Look up the richest businessmen in India and Radha Kishan Damani’s name would pop up right around the top on the list. Touted to be the 4th richest man in India, Radha Kishan Damani is the retail magnate of the country. The founder of D-Mart, an affordable grocery hypermarket, Radha Kishan Damani revolutionized the FMCG retail market with the launch of D-Mart. 

Considered to be a mentor by Rakesh Jhunjhunwala, let’s delve into RK Damani portfolio and his life journey. 

This article covers:

Early days

RK Damani was born to Marwadi parents in 1954. Business came naturally to him, dropping his B.com half to start his trading business. Very soon, RK Damani realised that to earn larger profits, he’d need to shift from just being a stockbroker to a full-time trader. 

After investing his money in the stock market, he became an active trader and used profitable strategies to create a solid portfolio. He used the swing trading strategy to mint profits from stock trading. 

RK was engaged in the ball-bearing business before settling in the stock world. His journey in the stock market began at the age of 32. At the peak of his success in the markets, Damani suddenly quit the world of stock trading with a decision to enter the retail industry. This step would not just change Damani’s life but also that of the retail sector.

Investment journey

In 1992, when the Harshad Mehta scam rocked the stock market, RK Damani was engaged in short-selling which earned him considerable profits. He stood out from the rest of the traders because short-selling was not in style in those days.

RK Damani was, then, influenced by Chandrakant Sampat, a leading investor, and he adopted the long-term strategy of value investing. He bought and held multibagger stocks, which gave him attractive returns on investments. The Radha Kishan Damani portfolio, thus, started growing steadily.

The D-Mart journey

RK Damani started his stint in entrepreneurship through FMCG retail segment. In the year 1999, he managed the Apna Bazaar franchise. However, he did not believe in the business structure and looked to start his very own venture. 

This laid the foundation of D-Mart under the parent company Avenue Supermarts. The first D-Mart store was launched in 2002 in Powai, Mumbai. It became a success and by 2010, D-Mart had 25 chain stores to its name. Given the low pricing that catered to everyone’s needs, the D-Mart chains grew rapidly.

In the year 2017, D-Mart launched its IPO which was a huge success. Offered at a price of Rs. 299 per share, the IPO was listed at Rs. 604, being massively oversubscribed. As of 15 December 2021, the shares of D-Mart were trading at Rs. 4,750 on the NSE

Today, D-Mart has 234 stores across Maharashtra, Gujarat, Delhi NCR, Chhattisgarh, Madhya Pradesh, Telangana, Rajasthan, Andhra Pradesh, Punjab, Tamil Nadu, Daman and Diu, and Karnataka. In FY 2020-2021, the D-Mart chain generated total revenue of Rs. 23,787 cr.

RK Damani portfolio

Currently, RK Damani’s net worth is more than USD 16.5 bn., equalling Rs. 1.23 lakh cr. He holds 14 major stocks totalling Rs. 2.05 lakh cr.

Some of the leading stocks in Damani’s portfolio, for the quarter ended 30 September 2021, are as follows:

Name of the companyStockholding quantityValue of stockholding (Rs. in cr)Stockholding percentage 
Avenue Supermarts Limited (D-Mart’s parent company)422,159,156200,947.865.2%
VST Industries Limited4,981,1291561.432.3%
India Cements Limited 39,277,76877512.7%
Mangalam Organics Limited372,37439.54.3%
Sundaram Finance Holdings Limited4,170,43434.11.9%
Trent Limited5,421,131574.11.5%

D-Mart IPO and  Avenue Supermarts bolstered RK Damani’s portfolio with significant growth. Between March 2017 and September 2021, Radha Kishan Damani’s portfolio grew from a Rs. 30,316 cr. to a substantial Rs. 2.3 lakh cr., boasting a CAGR of 57% over 4.5 yrs.

Recent additions and deductions in Damani portfolio

In the second quarter of the current financial year, i.e. between July 2021 and September 2021, Damani made a considerable investment in VST Industries Limited, a Hyderabad-based cigarette manufacturer. During the quarter, he increased his stake in the company by 210 basis points (QoQ), from 30.2% to 32.3%. Currently, with his stockholding, RK Damani holds a 1/3rd stake in VST Industries Limited as well as in Raleigh Investments, VST Industries’ global promoter.

On the other hand, despite being a long-term investor, Damani reduced his stockholding in Blue Dart Express. The reduction was made in Q2 of the FY 2021-2022 by 20 basis points (QoQ). From the 1.7% stake, he earlier held, RK Damani now holds a 1.5% stake in Blue Dart Express.

Lessons to be learn from RK Damani

Every great investor and businessman has a few lessons to give to prospective investors. Here are a few lessons that you can take from RK Damani’s life:

Stake your own money to reap rewards

The switch from a stockbroker to a stock trader underlines that RK Damani believed in staking his own money to make gains. Investing your own money raises the stakes as you are careful not to lose your hard-earned savings. So, if you want the stock market to work for you, invest your money in quality stocks.

Don’t follow the herd mentality

While others did not practice swing trading, RK Damani did, which helped him grow his portfolio in earlier days. The lesson here is to avoid herd mentality. What others are doing might not always be conducive for your investments. Understand the market, develop your own investment strategy and be different from other investors.

Believe in your business

Though RK Damani made D-Mart public, he did not relinquish his stake in the company. He still owns a major part of the business as he believes in his business model. This teaches you to believe in your decisions and stick to them consistently, no matter how the condition of the market may seem like. 

Have a long-term outlook

Since the last couple of decades, RK Damani has become a firm believer in the long-term investment strategy. He maintains his portfolio and does not make considerable changes to it. You also need to have this long-term outlook if you want to earn attractive returns and grow your portfolio.

Conclusion

One does not have to be born rich to become a millionaire. The life and investment journey of Radha Kishan Damani is a leading testament to this fact. Born in a modest family, RK Damani did not have the proverbial silver spoon. Yet, with a smart investment strategy and a good business model, he charted his journey to reach the pinnacle of success. He was also never afraid of taking big decisions or switching fields. You can also take a leaf out of RK Damani’s life and make your money work for you. 

Manonmayi

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