Renowned Investor Vanaja Iyer Invests Over Rs 660 Crore in Five Stocks

Vanaja Iyer, an investor often compared to Warren Buffett and known for her community service, has recently invested a substantial Rs 660 crore across five different stocks, drawing significant attention from the market. Her latest portfolio additions include a 1% stake in Linde India Ltd, a leading industrial gases and engineering company, worth Rs 525 crore. Despite a recent dip in net profits, Linde India has shown a 7% compounded sales growth and 13% EBITDA growth over five years. Its share price has surged by 627% in five years, though it currently trades at a high PE ratio of 115x, above the industry median. The company's chairman is optimistic about the Indian industrial gases market growth.

Iyer also acquired a 1.4% stake in SML Mahindra Ltd (formerly SML ISUZU TRUCK & BUSES LTD), a commercial vehicle manufacturer, for Rs 63.5 crore. This company has demonstrated a strong turnaround, with sales growing at 16% compounded annually and EBITDA at 81% compounded annually, recovering from recent losses to profitability. Its share price has jumped 746% in five years. The company expects continued growth momentum in the Indian Commercial Vehicles market.

Further investments were made in XPRO India Ltd (1% stake, Rs 27 crore), Techera Engineering India Ltd (1% stake, Rs 5.3 crore), and Solarworld Energy Solutions Ltd (1.5% stake, Rs 39.7 crore). The market is keenly observing these moves, given Iyer's track record, with many considering adding these stocks to their watchlist.

Impact This news can significantly impact the share prices of the mentioned companies, potentially boosting investor confidence and attracting further interest. The substantial investment by a well-regarded investor could trigger a positive sentiment and increased trading activity for Linde India Ltd, SML Mahindra Ltd, XPRO India Ltd, Techera Engineering India Ltd, and Solarworld Energy Solutions Ltd. The overall market sentiment may also see a minor uplift due to this prominent investment activity. Impact rating: 7/10.

Difficult Terms EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. PE Ratio (Price-to-Earnings Ratio): A valuation ratio that compares a company's current share price to its earnings per share. It indicates how much investors are willing to pay for each rupee of earnings. Compounded Growth: The average annual growth rate of an investment over a specified period of time longer than one year. Turnaround: A situation where a company that was performing poorly begins to improve and become profitable again. ROC E (Return on Capital Employed): A profitability ratio that measures how efficiently a company is using its capital to generate profits.