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Dhawan's Bold Bets: Investing in Pain for Profit
24 Oct
Summary
- Investor Ashish Dhawan buys into three struggling companies.
- He increased his stake in Religare Enterprises significantly.
- Dhawan invests in companies undergoing repair despite challenges.
Ashish Dhawan, founder of ChrysCapital, is demonstrating a contrarian investment strategy by acquiring stakes in companies facing difficulties. His recent filings reveal investments in Equitas Small Finance Bank, Allcargo Global, and Religare Enterprises. These companies are all undergoing repair despite significant stock price drops or regulatory hurdles.
Dhawan has re-entered Equitas Small Finance Bank with a 4.1% stake, a bank that has seen its net profit fall but is showing signs of recovery with easing NPA ratios. He also initiated a 1% position in newly listed Allcargo Global, which has experienced a sharp decline post-listing due to operational challenges and losses.
Additionally, Dhawan increased his holding in Religare Enterprises to 7.3% after the RBI blocked its lending business plan. Despite Religare's volatile earnings and a recent operational loss, Dhawan's substantial investment suggests a belief in unlocking the value of its core assets, particularly Care Health Insurance.
These investments highlight Dhawan's approach of buying into pain, where stocks have fallen and earnings are low, indicating a conviction that these businesses are on a path to recovery. Investors are advised to watch these companies' upcoming quarterly results and regulatory developments.
