Vijay Kedia’s Insights on the Indian Market: A Shift to Longer Bull Runs

Vijay Kedia, a prominent figure in India’s investment landscape often dubbed as the country’s Warren Buffett, recently shared his observations about a remarkable evolution in the Indian stock markets. He noted that bull markets are becoming more prolonged, while bear markets appear to be shortening. Kedia, who has faced substantial losses of over ₹600 crore since October 2024, suggests that the market is currently experiencing a consolidation phase, although he doesn’t dismiss the possibility of further corrections. This volatility, he argues, is a typical trend and may be temporary.

Kedia’s Long-Term Stock Picks

Kedia’s experience and success in stock selection have led him to maintain faith in two specific companies that he’s held onto for nearly a decade, even amidst current market challenges. Both stocks are currently trading at substantial discounts, prompting curiosity about what keeps Kedia invested in them.

Atul Auto Ltd (AAL)

Founded in 1986, Atul Auto Ltd specializes in the manufacturing and sale of three-wheeled vehicles and spare parts. The company has established a robust after-sales support system through its dealership network. With a market capitalization of ₹1,299 crore, AAL commands 5% of the domestic market share in the three-wheeler sector.

Kedia has been a shareholder of AAL since December 2015, whether directly or through his investment firm. As of the end of 2024, he holds a 2.71% stake via Kedia Securities Pvt Ltd, alongside 18.20% ownership in his individual capacity, totaling over 20% of the company. This significant stake reflects Kedia’s unwavering confidence in AAL.

Despite recent challenges, such as a decline in sales from ₹667 crore in FY19 to ₹527 crore in FY24—a 21% drop—there are signs of recovery. The EBITDA has halved from ₹81 crore in FY19 to ₹40 crore in FY24, though recent quarterly results show promising figures with profits nearing ₹12.5 crore from April to December 2024, marking a 79% increase year-over-year.

The stock price has surged approximately 212%, climbing from ₹150 in March 2020 to ₹468 by March 2025. This price remains 44% below its all-time high of ₹844.

Electric Ventures and Future Prospects

In 2023, Atul Auto ventured into the electric vehicle market, introducing two electric three-wheelers, Atul Mobili and Atul Energie. Neeraj Chandra, the new Managing Director, emphasized the company’s commitment to leading the green energy revolution in the three-wheeler sector.

Repro India Ltd (RIL)

Established in 1993, Repro India Ltd operates in the printing sector, offering comprehensive services that extend beyond mere printing. This includes creative design, binding, and digital printing. With a market cap of ₹622 crore, the company boasts a diverse clientele, including prestigious institutions like Cambridge University Press and Oxford University Press.

Kedia’s investment in RIL also dates back to December 2015, where he currently holds 6.33%, valued at approximately ₹39.4 crore as of December 2024. Notably, fellow investor Madhusudan Kela holds 3.32% in RIL, further validating its potential.

Over the past five years, Repro’s sales have seen a modest compound growth of 4%, increasing from ₹399 crore in FY19 to ₹479 crore in FY24. However, net profits have been a concern, dropping by 50% from ₹24 crore to ₹12 crore in the same period.

Despite challenges, the stock price has appreciated from ₹320 in March 2020 to ₹434 in March 2025, a 35% increase, although it still represents a 56% discount from its peak of ₹994 in December 2023.

Strategic Growth and Future Outlook

According to Chairman Vinod Vora’s latest remarks, Repro India is at a critical growth juncture, thanks to strategic initiatives that position the company for expansion. The adoption of a more integrated service model is expected to bolster revenue and enhance the customer experience.

The Kedia Investment Philosophy

Vijay Kedia’s focus on small and mid-cap stocks often leads to substantial returns, making his investment choices noteworthy in the market. His loyalty to Atul Auto Ltd and Repro India Ltd reflects a deep-rooted belief in their growth potential, even amid financial turbulence. Investors may want to keep a close eye on these companies, especially given the backing of two renowned Indian investors.

In conclusion, while the future remains uncertain, Kedia’s long-term investments in these stocks suggest a level of confidence that could yield rewards for those willing to follow his lead.

Disclaimer: The insights shared in this article are for educational purposes only and should not be considered as investment advice. Always consult with a financial advisor before making investment decisions.