier ones. I look at the most recent column which is December of 2025. So I know the kind of companies that he's probably looking at now.

[00:33:08]So you know if he has taken a position into a company recently uh let me show you >> this data is available after a lag of three months.

[00:33:17]>> Yes >> after December do we have access to figures as of today?

[00:33:22]>> No that will come only in April but you know what people think that uh he's uh just bought it or you know price and the runup will happen. I think anything like that happens. I've seen it so many times. I've looked at individual stocks also. generally it doesn't happen and see these guys aren't aren't buying it for one month and keeping it right look at this it's over a few quarters right all of them yeah it's all there this beta trucks he's been holding since 2023 he's been holding it yeah so there are enough companies that he has now see this gervari hi-tech right so he had it and then he came out of it it was expensive at that time definitely June 2024 it become expensive by that see ultimately uh what I always say is that don't copy the guy you can copy his strategies And then you kind of tweak things like I gave you that example of Peter Lynch wherein if I copy his PEG ratio, it did not do well for me. So I tweaked the PEG ratio. So now my GARP doesn't have the PEG ratio. It uses the P multiple which I think is a lot more superior as compared to the PEG ratio. Gives me a lot more comfort.

[00:34:38]filter the one that we did that is based on my comfort. Now thankfully Mr. Kachola also apparently doesn't like NBFCs and banks and those kinds of companies he's also like uh you know what I do only so so that's good.

[00:34:53]>> Uh so he also doesn't have much of those.

[00:34:56]>> Very cool.

[00:34:58]>> So this is pretty helpful. uh and almost everyone you see he or she would be uh mostly into small caps and micro caps only. Uh outside of the names which were already here uh there are a few more you can look at uh uh Siddhhat Ba who just uh passed away. Uh-huh. So, you know, he's he's done a great he did a great job with Equitas over so many years, right? So, what is the portfolio for those guys? Uh uh SOIC another YouTuber uh >> huh they have something called persistence capital that's this so you can you can really see inside persistence capital use this as an ideation source for you and then you have to read up those stories which I've been telling you. So it's it only comes out when you read into the situation. Like if I had not read about that gravitar, the fact that they are doubling their sales every four years, I might have a very short-term view of that company. But now I have at least a four-year view of that company.

[00:36:04]Okay. I'm going to persist with these guys till at least 2029.

[00:36:07]>> Yeah.

[00:36:08]>> I want to see how >> you guys may not persist with persistent because of the reverse story.

[00:36:13]>> Correct. understood.

[00:36:14]>> So persistent has that disruptive this thing but there also it's very interesting because uh all the IT stocks are down >> but uh AI is going to uh affect different kinds of IT stocks in different ways.

[00:36:30]>> So it is not just your infosys of the worlds. Infosys is just one part of it.

[00:36:34]It's called IT services outsourcing.

[00:36:36]Then there's something called engineering research and design which is uh your automotive dashboards which are now there you know that that's a lot of software >> particularly the EV >> the EV thing correct not just EV even the regular one also but EV definitely is like second generation kind of stuff uh so who are we talking about we're talking about people like uh KPIT technologies we're talking about Tata Technologies talking about Tata Alexi these guys are specific specific for this kind of automotive kind of things.

[00:37:09]Uh then there is the next type of IT company which is your uh business process management companies which is your Genpack which is your WNS kind of companies right ex kind of companies then you have SAS companies SAS companies just say Orion Pro yeah intellect design then you have uh consumer internet companies like Zumato Swiggy PB fintech those kinds of people so there are already five different kinds of companies which are there >> we had one small category or a subcategory to this companies which are supplying components to data center.

[00:37:46]Huh? That was also one more, right? So the data center part. Correct. Exactly.

[00:37:51]So infra it infra companies are in their own different track. I mean they don't apply for this the IT stocks per se.

[00:38:00]They are in their own uh this thing and they're doing extremely well >> and they're likely to do even better.

[00:38:06]>> Yeah.

[00:38:06]>> Awesome. Thank you so much Shanker. This is such a good rundown of different types of screening tools and different ways to do copycat investing, but also to tweak it, not just blindly copy.

[00:38:17]>> And in fact, I will call it uh really smart investing. You've uh taken the best ideas from every direction and synthesized it into a absolutely bulletproof portfolio.

[00:38:29]>> I'm a shameless cloner, right? So, so it's definitely this thing. But, but yeah, there's not too much originality in the world actually, right? I think uh what we do even in our regular lives is basically based on our experiences or what we see others doing. Right? So I've kind of used that same principle inside my investing that let me learn from people who have done it and who have made those mistakes and let me uh kind of replicate their successes and avoid their mistakes. So that's >> and now you're helping so many others.

[00:39:00]>> Yeah.

[00:39:00]>> Thank you so much.

[00:39:01]>> Thank you. Most of